The Gratuity Act states that if an employee is removed from the company for willful default or damage to the property of the employer or his services are terminated due to negligence, the employer shall have the right to withhold gratuity equal to his loss. In such a case, the same amount of gratuity can be withheld as per the loss suffered by the employer.
new Delhi. Gratuity is paid to all employees of the government and private sector for working with the same company or employer for a certain period. Everyone knows this thing, but this time very few employees will know that in some conditions your employer can also refuse to pay gratuity.
Under the Gratuity Act 1972, however, every company in which more than 10 employees work, it is necessary to pay gratuity. But, if an employee is being fired from the company due to his misbehavior or giving wrong information, then the employer can refuse to give him gratuity. The Gratuity Act states that if an employee is removed from the company for willful default or damage to the property of the employer or his services are terminated due to negligence, the employer shall have the right to withhold gratuity equal to his loss.
Employer’s rights also limited
It is also not that the employer can stop the gratuity of an employee by giving just one reason. In this regard, a proper law has been made in the Gratuity Act. It clearly states that if the employer withholds the gratuity of an employee, he must first tell the valid reason and can withhold the amount of gratuity equal to the loss claimed in it.
