Please advice
N.J. MISHRA
(Querist) 25 March 2013
This query is : Resolved
DEAR MEMBERS KINDLY ADVICE;
ONE OF OUR EMPLOYEE WHO HAS SERVED OUR COMPANY FOR 7 YEARS WAS FROCED TO RESIGN FOR NOT PROVIDING ACCURATE ACCOUNTING DETAILS AND THE LOSS CAUSED TO THE COMAPANY HAS BEEN DEDUCTED FROM HIS SALARY; HOWEVER, OUR COMPANY TOLD THE EMPLOYEE TO RESIGN FROM THE JOB OTHERWISE IT WILL ISSUE TERMINATION LETTER WHICH WILL RUINED HIS CAREER. THE EMPLOYEE UNDER FEAR HAS RESIGNED AND NOW ASKING THE COMPANY TO PAY HIS GRATUITY. THIS IS THE FIRST INCIDENT HAPPENED IN HIS CAREER FROM LAST SEVEN YEARS AND MAY BE DUE TO NEGLIENCE ON HIS PART.
AS PER SEC 4(6) OF PAYMENT OF GRATUITY ACT IF THE LOSS CAUSED TO THE EMPLOYER DUE TO MISCONDUCT OF EMPLOYEE THEN THE AMOUNT PAYABLE TOWARDS GRATUITY CAN BE FORFEITED TO THE EXTENT OF DAMAGE OR LOSS CAUSED.
NOW MY QUERY IS THAT DESPITE THE COMPANY HAS DEDUCTED THE AMOUNT OF LOSS FROM EMPLOYEE'S SALARY, STILL CAN FORFEIT THE AMOUNT PAYABLE TOWARDS GRATUITY.
HOWEVER, THE COMPANY DOES NOT HAVE ANY EVIDENCE TO SHOW THAT HE WAS TERMINATED BECAUSE COMPANY PRESSURIZED HIM TO PUT RESIGNATION LETTER. WHAT WILL BE THE OUTCOME IF COMPANY FORFEITS HIS GRATUITY AMOUNT.
Guest
(Expert) 25 March 2013
Mr. Mishra,
No one can stop the employee to take advantage of company's folly when the employee was asked to resign instead of the management taking disciplinary action against him, proving his offence on record and terminating his service.
None else, instead of the company management, itself, can be blamed to have created the liability of gratuity. The company cannot forefeit his gratuity for inaction of the companyfor his offence, if his resignation has already been accepted.
For action on company or those, who are becoming hurdle in making payment of gratuity, you as a Legal Officer of the Company may better read sec.9 of the Payment of Gratuity Act.
Sankaranarayanan
(Expert) 25 March 2013
According to your statement , the company received the resignation letter and sent him without any inquiry or commitment, liabilities from him , how the company now forfeit the gratuity .
