Dear Professionals,

Please advise me for the below gratuity payment case of an employee in one of the organizations of the town.

The said employee has been charged and later proved for helping top management in some financial corruption. He did not get any financial benefit it the above corruption but showed his disloyalty with the owner of the company.

Mr. Accountant was asked by the owner to stay there as long as you make financial statements for the culprits. He was then neither asked nor issued any letter of termination. Mr.Accountant after sometimes submitted his resignation with one month notice which was not accepted by the management. But no letter for acceptance / rejection of resignation was issued to him against his resignation.

He completed his notice period and left the company.

HR dept made a full n final settlement including his gratuity payment but top management refused to pay the gratuity amount on account of his malpractices.

The Accountant is intending to sue against the organization for not paying him gratuity payment.

Please guide HR dept that how can HR deal with the said situation and how can HR dept can defend it.

HR dept is not as powerful in that organization. My HR friend is afraid of court cases.

Hoping for the guidance from professionals.


Abdul Basit
27th January 2014 From Pakistan
As per the case you have stated above, this employee is quite eligible for Gratuity and management can not hold it.
You can not defeat him in court by referring the case where he was involved in helping the management for financial fraud.
Its better to pay him to avoid the filling case expenses.
27th January 2014 From India, New Delhi
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