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Santosh Kumar (Advocate and Legal Consultant)     06 June 2010

Adjustment of gratuity amount

Dear friends,

An employee was working in accounts department of a company, deputed at a branch at location 'A' and handeling complete accounts affairs of that branch with the reporting to zonal manager at location 'B'.

He was transfered to another branch at 'C' and during reconciliation found found involved in a misappropriation of accounts/funds. He joined at 'C' while suspence in his name was pending at 'A'. Later he resigned. 'Full and Final' was prepared without adjusting due amount pending against him. His reporting officier did not give NOC to him. 'Full and Final' sheet was given to him but not the payment and not the NOC an reliving.

He wrote a letter to his reporting officer stating therein that he admits the claim of the company and wants to settle his acounts by part thereof shall be paid by him and part thereof by adjusting with the amount of  gratuity, PF etc.

Now he has claimed his payment of gratuity before commissioner at location 'A' but despite 5 dates fixed there he is not appearing. After 6 months he has joined another company.

Company has also filled a criminal case against him.

Now what would be the legal status as far as the payment of gratuity is concerned, in view of their claim, non - payment by the company, his admision of liability and ready to settle them with gratuity amount ?



Learning

 1 Replies

V. VASUDEVAN (LEGAL COUNSEL)     07 June 2010

The company can file an affidavit before the commissioner of the Gratuity, setting out the facts and proof of his admittance of the misappropriation. On this basis the company can even forefeit the gratuity. However, if the Company, during the process of settlement has agreed to make final settlement after adjusting the outstandings, cannot at this stage claim forefeiture. However, it can deposit the net amount payable, after adjustment of admitted claim, before the commissioner.

vasudevan


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