Gratuity Rules: Gratuity is an amount which is given to any employee as a reward for his excellent services. However, an employee is entitled to gratuity only after 5 years of service. The amount of gratuity is given to the employee at the time of leaving the job or at the time of retirement on the basis of his service period. But in some situations, if the company wants, it can also stop the gratuity of the employee. Here know those mistakes which if made by the employee, he can cause a big loss to himself.
In these situations, the company will not give gratuity money
The company cannot stop the gratuity money of any employee without reason. But if an employee is accused of unethical behavior, due to his negligence, the company has suffered a big loss, then the company has the right not to give his gratuity amount.
The company has to present evidence
If the company stops someone’s gratuity, then it has to first present the evidence and the reason for it. Whatever reason the company is giving, it has to issue a show cause notice to the employee. After this, both the parties are heard. The gratuity money will be stopped only after the employee is found guilty. But even in such a situation, the company will deduct only the amount of loss it has suffered.
The company will have this right even in these circumstances
When the company or institution is not registered under the Gratuity Act, then the employees do not come under the Gratuity Act. Even in such a situation, it is the company’s discretion to give or not give gratuity.
If the company stops gratuity without any reason
Even after completing 5 years of good work, if the company does not pay him the gratuity amount, then the employee can send a notice to the company regarding this. If even after this his problem is not resolved and he is not paid the amount, then the employee can complain against the company to the District Labor Commissioner. If found guilty in the case, the company has to pay the gratuity amount along with penalty and interest.
These are the rules of gratuity
If 10 or more people work in a private or government company, then that company should give the benefit of gratuity to all the employees. On the other hand, if the employee has worked in the company for 4 years and 8 months, then his job will be considered for full 5 years and he will get the amount of gratuity as per 5 years. If he has worked for less than 4 years and 8 months, then his job period will be counted as 4 years and in such a case he will not get gratuity.
Related Articles:-
What are the major changes happening in the new Direct Tax Code 2025?
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
