Can My Gratuity Be Withheld for Unfinished Work After Retirement? Seeking Advice

I retired from service on 1.6.2022 after 34 years and 6 months of continuous service and am eligible for a Gratuity of Rs. 653,210.00. There is a Gratuity Fund in place that handles Gratuity Payments for the employees. Throughout my entire service period, I was never issued any show cause letter or charge sheet regarding my performance. At the time of my retirement, I had some pending paperwork and files which I verbally handed over to the person appointed in my place. It is important to note that there was no service condition requiring me to hand over my responsibilities in writing, and the company did not raise any objections before my retirement.

Now, can the Gratuity Fund withhold payment of my gratuity due to the pending work from my service period?

I think that the poster was formally permitted by his employer to retire from service upon attaining the age of superannuation, and thus the termination by way of formal retirement was unconditional.

Gratuity Forfeiture Conditions

Only in the case of termination by way of dismissal for any misconduct of the nature specifically mentioned under section 4(6) of the PG Act, 1972, can the gratuity be forfeited either partially or in full after due notice. At any cost, the amount of gratuity as per the calculation of the employer shall be either disbursed or deposited with the Controlling Authority under the Act for the area within 30 days from the date of termination of employment.

Administrative Delay and Action Steps

In view of the recent retirement date and the long duration of the poster's service mentioned, there may be some administrative delay caused by a communication gap. Therefore, the poster need not be in haste or panic to entertain wild imaginations on his own. Let him write a formal letter to the employer to release his gratuity amount from the Gratuity Fund immediately.

You didn't give a formal handover (written document), which is not an issue. If they ask for this in the future, then proceed accordingly. Please send a formal letter or discuss in person with the HR department about the gratuity amount and any other retirement benefits. Only then will you get clarity on this issue.

The querist seems to have unnecessary apprehension about his gratuity settlement. He has retired from service upon reaching the age of superannuation, and hence it is a normal process of employment. The employer has not issued any notice seeking to withhold or reduce the gratuity. The querist has not committed any violent activity nor any act constituting moral turpitude, as duly proved in an inquiry with an order of punishment being issued in this regard. It is further assumed that the querist has not been issued any order during his service tenure regarding deduction in full or part for any calendar year wherein he failed to render continuous service as contemplated under the Payment of Gratuity Act.

In the above circumstances, the querist can rest assured that he shall receive his full gratuity. The querist is advised to write a formal letter to his employer (Notice of claim for gratuity under the Gratuity Act) requesting the release of his gratuity within 30 days of retirement. In the event of non-settlement of gratuity despite his letter or notice within 30 days, he can move the controlling authority to seek a remedy. Furthermore, it is expected of the employer to deposit the gratuity amount with the Controlling Authority not later than 30 days under dispute.

P. Senthilkumar