Gratuity To Be Paid Or Not

Dear All,

Ours is a Logistics pvt ltd company.

An Ex Employee has worked more than 5 yrs in our Company he was heading as a Warehouse Manager for one unit and that was about to close, he also worked day and night and supported a lot to close the unit.

At the same time his marriage was also fixed.

Once the unit got closed completely he handed over all the things and did not report to office for sometime when enquired he said he is busy running here and there for marriage preparation and no one is there to support him.

In the Head Office the Management was planning to put him to other unit which was internally discussed but not conveyed to him.They were waiting for him to report back to office to discuss all these things, but he for a month's time did not turn up.

One fine day he came to office to distribute his weeding card in HO and that was also accepted by top Management and Director also went personally to wish him.

After marriage also he did not report to office telling his blue moon days are not over and as per their custom practices few things are still pending.

As he did not report to office top Management got wild and CEO ,GM and Director of the company suggested me(HR) to send a Termination Letter by post.

As suggested I also posted the letter and he also accepted it and joined a new company.

Now after a gap of 7 to 8 months he approached to our office to give for the claim of PF and spoke to CEO casually and requested for Gratuity and next he sent a mail to CEO stating for request of his Gratuity and CEO forwarded the same mail telling me to check with the Director.

The Director is asking me whether a employee who left without notice period and intimation is there any procedure that his Gratuity and PF can be settled.

Seniors, pl guide me to take decision - what step have to be taken on this issue.

I have to convey to the director on the same.

Thanks & Regards,

Suman

HR

Hi Suman
Even if the employee don't complete his relieving formalities as per the statutory gratuity has to be paid.

Hi Jeevarathnam,
Can u pl explain me the statutory clause for gratuity to be paid.
Need your guidance.
Suman
HR

Hi Suman,
We would like to quote the clause here...
4. Payment of Gratuity - (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement;
Please be informed that every employee who has been completed five years of continuous service is eligible to claim for the payment of Gratuity. Even the employee is been terminated after completion of 5 years.

Hi,
We also like to quote from the "Notes of Cases"...
Disciplinary proceedings after five years of service - no bar to gratuity
If an employee completes continuous service of five years and then get involved in some disciplinary proceedings, it cannot be said that he is not entitled to gratuity as provided under the Act and the Rules. [ Ahmedabad Municipal Corporation Vs Elivina Samualbhai Christian - 2002 (1) LLN.1087 : 2002 (1) CLR. 108 (Guj. H.C.)]
Hope, you will get clear idea now....

Mr.Suman,

Ordinarily gratuity becomes payable by the employer within 30days from the date of termination of the services of an employee. S 4(6) of the Payment of Gratuity Act,1972 empowers the employer to forfeit the amount of gratuity either wholly or partially, if the termination is on a/c of his riotous or disorderly conduct or any other act of violence on his part or for any act which constitutes an offence involving moral turpitude committed in the course of his employment AND permits the employer for proportionate forfeiture of gratuity to the extent of damage or loss caused by the employee in case he is terminated for any act of wilful omission or negligence causing damage or loss to or destruction of the property of the employer. A careful reading of your narration does not indicate such reasons for his termination.Therefore, deposit the actual amount of gratuity due to him by crediting his Bank a/c immediately together with simple interest @ 10% p.a from the 30th day of his termination till the date of deposit.