Hi Everyone, I worked in a private BPO company for 6 years and 8 months. I am eligible for gratuity and I served a proper notice period of 2 months. After relieving from the service, my company refuses to pay gratuity. They do post audits on the projects I worked on and claimed that I am responsible for the errors done by my team members during the service.
They are claiming that being the manager, I am responsible for the losses created and my gratuity is forfeited. Is that correct? A gratuity can be forfeited when the employee is responsible for the losses created to the employer and the employee was terminated for the same. I was not terminated and properly relieved from the service. Can they forfeit my gratuity by doing post audit?
Please advise.
From India, Chennai
They are claiming that being the manager, I am responsible for the losses created and my gratuity is forfeited. Is that correct? A gratuity can be forfeited when the employee is responsible for the losses created to the employer and the employee was terminated for the same. I was not terminated and properly relieved from the service. Can they forfeit my gratuity by doing post audit?
Please advise.
From India, Chennai
Hi,
As per Law
any employer can forfeit the gratuity of an employee if the employee is terminated for any act or omission or negligence causing any damage or loss to the property belonging to the employer. The forfeiture can only be to the extent of the damage or loss caused, and not beyond that.
So does your employer have any proof that loss is incurred due to your negligence of work ? You can request for Gratuity in writing with your employer and incase of no proper response you may appeal before the Assistant Commissioner of Labour of your jurisdiction.
From India, Madras
951As per Law
any employer can forfeit the gratuity of an employee if the employee is terminated for any act or omission or negligence causing any damage or loss to the property belonging to the employer. The forfeiture can only be to the extent of the damage or loss caused, and not beyond that.
So does your employer have any proof that loss is incurred due to your negligence of work ? You can request for Gratuity in writing with your employer and incase of no proper response you may appeal before the Assistant Commissioner of Labour of your jurisdiction.
From India, Madras
Yes Sir,
The company is showing the proofs done in the projects which my team handled. Though it was not directly done by me, since I am the manager I should pay for the losses incurred by my team member.
My Question is can they do post audit after I relieve and blame me? Or the gratuity can be forfeit only when I am being terminated for the losses incurred?
From India, Chennai
The company is showing the proofs done in the projects which my team handled. Though it was not directly done by me, since I am the manager I should pay for the losses incurred by my team member.
My Question is can they do post audit after I relieve and blame me? Or the gratuity can be forfeit only when I am being terminated for the losses incurred?
From India, Chennai
Hi, Yes post audit after relieving or error when found after relieving is normal. It depends on the gravity of error /volume of loss to the employer ....
From India, Madras
From India, Madras
I will completely disagree with the contention of Mr. VM.
Gratuity is a protected payment.
It can not be forfeited or adjusted against any dues to the company.
The only case where gratuity can be refused is in cases of Moral Triplitude. (sorry don't recall the exact correct spelling), which is a specific type of fraudulent activity. In all other cases, the gratuity has to be paid.
You can approach the Authority Under Gratuity Act (usually the Chief Labour Commissioner of your district) and file a compliant. The officer will ensure that you are given gratuity.
The so called losses, if it is your responsibility, they will need to file a separate civil suite against you for recovery.
From India, Mumbai
Gratuity is a protected payment.
It can not be forfeited or adjusted against any dues to the company.
The only case where gratuity can be refused is in cases of Moral Triplitude. (sorry don't recall the exact correct spelling), which is a specific type of fraudulent activity. In all other cases, the gratuity has to be paid.
You can approach the Authority Under Gratuity Act (usually the Chief Labour Commissioner of your district) and file a compliant. The officer will ensure that you are given gratuity.
The so called losses, if it is your responsibility, they will need to file a separate civil suite against you for recovery.
From India, Mumbai
Gratuity of an employee could be forfeited only in terms of the provisions of Section 4(6) of the Payment of Gratuity Act,1973-
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five
years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
.................................................. .................................................. .............
.................................................. .................................................. .............
(6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any
act, wilful omission or negligence causing any damage or loss to, or
destruction of, property belonging to the employer, shall be forfeited to the
extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]
-
(i) 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.
The provisions do not provide for forfeiture of gratuity in a case where the employee has left service. The alleged loss, if at all attributable to the employee, could only be recovered only through a civil action.
The querist may take up the issue with the Controlling Authority.
From India, Kochi
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five
years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
.................................................. .................................................. .............
.................................................. .................................................. .............
(6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any
act, wilful omission or negligence causing any damage or loss to, or
destruction of, property belonging to the employer, shall be forfeited to the
extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]
-
(i) 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.
The provisions do not provide for forfeiture of gratuity in a case where the employee has left service. The alleged loss, if at all attributable to the employee, could only be recovered only through a civil action.
The querist may take up the issue with the Controlling Authority.
From India, Kochi
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