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Mahesh Khandelwal
1

Dear All,

I am working in a tea company and engaged in maintaining retirement benefits of the establishment. Please note that a garden staff (in-charge of mid day meal) after serving more than 20 years has resigned due to ill health. He is eligible for gratuity for Rs.4,76,476/- but not submitted accounts of 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 advice, whether part payment on account payment of Gratuity is permissible or not?

Your valuable replies are solicited.

Kind regards,
Mahesh Khandelwal

From India, Calcutta
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
KK!HR
Management Consultancy

KK!HR
1515

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 similar situation, a way out was tried, by taking a receipt from the workman for having received the full amount of gratuity and taking an authorisation for making the mutually accepted amount and the balance amount was paid to the employee. This had resolved the problem and later there was no litigation on this point.
You may consider the alternate with the associated risk.

From India, Mumbai
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