Discuss in detail when an employer can forfeit the gratuity of the employee.

Forfeiture of Gratuity (Section 4 (6)] : Under the following circumstances gratuity payable to an employee may be forfeited.

The gratuity of employee whose services have been terminated for any act, fulfill omission or negligence causing any damage, loss or destruction of employer’s property, shall be forfeited to the extent of the damage or loss so caused. Mere dismissal from service does not entitle to an employee right to gratuity.

The gratuity payable to an employee may be wholly or partially forfeited— (a) if the services of such employee have been terminated for his riotous or disorderly conduct or any ether act of violence on his part; or (b) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided such offence is committed by him in the course of employment.

Theft by an employee during the course of his employment is an offence involving moral turpitude and gratuity is liable to be forfeited in such case. In order to forfeit the gratuity of an employee, there must be .a termination order containing the charges as established to the effect that the employee was guilty of any of aforesaid misconducts.

Any decision to forfeit the gratuity under thus section can be taken only after affording opportunity of being heared to the employee concerned [Bharat Gold Mines Ltd. v. Regional Labor Commissioner]

Tags: B.Com

Compare items
  • Total (0)