Questions & Answers
Agreement with the employee to get an advance payment on gratuity
Dear Legal Advice ME
I own a company in DIFC which is struggling due to the current crisis and employees were given three months notice because the company will probably be forced to close.
One employee is asking if he can take his gratuity early as his wife has lost her job due to COVID-19. Can I legally give him a loan against a percentage of his gratuity?
He has worked for me for 16 years.
Dear questioner,
Definitely, you can give him a portion of the gratuity as a loan but please make sure to prepare the proper paperwork so that your interest is protected at all times.
Kindly take an undertaking from the employee that he is taking this loan against his accrued gratuity.
If need be, kindly contact us at our phone for a detailed discussion or write to us at our email for further assistance.
Yes.
You can give the employee a portion of the end of service gratuity until the settlement of their benefits, provided you have an agreement.
You can contact us through email.
Yes sure, but must prepare an agreement between the company and him.
To assist and help you, contact us at by phone or email.
Dear Questioner,
If the employment contract of that employee has been terminated, based on both parties consent, you can give him early all his entitlements.
But make sure that everything will be in writing and it will be mentioned that he doesn't have the right to ask the same after the termination of the notice period and he will refrain from filing any case/complaint against the company and its representatives.
In case you need our help in drafting the consent between the company and employee, please feel free to contact me at my email.
Best regards,
Raluca Gatina
