Gratuity deduction - Does the company have the right to deduct such an amount for Gratuity?

In my previous organization, I was on the bench from October 2021 to January 2022. They continued to pay me until January 2022, but during the Full and Final (F&F) settlement, they deducted my January month's salary from the Gratuity amount, stating that they had mistakenly paid me for January 2022.

Does the company have the right to deduct such an amount from Gratuity?

Gratuity amount cannot be used to recover any amount due to the employee. To that extent, the action of the company is illegal.

Please explain what exactly you mean by deducting the Jan 22 amount and why it is being deducted. Actually, since you worked for less than a year, you are not even eligible for gratuity. How did they pay it in the first place?

I joined the company in August 2016. Due to COVID, the company kept me on the bench from October 1st to January 22nd. After that, I resigned from my position. Till date, the company has paid me my salary. However, in the Full and Final settlement, they deducted the January 2022 salary from my Gratuity, stating that it was paid to me by mistake.

This is what happens when you do not give the full details.

You should first ask your HR to explain why they claim that the January 2022 salary was paid by mistake. Did you work for the month, or did you not finish the notice period?

But in either case, no amount can be deducted from Gratuity. You can tell them to pay it to you (irrespective of their other claims against you, which they will have to find alternate ways to recover from you). If they do not do so, you can file a complaint with the relevant authority under the Gratuity Act, which is mostly the Labour Commissioner of your district.

Gratuity cannot be taken for adjusting any other dues recoverable by the company.