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jeeni
11

Dear All,



Greetings!



I want to discuss the following cases with you.



In my company, Mr.A working in stewarding department caught red handed while stealing napkin papers from the hotel with the help of security guard Mr.B.



Both of them suspended at the same time and domestic enquiry conducted. lawyer appointed had given judgement in favour of management. but some hw termination was pending for 2-3 years and company is paying subsitence allowance even i dont why this termination has been pending.



But now we want to terminate those 2 employees, my question is that whether we have to pay gratutity for these employees.As per payment of gratutity act, employer can forfeit their gratutity.



In these years, management has union settlement where they have increased tthe wages and other facilities. Whether we have to consider that angle also.



Please let me knw hw to settle the acoount of these employees as i knw they are going to raise the industrial dispute in the labour court surely.



Regards

Ranjeet

From India, New Delhi
Madhu.T.K
4193

Any way the matter will be discussed in length in Labour Court. But still I thing they are eligible for gratuity because theft is not an offence for which gratuity can be forfeited. Regarding payment of revised salary, since the employee has not worked these days he is not eligible for revised salary. Certainly, if he is exonerated and reinstated he will be eligible for the revision.
Regards,
Madhu.T.K

From India, Kannur
kumaresank
18

I differ with Mr.Madhu’s view.... Employee involved in theft is not eligible Gratuity as it is covered under provision saying "INVOLVED IN MORAL TURPITUDE"
From India, Tiruchchirappalli
sachdeva1208
2

If any dispute arises, then Labour court/courts is the final authority to give the final decision.
From India, Delhi
jeeni
11

i am little bit confused now, If i have to terminate an employee after the domestic enquiry where the charges have been proved and enquiry officer had given decision in favour of management.
Hw to calculate his F &F first thng.
Secondly, What abt gratutity as i have also gone through some cases where gratutity is payable on termination.
In case some one was caught in any misconduct than we have to pay the gratuity or not?
Regards
Ranjeet

From India, New Delhi
Madhu.T.K
4193

According to section 4(6) (b) (ii) of the Payment of Gratuity Act, gratuity can be forfeited for a misconduct involving moral turpitude whereas theft is not such an act. Please refer to Padmanabhan A Vs. Joint Commissioner of Labour, Chennai in which the Madras High Court has decided that " all immoral acts do not amount to turpitude and turpitude means base, most foul or detestable immorality. In a similar case in Karnataka Road Transport Corporation Vs. Mahadev and Others, the Karnataka High Court has directed payment of gratuity to the employee dismissed from service on charge of moral turpitude by saying that total forfeiture of gratuity is possible only if the employee was convicted for the so called offence involving moral turpitude.

Moreover, if the departmental enquiry is not over till the date of the accused employee's date of retirement, the employer can not withhold payment of gratuity as was decided in a Supreme Court judgement, Jaswant Singh Gill Vs Bharat Coking Coal Ltd.

In view of the above, I hope that forfeiture of gratuity should be done only in accordance with section 4(6) of the Act, failing which there is every chance of court's intervention and direction in favour of the employee.

Regards,

Madhu.T.K

From India, Kannur
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