Dear Ajeet ji,
While endorsing Ajeetvarma50 and BS Kalsi, I would like to add to them as under:
Gratuity is a statutory right. You should give an opportunity to the employee to be heard why his gratuity should not be forfeited.
In the matter D.V. Kapoor v. Union of India AIR 1990 SUPREME COURT 1923, the appellant was not charged with nor was given an opportunity that his gratuity would be withheld as a measure of punishment. No provision of law has been brought to the notice under which, the. President is empowered to withhold gratuity as well, after his retirement as a measure of punishment. Therefore, it is held that the order to withhold the gratuity as a measure of penalty is obviously illegal and is devoid of jurisdiction.
I am also reproducing the section 4 (6) (1) verbatim for ready reference of viewers as under:
(a) the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused;
(b) the gratuity payable to an employee shall be wholly forfeited,-
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.