Unsplashed background img 1
Before withholding and forfeiting the gratuity employer has to find specific quantum of loss caused by the employee. - The Payment of Gratuity Act, 1972

Forfeiture of gratuity of an employee on account of loss/damages caused by that employee to the employer without putting him on notice, suffers from patent illegality in view of Rule 8 (ii) of the Payment of Gratuity (Control)Rules, 1972.Without finding specific quantum of loss caused by the employee, withholding amount of gratuity is not sustainable. For forfeiture of gratuity on account of financial loss suffered by the employer, the employer is required to begiven proper opportunity of hearing and submitting his/her defence as to whether why his gratuity is liable to be forfeited.

-Gayatri Prasad Singh vs. F.C.I. and others. 2019 (P&H H.C.)

Did you find this content helpful?

Yes No

Call us on 09920-100-462 |Request a quotation

LK Nakashe Consultants Pvt. Ltd is India’s leading compliance & labour law consulting firm. Headquartered in Mumbai, we are ISO 9001 Certified & Crisil Certified, and we serve all 29 states and 7 union territories of India. Our service bouquet includes Registration & Renewal Services, End-to-End Monthly Compliance Services, Audit & Due Diligence Services, Advisory & Consulting Services, Payroll Management Services and Contract Staffing Services. Our client list of 750+ companies includes some of India’s biggest business conglomerates, MNCs, public listed companies & SMEs

First-of-its-kind app that UN-COMPLICATES compliance & labour laws. Download for free on iOS & Android Google play App store