Gratuity is an amount that is given to any employee as a reward for his excellent services. However, an employee is entitled to gratuity only after 5 years of service. The amount of gratuity is given to the employee at the time of leaving the job or at the time of retirement on the basis of his service period. But in some situations, the company can also stop the gratuity of the employee if it wants. Here know those mistakes which if committed by the employee, he can cause great loss to himself.
In these situations the company will not give gratuity money
The company cannot stop the gratuity money of any employee without any reason. But if an employee is accused of unethical behavior, or if the company has suffered a major loss due to his negligence, then the company has the right not to pay his gratuity amount.
The company has to present evidence
If the company stops someone’s gratuity, it has to first present the evidence and the reason for it. Whatever reason the company is giving, it has to issue a show cause notice to the employee. After this, both the parties are heard. The gratuity money will be stopped only after the employee is found guilty. But even in this case, the company will deduct only the amount it has suffered as loss.
Even in these circumstances, the company will have this right
When the company or institution is not registered under the Gratuity Act, the employees are not covered under the Gratuity Act. In such a case also, it is the discretion of the company to pay or not pay gratuity.
If the company stops gratuity without any reason
If the company does not pay the gratuity amount even after completing 5 years of good service, then the employee can send a notice to the company regarding this. If even after this his problem is not resolved and the amount is not paid to him, then the employee can complain against the company to the District Labor Commissioner. If found guilty in the case, the company has to pay the gratuity amount along with penalty and interest.
These are the rules of gratuity
If 10 or more people work in a private or government company, then that company should give the benefit of gratuity to all the employees. On the other hand, if the employee has worked for 4 years and 8 months in the company, then his job will be considered for a full 5 years and he will get the amount of gratuity as per 5 years. If he has worked for less than 4 years and 8 months, then his job period will be counted as 4 years and in such a case he will not get gratuity.
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