Hi all,
I would like to gain some views from my HR colleagues on the following:
1. Is an organization liable to pay gratuity to an employee being terminated for fraud in the organization, assuming the employee has completed the required period?
2. If yes, is the organization liable to pay the full amount assuming the employee has completed the required time period?
Please comment on any other related threads.
Regards,
Supriya
From India
Acknowledge(0)
Amend(0)
I would like to gain some views from my HR colleagues on the following:
1. Is an organization liable to pay gratuity to an employee being terminated for fraud in the organization, assuming the employee has completed the required period?
2. If yes, is the organization liable to pay the full amount assuming the employee has completed the required time period?
Please comment on any other related threads.
Regards,
Supriya
From India
Acknowledge(0)Amend(0)
An employee terminated for fraud is entitled to receive gratuity if he is qualified to receive it based on his service. Section 4(6) provides that gratuity can only be forfeited in cases where the employee has been dismissed from service on charges involving moral turpitude. Similarly, the forfeiture of gratuity can occur if the employer has incurred any loss due to negligence or willful omission on the part of the employee, causing damage to the employer's properties.
Therefore, if you have conducted an inquiry before terminating the employee on fraud charges and have determined the amount lost by the company, that amount shall be recovered from the gratuity. Before deducting any amount from the payable gratuity, ensure that you terminated the employee after conducting a proper inquiry following the principles of natural justice.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4479Therefore, if you have conducted an inquiry before terminating the employee on fraud charges and have determined the amount lost by the company, that amount shall be recovered from the gratuity. Before deducting any amount from the payable gratuity, ensure that you terminated the employee after conducting a proper inquiry following the principles of natural justice.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Mr. Madhu T.K.
The information is not advice to management; I am expressing my status/honest opinion.
I was working as Assistant General Manager (Engineering & Project) since 2007 in a public sector company. In the mid of project management, I was transferred to marketing as Assistant General Manager - Pharma (Medicine) Marketing. I was made to work as a manager, handling job responsibilities for one year (demoted post without charge sheet & enquiry). Later, management forced me to work as a Medical Representative (lowest demoted post in the marketing department without any inquiry) for another year. In daily reports, I kept asking for GM-Marketing and lower staff, also company infrastructure, but management replied that no support would be given.
After 2 years of mental and physical harassment (in my opinion) and salary reduction due to Loss of Pay (LOP) on account of non-receipt of daily work reports by post for many months without valid reasons, it seems that daily reports sent via personal ID emails were not considered as legal documents for attendance. Initially, when I was in the Manager post, many months of mail reports were recognized as attendance.
On March 16, an officer came to cross-check my work in the NE region of India and tried to find mistakes to charge sheet me, threatening to file a wrong report. I denied and vacated the place by sending an email for an official reason (management did not provide GM-Marketing position status and supporting infrastructure).
Since last March 16, I have not reported to duty despite many reminder letters from the company. As I was mentally depressed and threatened by the reporting officer that I would be demoted further to the lowest post at the age of 52, GM-Marketing has stated in writing that any kind of leaves will not be sanctioned, even earlier sick leaves were not sanctioned.
In January 16, the company's HRD applied the appointment letter clause: "Any employee absent from duty without senior approval for 10 days is considered as self-termination." Consequently, the company settled my dues the way they wanted. That is, the salary for March 16 was paid in January 16, and the gratuity amount check was received late. The company made this decision without conducting an inquiry/charge sheet/suspension, merely based on the clause in the appointment letter, and settled my account (I signed the appointment letter as a token of receipt, no legal bond was signed).
I am now in the private job market as an engineer with 25 years of experience and 2 years of experience in pharmaceutical medicine marketing. However, the industry is not accepting me as an engineer or an experienced marketing candidate.
This company has ruined my next 8 years of career. Now, in the private job market, I am neither considered an experienced engineer nor a hard-core marketing person.
Note: For the last 8 years, I have a clean record in the company's books, but I was due for promotion.
To Whom It May Concern,
The above is true to the best of my knowledge.
I am not promoting either good or bad about the company; as a citizen, I am simply expressing my views/opinions.
