One employee is involved in theft cases in the office. An FIR has been filed against him. Criminal cases are being tried in two courts, and department inquiries have caused delays in his pension and gratuity payments for three years. Interest on the delayed gratuity has been given to him.
Are the office/officers personally responsible for the delayed payment of pension benefits and gratuity? Please advise.
From India, Ahmedabad
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Are the office/officers personally responsible for the delayed payment of pension benefits and gratuity? Please advise.
From India, Ahmedabad
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Dear Shailesh,
In every organization, a hierarchical arrangement exists, and matters such as hiring and firing of employees, fixation and revision of salary/wages, transfers, promotions, settlement of final dues on termination of employment, etc., are ultimately decided by the chief executive only. However, such decisions may be influenced by the officers at lower levels in the interest of the organization. Therefore, these officers cannot be personally held responsible for any problems that may arise later due to such decisions, unless an officer misuses or negligently exercises powers specifically delegated to them, resulting in financial losses or disrepute to the organization.
From India, Salem
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6185In every organization, a hierarchical arrangement exists, and matters such as hiring and firing of employees, fixation and revision of salary/wages, transfers, promotions, settlement of final dues on termination of employment, etc., are ultimately decided by the chief executive only. However, such decisions may be influenced by the officers at lower levels in the interest of the organization. Therefore, these officers cannot be personally held responsible for any problems that may arise later due to such decisions, unless an officer misuses or negligently exercises powers specifically delegated to them, resulting in financial losses or disrepute to the organization.
From India, Salem
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The delay in payment of gratuity is explainable, and there is no criminal motive (mens rea in the legal language) involved. Therefore, there cannot be any personal action against the deciding authority(ies) involved in this matter. The Payment of Gratuity Act is a complete code in itself, and any action can lie therein only; the normal criminal courts have no jurisdiction. Your bonafides in the matter are clear from the fact that interest accrued thereon is being paid to the employee. Theft is an offense involving moral turpitude and is a reason sufficient to withhold the gratuity and pension until the proceedings are decided.
Could you not hold a departmental enquiry and suitably punish the employee rather than wait for the criminal proceedings, which will be a long-drawn process?
From India, Mumbai
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Could you not hold a departmental enquiry and suitably punish the employee rather than wait for the criminal proceedings, which will be a long-drawn process?
From India, Mumbai
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The delayed payment of gratuity does not attract interest unless the delay is due to fault of the employee(as he was under trial for his misconduct). Further, the employee is entitled to interest on delayed payment on gratuity from the date of due to till the date of payment is made for the employee acquitted from the charges.
In the instant case no official can be held responsible for additional financial burden for payment of interest paid for delayed payment of gratuity of employee under trial for misconduct vice versa whether to grant monetary to the officials succeed in forfeiting the gratuity of the employee for his alleged misconduct.
A case detail is given below to refer
IN THE SUPREME COURT OF INDIA, CIVIL APPELLATE JURISDICTION, CIVIL APPEAL NO. 9693 OF 2013
{To conclude, the impugned judgment of the High Court dated 17th July, 2013 is not sustainable and deserves to be set aside and the disciplinary authority may proceed and conclude
the pending disciplinary proceedings expeditiously and take a final decision in accordance with the scheme of Rules, 1978 read with subsection (6) of Section 4 of the Payment of Gratuity Act,
1972.Hence, you can claim interest for the period of delay.02-Oct-2018}
Regards
From India, Mumbai
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In the instant case no official can be held responsible for additional financial burden for payment of interest paid for delayed payment of gratuity of employee under trial for misconduct vice versa whether to grant monetary to the officials succeed in forfeiting the gratuity of the employee for his alleged misconduct.
A case detail is given below to refer
IN THE SUPREME COURT OF INDIA, CIVIL APPELLATE JURISDICTION, CIVIL APPEAL NO. 9693 OF 2013
{To conclude, the impugned judgment of the High Court dated 17th July, 2013 is not sustainable and deserves to be set aside and the disciplinary authority may proceed and conclude
the pending disciplinary proceedings expeditiously and take a final decision in accordance with the scheme of Rules, 1978 read with subsection (6) of Section 4 of the Payment of Gratuity Act,
1972.Hence, you can claim interest for the period of delay.02-Oct-2018}
Regards
From India, Mumbai
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India Inc Polices Employee Theft.pdf
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