Employees Gratuity: If you are a government or private employee then this news is for you. In fact, according to a recent update from the government, let us tell you that now employees will not get gratuity for this mistake. To know the complete details related to this update, read the news completely.
Gratuity is paid to all government and private sector employees for working with the same company or employer for a certain period. Everyone knows this, but this time very few employees would know that under certain conditions your employer may refuse to pay gratuity.
Under the Gratuity Act 1972, every company that employs more than 10 employees is required to pay gratuity. But, if an employee is being fired from the company due to his misbehavior or giving wrong information, then the employer can refuse to pay him gratuity. The Gratuity Act says that if an employee is fired from the company due to any willful default or causing damage to the property of the employer or his services are terminated due to any negligence, then the employer will have the right to withhold gratuity equal to his loss.
Employer’s rights are also limited –
It is not that the employer can stop the gratuity of an employee just by giving one reason. A proper law has been made in this regard also in the Gratuity Act. It is clearly stated in this that if the employer withholds the gratuity of an employee, he will first have to give a valid reason and can withhold the amount of gratuity equal to the loss claimed therein.
What does the law of gratuity say –
According to section 4(6)(b)(ii) of the Gratuity Act, any behavior done by an employee which causes loss to the company, even if it is on moral grounds, yes. In such cases, the employer will first issue a notice to the employee and seek his reply and only then can he start the action to stop the gratuity.
What is the order of Delhi High Court-
Delhi High Court has also passed an order in this regard. Justice Pratibha M Singh had said in her decision that if an employee’s moral or material actions cause loss to the company, then the employer can withhold gratuity from him to compensate for his loss. The court has made it clear in the decision that in such a case, the same amount of gratuity can be withheld as the loss suffered by the employer.
