Deny to pay the gratuity

Operational loss on  allegation of poor performance can  not be recovered from Gratuity payable. Loss due to damage of property etc only can be recovered. Move an application before controlling authority under the

act

Thank You Sir.

Sir they exactly send me this type of mail. Please suggest

As you are aware you were fired (terminated) because you were the module leader for the client project and this project was terminated by client  because you were unable to deliver the requirements even after several extensions and warnings. Client  has clearly mentioned your module as having failed the requirements. Due to your negligence this project was terminated and Company  incurred huge losses not only in terms of the project cost, loss of project revenue but also because Client decided to revoke our Performance Bank Guarantee. These losses run into several Crores of Rupees and a bad name in the industry because of which we may lose out on new projects. 

You were clearly told about this reason for your termination at the time of your termination and consequently the company has forfeited any gratuity that may have become liable towards you.  

At this point of time, the company is evaluating the other benefits that may have been paid to you for which we will send a separate letter asking that those be returned immediately with interest, due to the losses mentioned above.

Sir,

Is the employer have the right to forfeited the gratuity on the above condition which is they mention?

Did I send them a legal notice on the basis of this mail or I need to send them a paper work for claim of gratuity?

Did I file a case at consumer court also?

At the employee time if the company might be pay some benefits then after terminate is the company have right to claim this amount with interest?

Please suggest your valuable suggestion and guide me how to proceed.

Thank is Advance

The employer shall be justified in forfeiture of gratuity only if loss suffered by him is due to wilful ommission or negligence. since the forfieture is by way of punishment the employee can challenge the same. My opinion is that you file an application for direction before the controlling authority and if unsuccessful file a writ in HC impleading employer and controlling authority.

Dear Sir,

It is the prerogative of the Employer, if  justified  the  forfeiture of gratuity only in the event  iof loss suffered to the Company on account of the  wilful ommission or negligence of your friend . But the employer has to prove the allegations levelled against your friend by observing the Principles  of Natural Justice.

Since the forfieture is by way of punishment and illegal without observing the procedure established by Law,  the employee can challenge the same.

Please direct your friend to  file an application in the prescribed form  for direction before the Controlling Authority under Payment of Gratuity Act who has the jurisdiction within the stipulated date as per statutes.  

If unsuccessful file a writ petetion under article 226/227 in the  High Court for getting justice from the  Employer and Controlling Authority.

Hello Sir,

Thanks for your valuable suggestion. Is any Security Deposit is needed to sending a legal notice? If yes then how many ammount need to Security Deposit for it. Please suggest.

Thanks in Advance

The elarned experts/members have given their valuable advice.

You may avail the services of your lawyer/law firm to represent you.

Since you were the module leader you have the first hand knowledge of the merits of the case.

Your lawyer/law firm shall draft the communications for you and defend you.

Dear Dinesh, many learneds have tendered their valuable suggestions but above all it is you who has to face the consequences.Listen to your mind and not the heart as to whether you can withstand the difficulties coming your way to ask for your right from as big a IT/software company?

Naturally if your service has been terminated without giving you chance to explain your conduct, the company has violated your right to natural justice even if they have lost millions as claimed.

Please follow Mr.Jagdish, if you have made up your mind to initiate action to get your rightful dues.

Explore all the probalities and if you are lucky enough can seek the services of any  trustful lawyer but approach him only after your administrative efforts bear no fruit.Mr. Jagdish has tendered the just and rightful advice.

Thank you Mr.Jagdish.Well done and please keep on guiding the hapless humans in the right perspective.

Regards.