One of our staff is claiming gratuity payment, and he has sent a Form 1 letter to our organization. However, he still has outstanding dues to pay to the company. How should we draft a response letter to him?
Gratuity and pending dues to the company are two different things. Gratuity is a protected payment, and the company can only attach or decline gratuity for specific reasons. Please refer to section 4(6) of the Payment of Gratuity Act.
In one case, when the employee did not vacate the quarter, the company held his gratuity. However, the court clearly stated that the employer had to seek court help to vacate the quarter, but it cannot stop the payment of gratuity. This is the court's view.
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