Dear All, I am working in a tea company and engaged in maintaining the retirement benefits of the establishment. Please note that a garden staff member (in charge of the midday meal), after serving more than 20 years, has resigned due to ill health. He is eligible for a gratuity of Rs. 4,76,476 but has not submitted accounts for Rs. 1,50,000. Now, due to his serious health issues, he is requesting to settle his gratuity, keeping Rs. 1,50,000 set aside, for which he will submit the details once he is fit.
Kindly advise whether partial payment on account of Gratuity is permissible or not.
Your valuable replies are solicited.
Kind regards, Mahesh Khandelwal
From India, Calcutta
Kindly advise whether partial payment on account of Gratuity is permissible or not.
Your valuable replies are solicited.
Kind regards, Mahesh Khandelwal
From India, Calcutta
Legally speaking, this is not permissible as the law on this point makes it amply clear that gratuity cannot be attached, and it is an absolute right, as could be seen in this case (Reference Section 4 of the PG Act 1972; there is no provision for any deduction).
However, having had to deal with a similar situation, a way out was tried by taking a receipt from the workman for having received the full amount of gratuity and taking authorization for making the mutually accepted amount. The balance amount was then paid to the employee. This had resolved the problem, and later there was no litigation on this point. You may consider the alternative with the associated risk.
From India, Mumbai
However, having had to deal with a similar situation, a way out was tried by taking a receipt from the workman for having received the full amount of gratuity and taking authorization for making the mutually accepted amount. The balance amount was then paid to the employee. This had resolved the problem, and later there was no litigation on this point. You may consider the alternative with the associated risk.
From India, Mumbai
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