Left Job Without Notice: Can My Company Deny Gratuity and Demand Recovery?

I have worked with a company for 5 years and 6 months. I applied for leave from 27th July to 10th August but didn't return. I informed the reporting manager that I am not coming back and I want to leave the organization. There was no written or email communication, only verbal. Subsequently, my company's HR sent a notice to my Mumbai address to report within 2 days on 12th August. They sent another letter on the 14th (stating I am absconded), and then a termination letter on 17th August. Now, HR claims that I am not eligible for gratuity and is asking for recovery as the notice period was not served. Kindly suggest me on this matter.

Regards,
kmsingha

To consider whether you are eligible for gratuity or not, a few details are necessary. Please let us know:

- The type of industry or company you were engaged in and what type of business it was.
- How many employees were working in the organization.
- Whether you have some documents to show that you have completed a service period of 5 and a half years.
- What type of job you were doing.
- Whether you were initially appointed as a trainee/apprentice, and if so, for how long.

All these points will certainly help us guide you through.

Regards,
Adv. K. H. Kulkarni

Your gratuity will be given. Are you sure that your tenure of working is more than 5 years? Do you have any documents to prove this? If you do, then there is no problem, and you will receive your gratuity.

Secondly, things like taking long leave have to be requested formally in an email to your immediate boss.

Thirdly, you should avoid discussing your plans to leave the job with your seniors, as they might misinterpret and convey it inaccurately to the administration.

Thank you.

Please go directly to your company and inquire about your settlement with all claims. If they are not ready to provide such a settlement, you must visit the Assistant Commissioner of Labour (Gratuity Section) in the district and file a complaint about what has been happening.

Thank you.

Payment of Gratuity Act: Notice Pay and Gratuity Adjustment

As per sections 13 and 14 of the Payment of Gratuity Act, notice pay cannot be adjusted from gratuity. Any deduction or forfeiture is allowed only if an employee is terminated by an action of the employer for committing certain misconduct specified in section 4(6) of the Act.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

First of all, I would like to inform you that your company has the right to hold or waive off your gratuity amount. As per the Payment of Gratuity Act, gratuity paid to an employee is a token of gratitude for the loyalty of an employee for more than 5 years in the same organization.

According to the act, the company can hold the gratuity amount in case of any behavior or misconduct found by an employee. Based on your previous discussion, it was found that you absconded from the company. In fact, they issued you a show-cause notice to explain, but you neither appeared physically in front of them nor sent a reply by registered post as you had informed your immediate supervisor. This could be considered misconduct, such as starting absenteeism without informing the company, and in that case, the company can hold your gratuity amount.

Regarding the recovery of the notice period, the company can recover the notice period salary from you as per the company's HR policy, as it should also be mentioned in the terms and conditions of your appointment letter. This is a separate issue from gratuity.

Regards.

Clearance Formalities and Gratuity Eligibility

You have made a mistake by not submitting your resignation. You are supposed to complete the formalities of the clearance procedure. As per the act, gratuity can be kept on hold if an employee is involved in the loss of the capital of the management or engaged in acts of moral turpitude.

Please complete the clearance formalities and then request your terminal benefits.

Regards,
Satish

@Mr. Anonymous and @Mr. Satish are absolutely right in guiding you. You worked in a company for over 5 years and are eligible too. However, you failed to follow the correct procedure for quitting the company. First of all, you need to address your issue of absconding and settle your clearance with them. For this, you will have to present yourself to the company management/HR. Thereafter, you can claim the gratuity as per the laid-down procedures.

Thanks and regards,
Bijay.

Gratuity Provisions in the POG Act

Can you please tell the members about the provisions in the POG Act that state gratuity is a token of gratitude for loyalty and can be withheld in case of termination?

Regards,
Varghese Mathew

Understanding Gratuity and Its Implications

Let us first be clear about what Gratuity means. The dictionary defines "Gratuity" as "something given as a reward for long and meritorious service." However, with the passing of the Payment of Gratuity Act in 1972, Gratuity became a right of the employee, and its non-payment became a liability, calling for recovery as well as prosecution. Thus, the old concept of bounty or reward is no longer in existence. The rules, rights, and quantum of Gratuity have been framed, and one cannot overlook them with the old concept of gratuity as the grace of the Employer.

Provisions of the Payment of Gratuity Act

Considering the provisions of the Payment of Gratuity Act, generally, the employer cannot withhold the amount of gratuity. However, Section 4(6) of the act allows the employer to forfeit the amount of gratuity if the services of the employee have been terminated for acts of negligence or willful omission causing any damage or loss, then to the extent of loss or damage.

It may be totally or partially forfeited if the services of the employee are terminated for riotous or disorderly conduct or an act of violence, and for an offense involving moral turpitude committed in the course of employment.

Concerns About the Term "Absconding"

I have some resentment over the use of the word "absconding" as referred to in the Notice. Normally, such a description is used in Criminal Law when an accused or a convict is untraceable or his address is unknown, and then by moving the Court by the prosecution, he is declared as "abscond." Are employees who are absent from work for a few days automatically considered "absconding" merely by being called such by the employer? Will this remark by the employer not amount to aspersions?

Case of Mr. Singha

Considering all, in the case of Mr. Singha, nothing of the above has happened so that he is deprived of his right to claim Gratuity. However, it is not clear what type of job he was doing in the company.

I think Mr. Singha is fully entitled to the amount of Gratuity for his service, and as such, he must take proper steps to claim the amount.

Regards.

I feel the company should give you your due gratuity amount since you have worked for more than 5 years. However, check your appointment letter and designation. If your designation was "apprentice" partly during your 5 years of service, then you may not be eligible to receive gratuity. It would be better to check with the company's HR Department once again, and if necessary, approach the controlling authority under the Gratuity Act (Assistant Commissioner of Labor) in the area, who can guide you properly.

Regards,
B. Dakshina Murty

I think you should go and meet your HR department and try to settle the matter. You have made a mistake by not giving them a resignation copy. To claim the gratuity, your employer needs to submit your resignation and your settlement copy. If you are not present in front of them, these formalities cannot be completed.

I met with HR, and they informed me that the FNF (Full and Final settlement) is handled by the finance department. HR will contact me once the check is ready. Today, I called one of the senior HR personnel in the company's support office. She also mentioned that gratuity will not be paid as I did not follow the correct process.

I would like to discuss this matter in detail. Kindly contact me at [Email Removed For Privacy Reasons].

Regards,
kmsingha

The Section 2A of The Payment of Gratuity Act itself says that:

Continuous Service

For the purposes of this Act:

(1) An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike or a lock-out, or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

(2) Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer:

(a) For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than:

(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) Two hundred and forty days, in any other case.

Hope this helps you.

I have never faced such a situation in my career until now. This is my second job in five years. Normally, what I have seen is that if an employee enters the fifth year of service and wants to change jobs, they don't leave the company by calculating 190/240 days as they don't want to create a situation of conflict with the employer. They usually complete the full five years and then resign, and I have only seen one case of this so far.

I have always maintained good relationships with the employees in the organization, so they easily discuss their views with me without any hesitation. This situation arises only when there is a problem in the employee-employer relationship, which I believe both parties should handle carefully.

Thank you.

Dear Experts, Within how many days should I register a complaint for this? What if it is more than 90 days from the date of termination? Is this possible after FNF? How many days may it take after the complaint?