Deducting money owed from gratuity
The employee owes us a loan balance. Can we take it from gratuity?
The situation
The employer may deduct sums the worker owes it from end of service dues.
The law
- Art. 54, Labour Law No. 14 of 2004: Gratuity of at least three weeks of last basic wage for each year after one full year of service, pro rata for part years
What it means for you
Deduct only documented debts, such as a signed loan agreement, and show the deduction on the final statement. A gratuity of QAR 20,000 with a QAR 3,000 loan balance leaves QAR 17,000 payable.
What to do
- Collect the loan agreement.
- Show the deduction clearly.
- Pay the net amount on time.
- Get the employee's signature.
We can do this for youEnd of service gratuity calculation and final settlement: QAR 500