Sr.manager - Hr&admin
G Nachiar
Hr Manager

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Regarding Gratuity we have a query sir. Can the employer hold the Gratuity payment to employees if they completed more than 5 years of service and left the company. Also can the employer link the Gratuity with the Final settlement of the employee. Pl guide us with the Gratuity act. We would like to know what the Gratuity Acts says on this.
Employer cannot hold the Gratuity payable to the relieved employee.
Gratuity can be paid along with Full and Final Settlement as one cheque with brief break-up of each item.
However please note that Gratuity payment to made to employee within 30 days from the date of reliving of the employee.

Dear Nachiar,
The gratuity payable to an employee shall be wholly forfeited for the following reason mentioned:
 If the employee terminated due to Misconduct or Mis-behavior
 Or any Offence commited by the employee during the course of employment
some companies will pay it as seperate cheque after 15 working days of relieving, as the company has a gratuity tie up with LIC gratuity scheme.
Karthick Ramadoss,
Senior HR

The following are the exemptions.
Section 4 (6) of the Act permits an employer to forfeit gratuity payable to an employee in the certain circumstances. As per the said provision:
✓ The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer' shall be forfeited to the extent of the damage or loss so caused;
✓ The gratuity payable to an employee may be wholly or partially forfeited (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

Dear sir,
Thank you for your response.The employees left the company one year back and the employer has not settled their gratuity and they are holding it for an year. Around 20 employees have left in 3 months time last year by May to June because of discomfort with Management. They are giving us mental pressure by not settling our gratuity payment. Shall we approach Labour council for this. pl advice.
G Nachiar

Yes you can very much take it further with the Controlling Authority as per Act ( Assistant Commissioner of Labour of jurisdiction)
Not sure whether you have requested for Gratuity with the employer in writing. If submitted already you can attach the copy of the same while filing the case with the Assistant Commissioner of Labour .

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