Eligibility for Gratuity Under the Payment of Gratuity Act, 1972
A person eligible for gratuity under the Payment of Gratuity Act, 1972, can be denied gratuity only in specific circumstances:
• 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.
• The gratuity payable to an employee may be wholly or partially forfeited if: (i) 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) the services of such employee have been terminated for any act that constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
Here, the employee is only charged under IPC and not found guilty so far, and it does not arise out of employment. Therefore, his entitlement to gratuity is not at stake.
The right to gratuity is akin to the "right to property."
Radhey Mohan v/s DTC CAT Principal Bench New Delhi, 2012
In the case described above, gratuity cannot be withheld by the Department.