my question is can we deduct notice period from gratuity if employee is agree to do so?
From India, Jamnagar
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No. Gratuity payable to an employee is protected. Even it cannot be attached to any execution of any decree or order of any civil, revenue or criminal court. Hence, you are not legally correct in making deduction even though the employee is agreed to do so.
Thanks & regards,

From India, Mumbai
Alternatively, you can collect a cheque for the amount due to the company and then issue a cheque for full amount of gratuity - that is win-win situation !
From India
Dear friend,
Are you relieving the person/employee on the same date of notice that is retrospectively? And hope, that is not a case of good governance..and thus there is no question of having gratuity from the notice date, this may really put every one in trouble. Better, settle in good kind.

From India, Arcot
Sorry, payment is not protected. there was typographical error. Protection of Gratuity is there under section 13 of the Act. Regards
From India, Mumbai
No, We cannot deduct any dues from the gratuity settlement.
1. Recover from his full and final settlement- leave encashment, pending salary etc.( i am sure after working for 5 years employee will have some leave bal, etc)
2. If the employee does not have any other earnings he has to pay notice pay by cash.
3. if he does not have cash, please ask him to serve (work) during this notice period.

From India
No, Notice Pay cannot be adjusted against Gratuity.
The best way to handle this would be to:
a. Make necessary adjustments in the money payable to the employee towards his full & final payment, to recover the Notice Pay.
b. Ask the employee to pay the balance amount due against Notice Pay.
c. Pay him his Gratuity in full since this money cannoy be adjusted against any money recoverable from the empoloyee.

From India, Mumbai
Dear Friend,
I fully agree with the views expressed by learned members. The Gratuity Act does not provide any deduction on account of shortfall of notice pay, which is contrary to law. Gratuity is payable to an employee who has completed a continuous period of 5 years services.
If the shortfall of notice period is not settled by the employee intentionally, you may hold his release & experience letter. You may also delay his final settlement.Even you may deduct payment of notice period from his last month salary provided the employee fails to fulfill the terms of employment, like non payment of notice pay etc.However, you are to communicate him in writing about such deduction from his last month salary.
Please remember that no recovery for shortfall of notice period can be made from statutory payment like PF & Gratuity. If the matter is under litigation in a court of law, you are bound to follow and abide by the order passed the court.

From India, Calcutta

Dear Sir,
The employer will have every right to recover/adjust every amount lawfully due to be recovered from employee. No matter under which head it is being recovered.Under the provisions of The Indian Contract Act the amount could be deducted/ adjusted and recovered under the Principal of SET OFF.
The payment of Gratuity Act - 1972 has nowhere mentioned that it is PROTECTED amount.
Even if amount is protected it could always be adjusted under the Principal of SET OFF.

From India, Mumbai
My query is related to this thread. One of my friend has signed bond, She wants to break the bond. Can company recover the bond amount from PF and gratuity amount? Company have not given any kind of formal training to employees. In such case, Is company justified in making bond?

From India, Mumbai

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