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Sarjooram Sharma (Assistant Labour commissioner)     16 January 2010

Withholding Gratuity:-

Payment of Gratuity Act 1972- Gratuity - withholding of gratuity- not permissible under any circumstances - except as enumerated in section 4(6). Section 4(6) and 4(1) - recovery from gratuity amount - Services of petitioner not terminated but as a punishment order passed for recovery of amount and a censure entry was awarded - Therfore, none of conditions falls under Section 4(6) of Act. Amount has been worngly recovered from gratuity payable- Even if the petitioner has given an application permitting to recover from gratuity amount- Recovered amount shall be refunded. Alld. H.C - L.B. dated 07-01-2009 in W.P. no. 3744 of 2007 between Amod Prasad Rai V/s State of U.P. [2009(123)FLR202]


 2 Replies

santosh (Legal)     17 January 2010


Thanks a ton sir !!
My query is can we hold gratuity with the consent of the employee against his outstanding due’s  i.e advance taken or travel settlement.  If employee leaves the company without making settlement of his account. I would really appreciate if you can provide copy of the judgment.

Sarjooram Sharma (Assistant Labour commissioner)     22 January 2010

It is published in Factories and Labour Reports published in Allahabad.

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