The above information is not legally binding as the company is a public sector unit under the Ministry of Chemicals & Fertilizers. They may be right in making decisions as per rules, and I am not aware of the company's standing orders/CDA rule book.
The contents do not concern anyone; they may be ignored/deleted.
Mr. Madhu, this type of termination by the company without issuing a termination letter in writing and just removing the employee from the role, can you please advise relief.
From India, Bangalore
Acknowledge(0)Amend(0)
The information is not advice to management; I am expressing my status/honest opinion.
I was working as Assistant General Manager (Engineering & Project) since 2007 in a public sector company. In the mid of project management, I was transferred to marketing as Assistant General Manager - Pharma (Medicine) Marketing. I was made to work as a manager, handling job responsibilities for one year (demoted post without charge sheet & enquiry). Later, management forced me to work as a Medical Representative (lowest demoted post in the marketing department without any inquiry) for another year. In daily reports, I kept asking for GM-Marketing and lower staff, also company infrastructure, but management replied that no support would be given.
After 2 years of mental and physical harassment (in my opinion) and salary reduction due to Loss of Pay (LOP) on account of non-receipt of daily work reports by post for many months without valid reasons, it seems that daily reports sent via personal ID emails were not considered as legal documents for attendance. Initially, when I was in the Manager post, many months of mail reports were recognized as attendance.
On March 16, an officer came to cross-check my work in the NE region of India and tried to find mistakes to charge sheet me, threatening to file a wrong report. I denied and vacated the place by sending an email for an official reason (management did not provide GM-Marketing position status and supporting infrastructure).
Since last March 16, I have not reported to duty despite many reminder letters from the company. As I was mentally depressed and threatened by the reporting officer that I would be demoted further to the lowest post at the age of 52, GM-Marketing has stated in writing that any kind of leaves will not be sanctioned, even earlier sick leaves were not sanctioned.
In January 16, the company's HRD applied the appointment letter clause: "Any employee absent from duty without senior approval for 10 days is considered as self-termination." Consequently, the company settled my dues the way they wanted. That is, the salary for March 16 was paid in January 16, and the gratuity amount check was received late. The company made this decision without conducting an inquiry/charge sheet/suspension, merely based on the clause in the appointment letter, and settled my account (I signed the appointment letter as a token of receipt, no legal bond was signed).
I am now in the private job market as an engineer with 25 years of experience and 2 years of experience in pharmaceutical medicine marketing. However, the industry is not accepting me as an engineer or an experienced marketing candidate.
This company has ruined my next 8 years of career. Now, in the private job market, I am neither considered an experienced engineer nor a hard-core marketing person.
Note: For the last 8 years, I have a clean record in the company's books, but I was due for promotion.
To Whom It May Concern,
The above is true to the best of my knowledge.
I am not promoting either good or bad about the company; as a citizen, I am simply expressing my views/opinions.
The above information is not legally binding as the company is a public sector unit under the Ministry of Chemicals & Fertilizers. They may be right in making decisions as per rules, and I am not aware of the company's standing orders/CDA rule book.
The contents do not concern anyone; they may be ignored/deleted.
Mr. Madhu, this type of termination by the company without issuing a termination letter in writing and just removing the employee from the role, can you please advise relief.
From India, Bangalore
Acknowledge(0)Amend(0)
I don't think that your grievance has anything to do with the thread we are following here, i.e., the payment of gratuity to an employee terminated. You have received gratuity and a full and final settlement amount. Then the issue is whether the termination was illegal or not. In the case of managers and persons having managerial powers, the only remedy available is to file a civil suit, and they cannot get the protection of the Industrial Disputes Act.
