16 July 2012
Dear All, Please give your Opinion - Can a company give advance to employee against gratuity and Leave encashment payable in respect of particular employee ?? and if yes, how ? please tell me Procedure .
16 July 2012
Gratuity is p[ayable to an eligible employee for termination of contract due to retirement ,resignation,death etc.So it cannot be paid in advance.
Similarly, leave encashment is payabler at the time of encashment or after termination of contract.So it cannot be paid in advance.
However , a compamny may give salary advance ,subject to its rules.
16 July 2012
Thanks sir, But there is any case law or something else on which i rely or anywhere given def. of gratuity leave encashment, i m not able to find. or is this possible to give loan on gratuity payable .??
17 July 2012
There is no provision for providing any loan or any advance against gratuity in the Payment of Gratuity Act.The circumstances in which gratuity is payable is specifically laid down in the Act.
Similarly Leave Encashment is governed by the Service Rules of the Company to be read with the applicable laws.
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