Chargesheet For Absenteeism - Can Company Hold Employee's Gratuity?

Gokul Kurup
Dear Seniors,
If an employee is terminated after proper enquiry and chargesheet for absenteeism then can company hold his gratuity.I have read about theft,etc but wanted to know specifically for termination for absenteeism.
Labour Law Index
The gratuity payable to an employee may also 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.
As held in the case of Bharat Gold Mines v Regional Labor Commissioner, Any decision under the (i) and (ii) cannot be taken unless employee has been given due chance to fair hearing from employer. Also theft is an offence involving moral turpitude.
Read this Payment of Gratuity Act, Rules, Forms, Returns & All Other Information
Gokul Kurup
Dear Sir,
I have read this but it says about theft, violence or such big issues. I want to know for absenteeism particular.
Labour Law Index
Prolonged absenteeism that is so rash so as to constitute breach of employment contract can be covered under "disorderly conduct". But this is subjective and there is no benchmark. So go through the case study in the link.
Labour Law Index
But if you ask me I do not think absenteeism is a valid ground if you have reasonable explanation for that.
riteshmaity
This is a complex issue but I do not think gratuity can be withhold under the law only for misconduct of habitual absenteeism.
Soumitra Sengupta
Dear Mr. Gokul,
Gratuity is a goodwill payment for long service by employees. It therefore is given on confirmation on accumulated goodwill (not in accounting term) during service period and Companies are free to deduct a part or full Gratuity (has to be a judicious decision) payable if the "Goodwill Thread" is broken.
However, since Payment of Gratuity" is an enacted practice, it is advisable to support Organisational decision of non-payment (in part or full) Gratuity with a letter issued to the effected Employee therein giving details of "punishable offence" committed by him and deduction made from Gratuity there upon.
Now, absenteeism is not a punishable crime for which deductions be made from Gratuity.
Regards,
Gokul Kurup
Thanks to all the seniors who helped me in resolving my doubt.With your advice I reached to a concluding that absenteeism is not a crime hence we cannot hold the gratuity. Thank you all.
varghesemathew
Gratuity is not a goodwill payment.It is a right.Absenteeism is not a reason to forfeit it.Absenteeism which is treated as break in service can be deducted from total continuous service as per sec 2 A of Payment of Gratuity Act.
h.hari hara saubramanian
I am a epf esic consultancy in tuticorin. local enforcement officer epf said only 20%of HRA FROM GROSS TO EXEMPT PF CONTRIBUTION. IF IT IS CORRECT.PLEASE ADVICE ME.
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