Partner - Risk Management
Head - Human Resources
Educator, Management Consultant & Trainer
Jayendra Varma
Deputy Manager Hr
Jalini Mehta
H.r. Consultants

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I am Jay, My query is one of our employee left the organisation recently with out serving the notice period.
In the last month he took the salary advance. In this month he worked for 15 days only.
Can i deduct that salary advance from his statutory bonus?


Hi Jay, Yes you can, however seek an advise from an advocate who deals with corporate affairs.
The law allows the employer to recover from the full and final settlement, all amount legally due from him excluding PF, ESIC and gratuity. Therefore, any advance can be recovered from the employee who has left the company without notice.
You should made a detailed working of the amount due to him and how much is to be recovered (including notice period pay) and then based on the same, make the payment (or in case you need to recover from him you need to send him a legal notice of recovery)

Dear Jay
Please look at the appointment letter issued by your company to the employee.If it talks about notice period you have right to adjust bonus against notice period but if it does not mention then legally you can't.Also make sure that the appointment letter is duly accepted by the employee because all the payments to the employee is governed by the appointment letter. When the employer issues the appointment letter and it is duly accepted by the employee in legal terms it becomes contract and both the employee and the employer are governed by such contract.
Jalini Mehta CA and management consultant

SALARY advance is normally permitted to meet any emergency expenses , generally advance amount should be not more than 2/3rd salary of days present.The Salary/ Loan Advance application Form should be having a declaration clause that any amount if left uncovered , that can be recovered from any of dues I shall be entitled like, bonus, Leave encashment etc.You can prepare his FNF and recover advance amount and even if it remains, balance can be recovered from BOUNS payable to him.
RDS Yadav
Labour Law Advisor
Navtarang HR Services

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