Ours is a NGO.We terminated one of our employee because of habitual absenteeism.This employee had opted for a loan from our employees\'cooperative socity.(registered ,independent)Kindly pls. guide me whether we can deduct loan amount from the gratuity amount ? SHETH.
From India, Jhagadia
From India, Jhagadia
Hi 1) Gratutity, PF etc. payments we can not stop because they are statutory payments. 2) But you can hold the same for some time and ask them to clear the loan amount. Rgds Ganesh
From India, Hyderabad
14From India, Hyderabad
Dear Sheth,
Do you have procedure of proper loan application and of seeking a surety who undertakes to pay back the loan in case the person defaults ?
If no such provision exists then only his wages/salary can be held back.
Regards,
Col.Suresh Rathi
From India, Delhi
Do you have procedure of proper loan application and of seeking a surety who undertakes to pay back the loan in case the person defaults ?
If no such provision exists then only his wages/salary can be held back.
Regards,
Col.Suresh Rathi
From India, Delhi
Dear Bankim Sheth,
With regards to your query as to whether you can deduct loan amount from the gratuity. Answer to the query is a BIG NO. You cannot deduct the loan amount from the gratuity dues. Section 13 of the Payment of Gratuity Act,1972 is relevent, which protects the gratuity and is reproduced below:-
Section 13. Protection of gratuity.—No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.When an amount accrual on account of gratuity has a legal protection under the law, recovering or setting off ANY amount from it is unthinkable.
However you free to recover the loan amount from the persons, who stood grantors in favour of the individual.
BS Kalsi
Member since Aug 2011
From India, Mumbai
With regards to your query as to whether you can deduct loan amount from the gratuity. Answer to the query is a BIG NO. You cannot deduct the loan amount from the gratuity dues. Section 13 of the Payment of Gratuity Act,1972 is relevent, which protects the gratuity and is reproduced below:-
Section 13. Protection of gratuity.—No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.When an amount accrual on account of gratuity has a legal protection under the law, recovering or setting off ANY amount from it is unthinkable.
However you free to recover the loan amount from the persons, who stood grantors in favour of the individual.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
PMRPY-DEDUCTION -SOLUTION.xls