Dear Fraternity Members ,
One of our Senior team member has completed his notice period but not completed the knowledge transfer and asset handover
Can we hold his Gratuity unless he completes above formalities or it can cause legal hassles
Thanks in advance
From India, Mumbai
2One of our Senior team member has completed his notice period but not completed the knowledge transfer and asset handover
Can we hold his Gratuity unless he completes above formalities or it can cause legal hassles
Thanks in advance
From India, Mumbai
No, you cannot hold Gratuity. You only have the option to hold his service certificate and relieving letter. Regarding asset, you can deduct the value of the asset as per accounts books from his full and final settlement, provided you have proof of his taking possession of the asset.
Regards
MVK
From India, Madras
Regards
MVK
From India, Madras
The provisions of the Gratuity Act speaks, that gratuity can be withheld in case of damages or loss so caused or destruction of property belonging to the employer or otherwise where the termination of service is due to riotous or disorderly conduct or due to criminal case involving moral turpitude” also held by the Court.
On the ground you can settle the part of gratuity and hold the amount equal to cost of assets hold by the employee. Further, the gratuity is paid on sucessful exit but in your case the employee has not completed his exit formalities. Therefore, the employee can't claim his gratuity legally or there is no violations on part of employer. In this circumstances, the employer can issue a simple letter that F&F only can be done by the completion exit rules.
From India, Mumbai
On the ground you can settle the part of gratuity and hold the amount equal to cost of assets hold by the employee. Further, the gratuity is paid on sucessful exit but in your case the employee has not completed his exit formalities. Therefore, the employee can't claim his gratuity legally or there is no violations on part of employer. In this circumstances, the employer can issue a simple letter that F&F only can be done by the completion exit rules.
From India, Mumbai
@prabhar,
I think the fact that he has completed notice period and then left is “exit” under the law
Failure to complete handover is no ground for withholding gratuity
If the employee files a complaint with labour commissioner, company will be liable for penalty and interest
From India, Mumbai
I think the fact that he has completed notice period and then left is “exit” under the law
Failure to complete handover is no ground for withholding gratuity
If the employee files a complaint with labour commissioner, company will be liable for penalty and interest
From India, Mumbai
@
The complaint of the employee with the authority would stand futile because the employee is at fault for not completing the exit formalities. In general the accounts depart prepares the payment after having the 'No Dues Clearance Certificate', or other wise kept on pending till all the desired documents recived.
From India, Mumbai
The complaint of the employee with the authority would stand futile because the employee is at fault for not completing the exit formalities. In general the accounts depart prepares the payment after having the 'No Dues Clearance Certificate', or other wise kept on pending till all the desired documents recived.
From India, Mumbai
Dear Prabat
Please read the act again.
The act says it is payable on termination of employment (which means it is payable when the person is no longer working, whether due to resignation or otherwise). There is nothing in the act or definitions that says the employee needs to complete his exit formalities.
Therefore, he is very much eligible to claim his Gratuity, irrespective of his exit formality status.
The extract from the act is as below :
Section 4 : Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five
years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
From India, Mumbai
Please read the act again.
The act says it is payable on termination of employment (which means it is payable when the person is no longer working, whether due to resignation or otherwise). There is nothing in the act or definitions that says the employee needs to complete his exit formalities.
Therefore, he is very much eligible to claim his Gratuity, irrespective of his exit formality status.
The extract from the act is as below :
Section 4 : Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five
years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
From India, Mumbai
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc