We have terminated an employee for "instigating other employees not to come for Overtime" ( there was a clause as agreed by the union in 18(1)settlement to come for OT during urgent production requirement) and because of which there was a loss of Rs 20 lakh (production loss), also the company could not deliver the product as committed to the customer. For the above-stated reason can we forfeit his Gratuity payment under the ambit of sec 4(6)(b) of Gratuity act 1972.
Pls advise.
From India, Madras
3Pls advise.
From India, Madras
Forfeiture of Gratuity: [Section 4(6)]
1. Forfeiture to the extent of the damage/ loss: If the services of an employee have been terminated for-
(i) any act,
(ii) willful omission, or
(iii) negligence
causing any damage or loss to, or destruction of, property belonging to the employer- there the gratuity shall be forfeited to the extent of the damage or loss so caused;
2. Wholly or partially forfeiture of gratuity: (i) where if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude.
Provided that such offence is committed by him in the course of his employment, there the gratuity payable to the employee may be wholly or partially forfeited.
Have you conducted any domestic enquiry which has found him guilty of instigation?
From India, Pune
1. Forfeiture to the extent of the damage/ loss: If the services of an employee have been terminated for-
(i) any act,
(ii) willful omission, or
(iii) negligence
causing any damage or loss to, or destruction of, property belonging to the employer- there the gratuity shall be forfeited to the extent of the damage or loss so caused;
2. Wholly or partially forfeiture of gratuity: (i) where if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude.
Provided that such offence is committed by him in the course of his employment, there the gratuity payable to the employee may be wholly or partially forfeited.
Have you conducted any domestic enquiry which has found him guilty of instigation?
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc