Understanding Moral Turpitude in Gratuity Forfeiture: What Actions Could Lead to Loss?

Understanding Moral Turpitude in Gratuity Forfeiture

What does moral turpitude mean in terms of gratuity forfeiture? What acts, deeds, or omissions will be included in moral turpitude?

Thanks in advance...!!!

The term "moral turpitude" is defined as "a corrupt, depraved, or degenerate act or practice." In the context of the company, it refers to willful destruction of company property, instigating violence, physical attacks, hindering other workers from following safety precautions, posting derogatory messages outside of the company premises, causing injuries to other employees, and so on.

Regarding the forfeiture of gratuity for actions stemming from moral turpitude, the opinions of other senior members will be sought.

Thanks,

Dinesh V Divekar

Dear Prashant ji, While endorsing Dinesh ji, I wish to add further on the basis of TIPS on POG Act as given in the publication by Labour Law Agency as under:

Understanding 'Moral Turpitude'

'Moral turpitude' is an expression used to describe conduct that is inherently base, vile, depraved, or showing any connection to depravity. It refers to anything done contrary to justice, honesty, modesty, or good morals. Theft is an offense involving moral turpitude. Consequently, if the service of an employee is terminated for committing theft in the course of employment, the gratuity payable to him under the provisions of the Act stands wholly forfeited in view of Section 4(6)(b)(ii) of the Act: Bharat Gold Mills Ltd. Vs RLC(C), Bangalore 1987 I CLR 189.

If the act is not connected with employment and if the employee is convicted by a criminal court under IPC, can the employer forfeit the Gratuity?

Understanding Moral Turpitude in Gratuity Forfeiture

"Moral turpitude" is an expression used to describe conduct that is inherently base, vile, depraved, or showing depravity. It refers to anything done contrary to justice, honesty, modesty, or good morals.

Theft is an offense involving moral turpitude and consequently, if the service of an employee is terminated for committing theft in the course of employment, the gratuity payable to him under the provision of the Act stands wholly forfeited in view of Section 4(6)(b)(ii) of the Act. Bharat Gold Mills Ltd. Vs RLC(C), Bangalore 1987 I CLR 189.

Regards

If the act of moral turpitude is not connected with the company (for example, rape in his personal life), then why do you want to hold the gratuity of the employee? Tell the employee to submit their resignation immediately, and that is all. Loss of employment, in itself, is punishment.

Of course, this is my personal opinion. In personal life, for whatever has happened, the guilty has been punished under the IPC. Now, if the company also punishes, then it will be double punishment. For any offense/conviction, there can be only one punishment and not two. Therefore, please think twice before you invoke this rule. Please check the standing orders as well.

I say this because the loss of pecuniary benefits will cause hardship to the guilty's family members. In a real sense, they will be punished more than the guilty itself.

Thanks,
Dinesh V Divekar

Section 4(6)(b)(ii) clearly states that such an offense should be committed in the course of employment. Also, services should be terminated for such an act. Termination on moral turpitude and moral turpitude in the course of employment are two ingredients for the forfeiture of gratuity as per the above-mentioned section.

Regards.

I wish to add that the authority punishing for Moral Turpitude has the power to forfeit the amount of gratuity. Therefore, the order should include provisions for the forfeiture of the gratuity amount.

Regards

Who could be the punishing authority for Moral Turpitude, and what is the Controlling Authority for Gratuity?

Keshav ji has well explained the meaning of 'moral turpitude,' and to illustrate what acts fall within the ambit of 'moral turpitude,' I would like to add that acts like fraud, forgery, misappropriation, misconduct against women, or theft, which reflect dishonesty and the base character of the delinquent, can fall within the ambit of moral turpitude.

Regards,
B. Saikumar
HR & Labour Law Advisor

The term Moral Turpitude has been explained by various professionals above, especially Keshav ji. In simple words, misconduct that goes against the accepted norms of society, if committed during the course of employment, amounts to misconduct under moral turpitude in the context of any establishment. In such a case, if the dismissal of an employee has been made on the ground of moral turpitude, it has to be clearly mentioned in the Dismissal Order along with the amount of gratuity that has to be forfeited. If there is no mention of it in the Dismissal Order, the amount of gratuity cannot be forfeited under any circumstance, not even by any decree by the court. The Dismissal Order also has to be passed by the Competent Authority, i.e., the appointing authority, as only the appointing authority can dismiss.

Regards,
AK Jain
HR Personnel
NCL (CIL)