Adv. SIddharth Jain
(Advocate )
20 March 2018
Sections 4(6) (a) of the Gratuity Act in India states that the amount of Gratuity payable to an employee can be forfeited by the employer if such employee’s services have been terminated for any act, willful omission or negligence, causing damage or loss or destruction to property belonging to the employer, to the extent of the damage or loss so caused.
Therefore it is important that an employer pass a specific order for forfeiture of gratuity of the employee. Accordingly, an employer must simultaneously pass an order of forfeiture alongside an order of termination with respect to the employee. Without a specific order for forfeiture of Gratuity, forfeiture cannot be made under Gratuity law in India.