Company gave salary from gratuity so he didn't get gratuity. So its fair or unfair?

My colleague left after nine years from my company. After finishing the transition period, he applied for gratuity. However, my company told him during the COVID-19 pandemic that the company gave him salary from gratuity, so he didn't receive gratuity. Is it fair or unfair to him? Please suggest.

It is not only unfair but illegal to deny gratuity to an employee who left after spending 9 years. The employer cannot adjust salary against gratuity. If they had paid salary during the lockdown period, it is for the country and following the instructions of the government, and you cannot treat it as future gratuity. Now the remedy is to apply in Form I and wait for the response. If not paying, 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 gradually. 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 to pay 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.