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rahuldurgesh@gmail.com
One of my friend had worked in a co. approx 6 years. He was some irregular since 3 months and was on leave for a week before leaving the co. After expiry of his leaves he had not joined and had tender his resignation suddenly without given notice period.
He had also availed more than 20 leaves during the service of existing calendar year. In that case employer is not doing clear his full &final settlement. employer saying submit the outstanding amount (like notice period, over leaves availed etc). Help me out, is it possible to adjust outstanding amount from his earned gratuity payment etc. Should my friend pay the co. dues before his settlement? Legally employer can do this?

From India, Calcutta
umakanthan53
5967

Dear RD,
As per the protection provided for u/s 13 of the Payment of Gratuity Act,1972, no deductions nor any adjustment towards any dues to the employer could be made from the amount of gratuity payable to an employee under the Act. But I faintly remember the Kolkotta High Court took a departure and probably ruled that some outstanding dues to Employees' Co-op Society can be adjusted from the amount of gratuity payable to an employee - I am not sure. The dues mentioned in your post are compensatory in nature due to the non-fulfillment or breach of the contract of employment by the employee. Therefore, no adjustment could be made against such dues from his gratuity even if the employee is willing to do so by compulsion.

From India, Salem
Bharat Gera
223

Employee can authorise in writing to the company to recover the dues from gratuity if it is being paid directly by the company. Where there is gratuity trust then dues can not be recovered from the gratuity amount. Employee will be required to clear the dues first as the trust is legally a separate entity.
Warm Regards
Bharat Gera
HR consultant

From India, Thane
Venkata Vamsi Krishna Patnaik
199

Hi Agree with Mr.Umakanthan and Bharat here that Gratuity amount cannot be adjusted or withheld for any dues from employee. Venkata Vamsi Krishna
From India, Hyderabad
gannahope
68

Ya
right..
under graduity act or any existing labour laws of the land....the employer has no right to deduct any amounts of non following notice pay before leaving that company....
when coming to usage of excess leaves can be managed by producing medical doctor 's report ...where any employee has right to use sick leave...
The only deduction of any coopsociety bank loans can be deducted with some easy instal ments There are several court judgements are there ...none can deduct any amounts from paying total graduity...
if the employee is intersted to pay first took total graduity and re pay any dues..ok
if the employer does not covinced any authority court near by wiill do justice favourably to worker...
i think u know well graduity limit extended now upto 10 lacs..recently...all the best my friend

From India, Nellore
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