Gratuity Withheld After Retirement: What Legal Steps Can We Take for My Father?

Hello Seniors,

I have a question related to withholding of gratuity after retirement. Are there any laws under which the gratuity can be withheld after retirement? If so, what are the conditions under the law?

My father retired as a bank manager a year ago, and his gratuity has been withheld. What legal steps can be taken now?

(Posting it again as I am unable to find the previous thread)

Did your father face any legal proceedings in the bank before he retired?

Normally, gratuity does not get withheld. So, you have to provide further details of any reasons for which the bank is withholding gratuity.

In this case, gratuity cannot be withheld. You should write to the bank's higher-ups regarding the matter.

My doubt is, can gratuity be withheld due to the above-mentioned reason? Are there provisions under the Gratuity Act 1972 to withhold it after retirement?

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If there is no disciplinary proceeding pending at the time of retirement at the bank level, such as a charge sheet, and your father has been issued a clean relieving letter without laying down any conditions therein, then the bank shall pay gratuity to your father after retirement.

B. Saikumar

Gratuity cannot be withheld unless there are criminal proceedings in a court of law against such an employee. Hence, you can approach the jurisdictional DCL (Deputy Commissioner of Labour) with a request in the prescribed form (as provided in the Gratuity Act), who will intervene and sort out the issue.

Hello seniors,

I have a doubt regarding my father's gratuity. The bank has initiated an inquiry a year after his retirement. The reason for the inquiry is that he has taken out more loans. However, the documents for the loans are in order.

Can this be considered as financial losses to the bank, and what actions can we take regarding this issue?

"The reason for the enquiry is that he has granted more loans. But the documents for the loans are proper."

If the papers are in order and due diligence is done by our father, the bank cannot do anything. What was your father's position in the bank? Was he the final authority for the loans? What is the query regarding gratuity? Has your father not received gratuity?

My father was working as a senior manager, and he was the final authority. He hasn't received the gratuity.

The query is: Can the bank authorities deny the payment of gratuity due to this issue? And can this be considered as a financial loss to the bank.

Please let me know if you need any further assistance.

Gratuity cannot be withheld unless the service of the employee is terminated due to some misconduct related to moral turpitude. Since your father has superannuated and his service is not terminated, his gratuity cannot be withheld under any circumstances. Ask him to apply in FORM I before the company, and if the company does not pay within a month, then apply before the controlling authority under FORM N along with an application for condonation of delay.

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