In your case, I am sure that there should be proper records and evidence against you, and the management should have used that record to demote you from the post of GM or transfer you to Marketing, etc. Upon termination itself, you should have questioned it and obtained a stay for the same. Now, you have accepted the F&F, and everything is closed. At the same time, at the time of your termination, if you were designated as a Sales Representative or something like that and if you were without any reportees under you, then you still have a chance of getting protection under the Sales Promotion Employees (Conditions of Service) Act. According to this act, a sales promotion employee cannot be terminated without being given an opportunity to be heard.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
In your case, I am sure that there should be proper records and evidence against you, and the management should have used that record to demote you from the post of GM or transfer you to Marketing, etc. Upon termination itself, you should have questioned it and obtained a stay for the same. Now, you have accepted the F&F, and everything is closed. At the same time, at the time of your termination, if you were designated as a Sales Representative or something like that and if you were without any reportees under you, then you still have a chance of getting protection under the Sales Promotion Employees (Conditions of Service) Act. According to this act, a sales promotion employee cannot be terminated without being given an opportunity to be heard.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Sir,
Kindly note the following points.
1. My salary slips are marked as GM-PHARMA MARKETING. Even though they have made me work alone as MR, many reminders were sent asking for staff and infrastructure, but were refused in a letter. Notice of demotion has been issued for the last 8 years. HRD has conducted only one appraisal, at the time of service confirmation, and after that no appraisals have been conducted, only regular annual increments were given. Up to today, I have cleared records in books, but this Full and Final without enquiry is an error. Even if internal records are made with HOD, it is without my knowledge and signature.
2. I have not been given any official termination letter, but on self-termination, clauses for Gratuity have been paid. Since self-termination clauses were applied after 8 months, my economic conditions led to encashment. Due to the absence of a formal termination letter along with a relieving letter or service letter, it implies a malafide transfer and harassment. Please find the attachment for further discussion and advice.
Thank you.
From India, Bangalore
Acknowledge(0)Amend(0)
Kindly note the following points.
1. My salary slips are marked as GM-PHARMA MARKETING. Even though they have made me work alone as MR, many reminders were sent asking for staff and infrastructure, but were refused in a letter. Notice of demotion has been issued for the last 8 years. HRD has conducted only one appraisal, at the time of service confirmation, and after that no appraisals have been conducted, only regular annual increments were given. Up to today, I have cleared records in books, but this Full and Final without enquiry is an error. Even if internal records are made with HOD, it is without my knowledge and signature.
2. I have not been given any official termination letter, but on self-termination, clauses for Gratuity have been paid. Since self-termination clauses were applied after 8 months, my economic conditions led to encashment. Due to the absence of a formal termination letter along with a relieving letter or service letter, it implies a malafide transfer and harassment. Please find the attachment for further discussion and advice.
Thank you.
From India, Bangalore
Acknowledge(0)Amend(0)
You have been working as GM Marketing. To which post and with what functions were you demoted?
It has been quite a long 8 years that you have been in the present position, and that also without any letter. That means you are GM only.
The ID Act is meant for workers and not for managers.
In the case of workers, even termination following the clause in the appointment order that an employee absenting without intimation shall be terminated without notice will not stand.
In the case of Managers, the law presumes that they have the freedom of expressing their grievances before the Management, and there is no need for any further opportunity before any action is taken.
In the case of managers, it is presumed that they have in mind what their duties and responsibilities are, and they should be concerned about what will happen to the business if they absent themselves for 8 days (say) continuously without intimation. Hence, termination without holding an inquiry would not be required.
Still, on termination, you should have been served a notice of termination.
Since you have not returned the gratuity cheque, the termination of the contract of employment, based on which only gratuity will be paid, is taken for granted.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
It has been quite a long 8 years that you have been in the present position, and that also without any letter. That means you are GM only.
The ID Act is meant for workers and not for managers.
In the case of workers, even termination following the clause in the appointment order that an employee absenting without intimation shall be terminated without notice will not stand.
In the case of Managers, the law presumes that they have the freedom of expressing their grievances before the Management, and there is no need for any further opportunity before any action is taken.
In the case of managers, it is presumed that they have in mind what their duties and responsibilities are, and they should be concerned about what will happen to the business if they absent themselves for 8 days (say) continuously without intimation. Hence, termination without holding an inquiry would not be required.
Still, on termination, you should have been served a notice of termination.
Since you have not returned the gratuity cheque, the termination of the contract of employment, based on which only gratuity will be paid, is taken for granted.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.