Questions & Answers
Deduction of housing allowance from the gratuity upon termination
Hello.
I have been terminated recently.
My employer plans on deducting the remaining months of my housing allowance from my gratuity that were paid in cheques to the landlord.
Is this as per the law?
Dear Questioner,
If you were terminated, the employer has the right to ask back the money paid for the rent (if he paid for it in advance).
In this situation, he can offset the amount from the amount that you need to receive at the end of your employment or you are obliged to pay back the amount.
Did he give you any reason for the termination?
Did he send you the termination notice at least 30 days before your last working day?
If the answer is no, you have a strong position and you can negotiate with him regarding the housing allowance.
Best regards,
Raluca Gatina
