I have gone through the posts of learned seniors who have all suggested solutions that are relevant. I would like to add that gratuity is a very much protected retiral benefit like P.F. and is considered as the right vested by the Act in the employees to the property held in trust for them by the employer but not a bounty to be given out of grace. Therefore, the employer cannot adjust any dues of the employer or any loss to him against gratuity except in the way permissible under the Act.
The queriest has only said that the employee is not approaching him for gratuity. He has not stated what efforts he made to trace him. The employer cannot unilaterally jump to a finding that the employee is not approaching or contacting him or not traceable without actually making efforts to trace him. This may not absolve him of his liability to pay interest for the delay in payment, if the employee tomorrow proves that he is very well traceable and the employer made only a lukewarm effort. Therefore, the queriest has to first make all efforts to trace him and keep a record of all those efforts. Thereafter, he can act on the suggestions given by other senior members like BM Kalsi, KK Nair, Kprasoon, Umakanthan, and others.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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1979The queriest has only said that the employee is not approaching him for gratuity. He has not stated what efforts he made to trace him. The employer cannot unilaterally jump to a finding that the employee is not approaching or contacting him or not traceable without actually making efforts to trace him. This may not absolve him of his liability to pay interest for the delay in payment, if the employee tomorrow proves that he is very well traceable and the employer made only a lukewarm effort. Therefore, the queriest has to first make all efforts to trace him and keep a record of all those efforts. Thereafter, he can act on the suggestions given by other senior members like BM Kalsi, KK Nair, Kprasoon, Umakanthan, and others.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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The depositing of gratuity with the CA is permitted only if there is a dispute on the amount, admissibility, or person entitled to receive the gratuity, or when the nominee or heirs are minor. Here, there are no such conditions. If the employee is outside the purview of the LW Act, you cannot deposit it in LWF.
Make all attempts with records to trace the employee, like sending letters or notices in dailies. The CA shall be informed of all these attempts to prove that the delay is not willful.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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Make all attempts with records to trace the employee, like sending letters or notices in dailies. The CA shall be informed of all these attempts to prove that the delay is not willful.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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Notice in news papers ? The cost of that would be higher than the gratuity payable perhaps ..... Is that necessary ?
From India, Mumbai
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From India, Mumbai
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Saswata Banerjee,
If the cost of notice is more than the cost of interest, prosecution, penalty, etc., and you are prepared to bear it, you can wait until the employee shows his face. If an employer is ready to face penal action, he can violate all laws.
Varghese Mathew
From India, Thiruvananthapuram
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If the cost of notice is more than the cost of interest, prosecution, penalty, etc., and you are prepared to bear it, you can wait until the employee shows his face. If an employer is ready to face penal action, he can violate all laws.
Varghese Mathew
From India, Thiruvananthapuram
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Dear All,
Sharing the latest judgment of Andhra Pradesh High Court related to Forfeiture of Gratuity. The Hon. court ruled that forfeiture of gratuity is to be effected only by making compliance of conditions as provided under Section 4(6) of the Payment of Gratuity Act, failing which the forfeiture will be illegal and liable to be quashed by the court. The court also ruled that forfeiture of gratuity must have a DIRECT CO-RELATION to the damage or loss caused by the employee to the employer.
-Kamal P
From India, Pune
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Sharing the latest judgment of Andhra Pradesh High Court related to Forfeiture of Gratuity. The Hon. court ruled that forfeiture of gratuity is to be effected only by making compliance of conditions as provided under Section 4(6) of the Payment of Gratuity Act, failing which the forfeiture will be illegal and liable to be quashed by the court. The court also ruled that forfeiture of gratuity must have a DIRECT CO-RELATION to the damage or loss caused by the employee to the employer.
-Kamal P
From India, Pune
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Hello everyone. I would like to seek advice on a practical issue. An employee joined the establishment in 2006 and worked until 2009. In 2009, he was absconded, and after a reminder letter and formalities, he was terminated. In 2013, he claimed for the job in the Labour court, and based on the advice from the Labour office, the company rehired him in 2015. The case continued for 2 years, but the Labour court didn't advise the company to make any payment for the period from 2013-2015.
After the Labour court advised rehiring the employee in 2015, the company did so and employed him in one of its units under the same group. The employee worked there for 2 months and then absconded. The company followed the same formalities as for the previous absconding case.
Now, the employee has launched a case in the labour court, demanding gratuity from 2006 to 2015. Is he legally eligible to receive the gratuity or not? Kindly advise.
From India, Dhanbad
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After the Labour court advised rehiring the employee in 2015, the company did so and employed him in one of its units under the same group. The employee worked there for 2 months and then absconded. The company followed the same formalities as for the previous absconding case.
Now, the employee has launched a case in the labour court, demanding gratuity from 2006 to 2015. Is he legally eligible to receive the gratuity or not? Kindly advise.
From India, Dhanbad
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