Labour Law & Hr Consultant

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Supreme Court has held that gratuity can be denied only when there is termination on account of misconduct. It is not enough that the alleged misconduct constitutes an offence involving moral turpitude as per report of domestic enquiry. Pl refer attached order dated 6.12.2016 in this regard.
8th December 2016 From India, Malappuram

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File Type: pdf SC - Gratuity can be denied only on termination for mortal turpitude 6.12.2016.pdf (159.7 KB, 169 views)

Analysing the judgment of the Apex Court and the facts narrated therein as they are from the award of the Labour Court and the orders of the hon'ble High Court, I have some observations with due regard to the reasoning of the High Court for depriving the workmen of his gratuity and the Apex Court's orders setting aside the same and granting the relief of gratuity also. Termination arising out of any proven misconduct involving moral turpitude or riotous behaviour can not, ipso facto, result in automatic disentitlement of gratuity of the dismissed employee. There should have been a notice issued u/s 4(6) of the Payment of Gratuity Act,1972 to that effect by the employer before the time limit fixed for its payment. The fact of the issuance of such a notice by the management soon after the dismissal is not ascertainable from any of the lower forum's orders. Since, the Payment of Gratuity Act,1972 itself is a complete Code relating to the matter of Gratuity due to employees, it is pertinent to mention that there is also no reasoning in the High Court's orders disentitling gratuity when the employer had not actually opted to do so.
9th December 2016 From India, Salem
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