Dear Seniors,
If an employee is terminated after a proper inquiry and charge sheet for absenteeism, can the company hold his gratuity? I have read about theft, etc., but wanted to know specifically about termination for absenteeism.
From India, Mumbai
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10If an employee is terminated after a proper inquiry and charge sheet for absenteeism, can the company hold his gratuity? I have read about theft, etc., but wanted to know specifically about termination for absenteeism.
From India, Mumbai
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The gratuity payable to an employee may also be wholly or partially forfeited if:
(i) 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) the services of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
As held in the case of Bharat Gold Mines v Regional Labor Commissioner, any decision under the (i) and (ii) cannot be taken unless the employee has been given a fair hearing from the employer. Also, theft is an offense involving moral turpitude.
Read more about the Payment of Gratuity Act, Rules, Forms, Returns & All Other Information [here](http://www.shramsamadhan.com/p/payment-of-gratuity-act-rules.html)
From India, Kolkata
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(i) 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) the services of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
As held in the case of Bharat Gold Mines v Regional Labor Commissioner, any decision under the (i) and (ii) cannot be taken unless the employee has been given a fair hearing from the employer. Also, theft is an offense involving moral turpitude.
Read more about the Payment of Gratuity Act, Rules, Forms, Returns & All Other Information [here](http://www.shramsamadhan.com/p/payment-of-gratuity-act-rules.html)
From India, Kolkata
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Dear Sir, I have read this but it says about theft, violence or such big issues. I want to know for absenteeism particular.
From India, Mumbai
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From India, Mumbai
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Prolonged absenteeism that is so rash as to constitute a breach of the employment contract can be covered under "disorderly conduct." However, this is subjective and there is no benchmark. Please review the case study in the link.
From India, Kolkata
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From India, Kolkata
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But if you ask me I do not think absenteeism is a valid ground if you have reasonable explanation for that.
From India, Kolkata
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From India, Kolkata
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This is a complex issue but I do not think gratuity can be withhold under the law only for misconduct of habitual absenteeism.
From India, Kolkata
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From India, Kolkata
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Dear Mr. Gokul,
Gratuity is a goodwill payment for long service by employees. It is given on confirmation of accumulated goodwill (not in accounting terms) during the service period. Companies are free to deduct a part or full Gratuity (this has to be a judicious decision) payable if the "Goodwill Thread" is broken.
However, since the payment of Gratuity is an established practice, it is advisable to support the organizational decision of non-payment (in part or full) of Gratuity with a letter issued to the affected employee, providing details of any "punishable offence" committed by them and the deduction made from the Gratuity thereafter.
Absenteeism is not a punishable crime for which deductions can be made from Gratuity.
Regards,
From India, Pune
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Gratuity is a goodwill payment for long service by employees. It is given on confirmation of accumulated goodwill (not in accounting terms) during the service period. Companies are free to deduct a part or full Gratuity (this has to be a judicious decision) payable if the "Goodwill Thread" is broken.
However, since the payment of Gratuity is an established practice, it is advisable to support the organizational decision of non-payment (in part or full) of Gratuity with a letter issued to the affected employee, providing details of any "punishable offence" committed by them and the deduction made from the Gratuity thereafter.
Absenteeism is not a punishable crime for which deductions can be made from Gratuity.
Regards,
From India, Pune
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Thanks to all the seniors who helped me in resolving my doubt.With your advice I reached to a concluding that absenteeism is not a crime hence we cannot hold the gratuity. Thank you all.
From India, Mumbai
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From India, Mumbai
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Gratuity is not a goodwill payment. It is a right. Absenteeism is not a reason to forfeit it. Absenteeism, which is treated as a break in service, can be deducted from total continuous service as per Section 2A of the Payment of Gratuity Act.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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