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aum (n/a)     06 January 2008

Is Gratuity payable on non vacation of Company's quarter.

Is an employee of Public Sector Undertaking not vacating the Company's Quarter after retirement/separation be given Gratuity. If Gratuity is to be paid even on non vacation of company's quarter  please provide information with relevant rules and sections.


 4 Replies

aum (n/a)     26 January 2008

Very astonished that nobody has replied yet. I joined the Forum with a very good hope. 

kirankumaradv (n/a)     26 January 2008

Gratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. The non-vacation of the quarters is a different issue, whcih has to be dealt in accordance with the provisions of the public premises act.

Suman Rohlan (n/a)     28 January 2008

Dear Sir

Payment of gratuity or payment of emplolyees ful and final settlement on vacating the company provided quarter is purely based on company policies.

If company has got any legal bond before giving the accomodation to the employee, they have the rights to hold the gratuity amount.

This system s practised in some companies in india.

Thank  You


V. VASUDEVAN (LEGAL COUNSEL)     17 January 2010

 Gratuity cannot be with-held for non-vacation of the quarters. A suit for eviction has to be filed for vacation of the quarters and rent arrears. Please refer  Section 13 of the Payment of Gratuity Act.

13. PROTECTION OF GRATUITY. - No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

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