Dear Sathya,
We dont have any right to deduct the amount of salary advance from the P.F and as well as Gratuity. Because it is the part of Statutory compliances. We can recover from full and final settlement through (Leave encashment or Hold salary or Eligible reimbursement ) settlement. Other than that we cant do anything. One more thing is that 40k is the salary advance or what? When ever employee is quit their job ask them to full fill Exit forms which consist of reason for leaving any advance payment details. Ask him to get the signature from the immediate Manager. That will help us to functioning the process very well. Its my advice.
We dont have any right to deduct the amount of salary advance from the P.F and as well as Gratuity. Because it is the part of Statutory compliances. We can recover from full and final settlement through (Leave encashment or Hold salary or Eligible reimbursement ) settlement. Other than that we cant do anything. One more thing is that 40k is the salary advance or what? When ever employee is quit their job ask them to full fill Exit forms which consist of reason for leaving any advance payment details. Ask him to get the signature from the immediate Manager. That will help us to functioning the process very well. Its my advice.