I have gone through many threads on Gratuity benefits and the rules therein. Thank you all for the info.
Here's a case in point:
One has worked in a comany for 8 years and is highly decorated. There's a fallout with leadership. He resigns, or is forced to resign. Is there a way the company creates the "moral turpitude" situation just to wriggle out of the gratuity payments? I presume the payout will be substantial (close to 2 lakhs). In my mind proving "moral turpitude" in hindsight could be open to long legal wrangles. Is the company liable to "show" how they have come to that decision?
From India, Mumbai
139Here's a case in point:
One has worked in a comany for 8 years and is highly decorated. There's a fallout with leadership. He resigns, or is forced to resign. Is there a way the company creates the "moral turpitude" situation just to wriggle out of the gratuity payments? I presume the payout will be substantial (close to 2 lakhs). In my mind proving "moral turpitude" in hindsight could be open to long legal wrangles. Is the company liable to "show" how they have come to that decision?
From India, Mumbai
Yes, in my opinion the Company would have to prove to the Court that there was "moral turpitude" due to which gratuity is being denied. In most of the cases it is very difficult to prove and the case would be decided in favour of the employee.
However, it would be advisable for the Company to pay the gratuity in proper manner as in such a case, they would have to pay the amount after a long legal battle that would entail them a higher cost in terms of time, manpower and money in addition to the due amount as well as interest and penalty thereon.
Thanks,
Avika
From India, New Delhi
However, it would be advisable for the Company to pay the gratuity in proper manner as in such a case, they would have to pay the amount after a long legal battle that would entail them a higher cost in terms of time, manpower and money in addition to the due amount as well as interest and penalty thereon.
Thanks,
Avika
From India, New Delhi
Dear
Please see section 4(6)(b)(ii) of the Payment of Gratuity Act. According to this section gratuity could be forfeited if the employee was terminated for any act which constitutes an offence involving moral turpitude. In the case cited by you, the employee has not been terminated, but had resigned. I hope the resignation had been accepted. As the termination of the services of the employee is due to resignation and not due to any act involving moral turpitude, gratuity cannot be forfeited under the Payment of Gratuity Act in this case. Moreover, after the termination of the services due to an act which constitutes an offence involving moral turpitude, the employer has to issue a separate show cause notice asking the employee to show cause as to why the gratuity payable to him should not be forfeited. The employer has to consider the explanation offered by the terminated employee and then pass an order forfeiting gratuity.
With regards
From India, Madras
Please see section 4(6)(b)(ii) of the Payment of Gratuity Act. According to this section gratuity could be forfeited if the employee was terminated for any act which constitutes an offence involving moral turpitude. In the case cited by you, the employee has not been terminated, but had resigned. I hope the resignation had been accepted. As the termination of the services of the employee is due to resignation and not due to any act involving moral turpitude, gratuity cannot be forfeited under the Payment of Gratuity Act in this case. Moreover, after the termination of the services due to an act which constitutes an offence involving moral turpitude, the employer has to issue a separate show cause notice asking the employee to show cause as to why the gratuity payable to him should not be forfeited. The employer has to consider the explanation offered by the terminated employee and then pass an order forfeiting gratuity.
With regards
From India, Madras
As per the provisions of the Payment of Gratuity Act,the Gratuity payable to an employee can be forfeited inter-alia if his service was terminated on the ground of moral turpitude.Since, in the instant case, the employee resigned and his service was not terminated for committing moral turpitude,his employer is legally bound to pay him the gratuity.If not paid, then the employee can lodge a complaint before the concerned ALC & Contolling Authority for appropriate relief.It is more economical and less time consuming.If you straight away go to the court,it will dismiss it with the advice to file it before the appropriate forum.
A.K.Maitra,M.Com;LL.B;A.C.A;A.C.S;M.I.M.A
Retd.Company Secy.& G.M.(Law)
National Fertilizers Ltd.
(A Mini-Ratna Central P.S.U.)
From India, Delhi
A.K.Maitra,M.Com;LL.B;A.C.A;A.C.S;M.I.M.A
Retd.Company Secy.& G.M.(Law)
National Fertilizers Ltd.
(A Mini-Ratna Central P.S.U.)
From India, Delhi
M/s Harikrishnan &Maitra are absolutely right.Having accepted the resignation the employer cannot raise the issue of misconduct.If there was a misconduct of moral turpitude he should have legally terminated the employee .In this case if gratuity is denied employee can approach the Controlling Authority under the Act.
varghese mathew.
Labourlaw/HR advisor
09961266966
From India, Thiruvananthapuram
varghese mathew.
Labourlaw/HR advisor
09961266966
From India, Thiruvananthapuram
M/s Varghese, Maitra, Harikrishnan and Avika.. thank you so much for your detailed and able responses. I hope we do not get to that day on this particular, but if needed I would want to get in touch with you for further advice. Look forward to your advice then too..
Best regards...
From India, Mumbai
Best regards...
From India, Mumbai
With specific reference to this part, the company in question has a habit of not responding to resignation emails, or at best send something like "We will discuss this..."
I wanted to understand, does the date of resignation stand from the date it has been sent or the date it has been accepted? What happens is the line authority/HR fails to respond?
From India, Mumbai
I wanted to understand, does the date of resignation stand from the date it has been sent or the date it has been accepted? What happens is the line authority/HR fails to respond?
From India, Mumbai
When an emloyee sends the
resignation, first of all the out standing dues to be woeked out and the notice pay in lieu of notice etc. is to be adjusted. If every thing is OK then the resignation will be aaccepted \'from the date of resignation from the date
it has been sent\' and send
the letter accordingly to the employee, otherwise the
course of action and acceptance of resignation
differs.
Eswararao Ivaturi.
From United States, Cupertino
resignation, first of all the out standing dues to be woeked out and the notice pay in lieu of notice etc. is to be adjusted. If every thing is OK then the resignation will be aaccepted \'from the date of resignation from the date
it has been sent\' and send
the letter accordingly to the employee, otherwise the
course of action and acceptance of resignation
differs.
Eswararao Ivaturi.
From United States, Cupertino
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