Gratuity is a lumpsum and one-time-payment ensured to the employees by a special legislation only on account of certain modes of termination of their employment specified therein and that particular law has been recognized as a complete Code in itself in this regard. So, my view-point is that everything connected with gratuity has to be approached from the perspective of what the Payment of Gratuity Act,1972 stands for.
Even those learned members who are of the opinion that the amounts due from the out-going employee can be recovered by the employer from his gratuity would admit that the P.G Act is a social security legislation. Forfeiture, either partial or whole, of the amount of gratuity is certainly different from the recovery of dues from the gratuity by way of adjustment or otherwise.Therefore, recovery of any monetary dues created out of the subsisting employment relationship between the employer and employee can not be effected in any manner from his gratuity which arises only on the termination of the employment relationship. In view of this fact as well as the provision of Sec.14 of the Act,It is to be noted that any settlement or agreement envisaging the recovery of or adjustment of monetary dues from/against the amount of gratuity is null and void.
Similarly, the protection of gratuity ensured under section 13 of the Act is only against attachment in execution of any decree or order of any court seems to be a hyper-technical argument.
Even those learned members who are of the opinion that the amounts due from the out-going employee can be recovered by the employer from his gratuity would admit that the P.G Act is a social security legislation. Forfeiture, either partial or whole, of the amount of gratuity is certainly different from the recovery of dues from the gratuity by way of adjustment or otherwise.Therefore, recovery of any monetary dues created out of the subsisting employment relationship between the employer and employee can not be effected in any manner from his gratuity which arises only on the termination of the employment relationship. In view of this fact as well as the provision of Sec.14 of the Act,It is to be noted that any settlement or agreement envisaging the recovery of or adjustment of monetary dues from/against the amount of gratuity is null and void.
Similarly, the protection of gratuity ensured under section 13 of the Act is only against attachment in execution of any decree or order of any court seems to be a hyper-technical argument.