Notice Pay Recovery - Can It Be Recovered From Gratuity?

Assume there are some arrears outstanding. The employee with the consent request for a GRATUITY ADAVNCE. The employee uses that gratuity advance to clear the arrears. While paying gratuity, can we deduct the amount taken as GRATUITY ADVANCE and pay the rest of the GRATUITY AMOUNT.
Please advise.

It is better not to make it official. Therefore, in the gratuity payment order (in form L sent to the employee), you should show the full amount as payable and separably deduct the amount paid as gratuity advance as a general advance. Do not show it as gratuity advance but just advance or general advance and that can obviously be deducted from the full and final payment due to the employee.
Madhu.T.K