Can an employer hold the payment of gratuity?
From India, Ahmedabad

Section 4(6) in the Payment of Gratuity Act 1972 provides for forfeiture of gratuity as follows:

(a) the gratuity of an employee, whose services have been terminated for any act, wilful 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.
(b) 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
But before forfeiture, the employer has to issue a show-cause notice as to why the gratuity shall not be forfeited for the reasons to be stated. In consideration of the reply, a speaking order shall be issued.

From India, Mumbai
If you have not received any show cause notice for forreiture of gratuity You may ask HR if no reply file petition with the appropriate authority for claim
From India, Chennai
Hi, Rightly said by KKHR gratuity can only be hold only in case termination as mentioned in Section 4 of the Payment Of The Gratuity Act 1972.
From India, Delhi
With due respect to adding KK HR statement under Code on Wages 2020 following to be included for forfeiture of gratuity.

“sexual harassment” which means the ‘sexual harassment’ as defined in clause (n) of section 2 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (14 of 2013) and includes the circumstances specified in sub-section (2) of section 3 of the said Act.


From India, Thane
Right to forfeit gratuity of employee by the employer not absolute but only when the employee has been dismissed for the misconduct as specified in section 4(6) of the payment of Gratuity Act. Even such forfeiture can be taken-up only after giving an opportunity to the concerned employee, issuing a show-cause notice.
Thanks & Regards,
Sumit Kumar Saxena

From India, Ghaziabad

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server