Gratuity - employee has not served 1 month notice period but completed 7yrs of continuous service - CiteHR
Sai18
Hr & Payroll Consultant At Kredily
Nathrao
Insolvency N Gst Professional
Drbijoy
Med. Superintendent
+1 Other

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If an employee has not served 1 month notice period but completed 7yrs of continuous service , is he/she will be eligible for Gratuity?anyone plz suggest.
Section 4(6) (a) of the Gratuity Act in India states that the amount of Gratuity payable to an employee can be forfeited by the employer if such employee’s services have been terminated for any act, willful omission or negligence, causing damage or loss or destruction to property belonging to the employer, to the extent of the damage or loss so caused.
Section 4(6) (b) of the Gratuity Act states that Gratuity payable to an employee may be wholly or partially forfeited – if the employee’s services have been terminated due to riotous behaviour, disorderly conduct or any act of violence, or for any act of moral turpitude – provided such offence has been committed in the course of his employment
Failure to serve notice period does not attract Section 4(6)a or b

For not giving one month's notice there is no provision to refuse gratuity payment. If there was a clause in the appointment letter/contract that one month of notice period should be given on either side or salary for the notice period should be paid by either side in lieu of notice period, then in this situation the one month's salary amount can be reduced from the gratuity and the remaining amount has to be paid to the employee.
Drbijoy,
Gratuity cannot be attached even by court decree.
Therefore question of reducing notice period from pay will be incorrect and can be challenged legally.

The employee is eligible for gratuity in terms of service rendered. He did not serve notice period while leaving the job. The question arises what you did in the matter is guiding factor.
Did the employee submitted his resignation or remain absent?
In general establishment initiates action against the employee under terms of his appoinment. Where nothing has done in this direction by the establishment but to pay, if terms of employment has end.

There is no doubt the employee has completed seven years of continuous service and eligible for gratuity under The Payment of Gratuity Act
You cannot deduct the salary in lieu of notice period from the gratuity payable to him
P S Lakshmanan
S.G. Management Services
Kolkata

Hi Sabnam,
Gratuity payment is independent of Notice Period. Unless the employee has been terminated for criminal or uncivil activities, gratuity has to be fully paid to every employee who has completed 5 years of service with your organisation
Regards
Sairam Bandi
Email -

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