Can a Bank Forfeit Gratuity After 33 Years of Service? Seeking Clarity on Dual Punishments

I have been awarded punishment of compulsory retirement, and my gratuity has been forfeited. Is it possible for a person to be awarded two punishments? Can a bank forfeit my gratuity? I have completed 33 years of unblemished service in Punjab National Bank.

The information furnished by you is not sufficient to form an opinion on the issue raised by you. The gratuity rules applicable to you, as well as the final order given to you, have to be seen to answer your question.

With regards,

Forfeiture of Gratuity: Not a Double Penalty

Forfeiture of gratuity is not a penalty as it is not enumerated under either service rules or standing orders. It can be forfeited only on termination for misconduct proven in a departmental enquiry in terms of section 4(6) of the Gratuity Act. Thus, it cannot be construed as a double penalty.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

It is not known for what reasons your gratuity is forfeited. Generally, gratuity can't be forfeited. However, in exceptional cases where misconduct is duly proved in the inquiry, it is permissible. I know of a case from my previous company where the cashier was involved in the misappropriation of funds and subsequently dismissed from service. His gratuity was held. The person filed a court case. In the first hearing of the case, the presiding officer of the court advised both parties to arrive at an amicable settlement before it proceeds to a final decision on its merits because gratuity is a social security provision. The provision of gratuity is for the worker and their family as well. We have paid more than 50% of the gratuity to him, and the issue is settled. So without knowing the reasons for the forfeiture of the gratuity, further advice is not possible. It is understood that if you have an unblemished service record, then forfeiture is not permitted. Therefore, find out the reasons in writing from the bank and decide.

Regards,
SDP