Gratuity paid under Payment of Gratuity Act, 1972

S. Srinivasa Prasad (Querist) 28 January 2010 This query is : Resolved
Respected Seniors,

One of our Factory's workmen whose services were terminated have received all staturory payments along with Gratuity.

He filed a case for reinstatement.

Upon contest he is willing to compromise the matter and offering to repay the GRATUITY RECEIVED by him (Union Involved).

Now my question is -

It is permissible under the Act / Rules to take the Gratuity amount back ?

Or

What should the management do in this situation ? If it takes the Gratuity amount from Workmen.

OR

What is the best possible deal from the Management's side ?

Please advise A.S.A.P.

Regards,
S. Srinivasa Prasad.
Member of the Club

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Raj Kumar Makkad (Expert) 28 January 2010
No. It is not possible once he has taken his full and final settlement. If management taken such decision, it is against law. Management if bows to the illegal demand then can do what ever it wants. No one can help such management.

Management should stick to the legal position that he has already taken his entire accounts closed so there is no scope of review within the framework of law and he can be appointed afresh on new post on probation basis and can be done in future as per desire of the management...........

Sarjooram Sharma (Expert) 28 January 2010
I am agree with Mr Raj Kumar, However if the workman has filed a case of Industrial dispute, there are two options. either you can contest the case and let the labour court of tribunal decide the the termination is legal or not. and the second option is not very advisable and that to again make a settlement on any lum sum amount with the workman against the case filed by the workman.

B K Raghavendra Rao (Expert) 29 January 2010

The workman was terminated and accounts settled. The workman has received all the statutory payments. His employment chapter with the factory is closed.

Even if he files a case for reinstatement, in all probabilities, he would not succeed. The Management has the following options:

1. Defend its act of termination strongly in the labour court/tribunal with documents and witnesses without compromising with the trade union.

2. If the workman succeeds, go in appeal to the High Court.

3. If the Management wants to fall in line with the union and compromise, it may offer him employment afresh.

Vijayarajan (Expert) 29 January 2010
The employee has received all his benefits and hence the chapter is over. But if the situation compels, the employer can reemploy the employee without previous services.