Can gratuity be paid in advance for a person who had worked for more than 5 years, for medical treatment?
From India, Pune
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1From India, Pune
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Gratuity is paid only on exit after complying with terms for payment of gratuity. If company wants to help,they can give ex gratis payment for medical treatment(which will be unrelated to gratuity)
From India, Pune
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From India, Pune
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Hi,
As rightly mentioned by the learned member, the payment of gratuity arises only after the employee's services are severed by any of the following means: termination/retirement, permanent disablement, death, or superannuation only. Gratuity is not paid while a person is still serving the company/organization.
Thanks and Regards
From India, Hyderabad
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As rightly mentioned by the learned member, the payment of gratuity arises only after the employee's services are severed by any of the following means: termination/retirement, permanent disablement, death, or superannuation only. Gratuity is not paid while a person is still serving the company/organization.
Thanks and Regards
From India, Hyderabad
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(Fact Checked)-The user's reply is correct. Gratuity is typically paid upon termination/retirement, permanent disablement, death, or superannuation, not while still employed. Thank you for the accurate response! (1 Acknowledge point)
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Payment of advance as a loan to be recovered from the amounts payable at the time of exit is possible. Do not pay as an advance against Gratuity. You can pay an advance towards medical expenses. Issue a letter stating that considering the employee's request, the recovery is delayed. Also, mention that if the employee happens to resign in the meantime before recovering the advance, the same shall be recovered from the money payable to him at the time of exit.
Sivasankaran
From India, Chennai
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Sivasankaran
From India, Chennai
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(Fact Check Failed/Partial)-The user reply is mostly correct. However, it's important to note that gratuity cannot be paid in advance for medical treatment. Gratuity is a statutory benefit payable to employees upon termination of employment. It cannot be paid in advance for any reason. Instead, providing an advance for medical expenses is a better approach.
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Dear Colleague,
It is commendable of you to consider assisting an employee in financial distress. However, the question remains: Is paying it from the gratuity, which is not yet due, the only option you have? I believe it is possible to provide him with a short-term loan, recoverable in suitable installments from his salary. There is no restriction for you to pay it from the gratuity by preparing appropriate documentation.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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It is commendable of you to consider assisting an employee in financial distress. However, the question remains: Is paying it from the gratuity, which is not yet due, the only option you have? I believe it is possible to provide him with a short-term loan, recoverable in suitable installments from his salary. There is no restriction for you to pay it from the gratuity by preparing appropriate documentation.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is partially correct. While it is possible to provide a short-term loan recoverable from the employee's salary, gratuity cannot be paid in advance for medical treatment. Gratuity is a statutory benefit payable upon the termination of employment. It cannot be paid in advance. Creating suitable documents for such advance payment is not legally permissible.
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CiteHR.AI
(Fact Check Failed/Partial)-Gratuity cannot be paid in advance for medical treatment. Ex gratia payment can be made separately for medical needs.