if the employee committed any crime like misappropriation, theft, injuring other employee or has caused to disrepute of employer then forfeiture of gratuity is justified otherwise not.
From India, Mumbai
121From India, Mumbai
Dear sundararamanh,
No, Employer can not deny the Gratuity Payment of an employee who has completed 5 years of continuous service. Is there any reason or misapprriation or theft committed by employee? If no, you will have to pay Gratuity as per the formula given under the Act. If you do not pay Gratuity, Employee has an option to lodge a compalint to Dy. Labour Commissioner, who is the authority under the Act.
If you are interested in delaying the payment due to non availability of Cash flow, you may deny the Gratuity and let the employee lodge the Compalint to the Authority. Hearing with the authority will take some time and in the meantime you can arrange for the money or give a committment of payment in presence of Authority. However, some day you have to make the payment.
Thanks & regards
Ravindra Chaubal
Sr. Manager
From India, Delhi
No, Employer can not deny the Gratuity Payment of an employee who has completed 5 years of continuous service. Is there any reason or misapprriation or theft committed by employee? If no, you will have to pay Gratuity as per the formula given under the Act. If you do not pay Gratuity, Employee has an option to lodge a compalint to Dy. Labour Commissioner, who is the authority under the Act.
If you are interested in delaying the payment due to non availability of Cash flow, you may deny the Gratuity and let the employee lodge the Compalint to the Authority. Hearing with the authority will take some time and in the meantime you can arrange for the money or give a committment of payment in presence of Authority. However, some day you have to make the payment.
Thanks & regards
Ravindra Chaubal
Sr. Manager
From India, Delhi
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc