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The provisions of payment of gratuity act will override the other statutory rules and regulations of the company regarding gratuity and pension. - The Payment of Gratuity Act, 1972

Withholding of gratuity payable under the Payment of Gratuity Act, 1972, to an employee, on the ground that the employer is having its own other statutory rules and regulations governing gratuity, is illegal since the Act is having an overriding effect over the other statutory rules and regulations, whatsoever. An employer is under a legal obligation to pay at least up to maximum amount of gratuity, permissible under the Act, before seeking relief on technical legal grounds from the writ court. For withholding of gratuity, payable to an employee, under the Act, the employer has to satisfy any of the conditions of Section 4(6) of the Act, otherwise it would be illegal action on the part of the employer.

-Steel Authority of India Ltd. vs. The Controlling Authority under Payment of Gratuity Act and Asstt. Labour Commissoner (Central), Raniganj & Anr. 2017 (Cal. HC.)

The Payment of Gratuity Act, 1972

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