Employee Caught Forging Documents: Should Gratuity Be Forfeited for Moral Turpitude?

An employee who forged his educational qualification certificate during his tenure was found to have also forged a higher official's signature during the enquiry proceedings. He was given ample opportunity but was found to have proved his guilt. Hence, moral turpitude, as proven, would justify the forfeiture of gratuity.

In my opinion, the provisions for the forfeiture of gratuity are allowed in cases where the employee is involved in riotous and disorderly behavior but not in cases of moral turpitude.

Regards,

Provision for Forfeiture of Gratuity

Section 4(6) provides as under:

“Notwithstanding anything contained in sub-section (1):

- (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 may be wholly or partially 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.”

So, yes, he can be terminated for moral turpitude.

There are lots of judgments on this; you need to review them and ensure that your case falls under the guidelines given by the court. Check the link below.

gratuity can be forfeited

Conditions for Forfeiture of Gratuity

Gratuity can be forfeited if:

(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 caused.

(b) The gratuity payable to an employee may be wholly or partially forfeited:

(i) If the services of such an employee have been terminated for riotous or disorderly conduct or any other act of violence on his part.

(ii) If the services of such an employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.

Theft, misappropriation, and deceit are legally recognized to involve moral turpitude, thus forming grounds for the avoidance of gratuity.

See this for more Indian Labour Laws & Shram Suvidha Simplified.