Deduction from gratuity
jaiprakash
(Querist) 04 January 2019
This query is : Resolved
My friend has worked for 12 years in a publishing company as Marketing Manager in Bangalore and he tendered his resignation. When he demanded for gratuity, they initially paid Rs. 25,000/- and balance amount of about Rs. 75,000/- is held by the company stating that he has to recover the money from the customers. My friend approached labour department and now the company has filed objection stating that my friend has not collected dues from the customers and hence they cannot pay the balance gratuity amount. Dear learned advocates, could you please advise as to whether the act of the company is legal? is there any judgement or citation with reference to this case? also, please advise as to how my friend has to defend in order to get the statutory right of gratuity?
vasant kulkarni
(Expert) 05 January 2019
IT IS WRONG.CO CAN NOT HOLD BACK THE AMOUNT. GIVE THE CO A REGD. AD. NOTICE DEMANDING THE GRATUITY MONEY IN FULL, SUBJECT TO CEILING OF RS.20 LAKHS.
Adv Shailendra Deshpande
(Expert) 05 January 2019
Under sec. 4 (6) (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.
Hence employer can forfeit gratuity if an employee makes a loss to the company. The forfeiture would be to compensate the loss. But the important thing to note that the service must be "terminated". And since your friend has put resignation, he had already taken legal action, hence it is better to follow advice of lawyer appointed by him. .
krishna mohan
(Expert) 07 January 2019
It is a lawful entitlement subject no fault or loss to the company. Hence your friend need to seek details and sort out to ensure that no financial loss on account of your friends failure and receive his entitlement of gratuity.
