Is It Fair for a Company to Use Gratuity for Salary During COVID-19? Let's Discuss

My colleague left the company after nine years. After completing the transition period, he applied for gratuity. However, during the COVID-19 pandemic, the company informed him that his salary was paid from his gratuity, so he did not receive it. Is this fair or unfair to him? Please suggest.

It is not only unfair but also illegal to deny gratuity to an employee who left after spending nine years with the company. The employer cannot adjust the salary against gratuity. If they paid the salary during the lockdown period, it was for the country and in compliance with government instructions, and you cannot treat it as future gratuity. Remedy Now, the remedy is to apply in Form I and wait for the response. If not paid, approach the controlling authority under the Payment of Gratuity Act.

Dear Pooja, It is against the law for an employer to adjust the gratuity amount elsewhere. The employer must pay as per the Gratuity Act. I suggest advising him/her to approach the nearest Labour Department or Labor Enforcement Officer. There is no issue in your case regarding the employee's eligibility for gratuity benefits, and the employer must pay as per the Gratuity Act.

It is evidently a fraudulent act by the employer. Your friend is entitled to gratuity due, regardless of the payment of salary during COVID. This is related to the salary and has nothing to do with gratuity. In fact, he is entitled to gratuity even for the COVID period because he worked for the company at that time.

Since the company has already denied paying the gratuity amount, and I assume they have put it in writing, there is no need to file the form. You and he should directly go to the authority under the Gratuity Act (Labour Commissioner) and file a complaint for not receiving gratuity.