Gratuity of retired employees cannot be witheld

30. Oct, 2010 9 Comments

In a recent Madras High Court verdict, it was Ordered that no employer can withhold the Gratuity amount of a retired employee. The judge stated that Section 13 of the Act did not permit attachment of gratuity amount in execution of any decree or order of any civil, revenue or criminal court and added that even Section 14 of the Act provides overriding effect over other laws.

This was not a blanket order against forfeiture gratuity since Section 4 (6), the only provision which provides for forfeiture of gratuity amount to the extent of damage or loss caused to the employer, states that the money could be withheld only if the services of the employee had been terminated for willful omission or negligence.

While there exist other methods of recovery of money through civil procedures, it is not the case of an Employer that loss on account of the misappropriation or damage cannot be recovered.

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9 Responses to “Gratuity of retired employees cannot be witheld”

  1. H B Subrahmanyam 17. Sep, 2012 at 12:04 am

    In the recent Judgment Justice K Chandru of Madras High Court (Indian Bank Vs. M Azeez and nine others) had decreed that gratuity can be withheld.
    May I request you to mail the full text of the judgment as it is relevant to my own case.

  2. Praveen Kumar 18. Sep, 2012 at 8:04 am

    Dear Mr. Subrahmanyam, i shall check and revert on the judgement.

    Regards

  3. H B Subrahmanyam 26. Sep, 2012 at 7:05 pm

    Thanks

  4. sps 27. Sep, 2012 at 12:45 pm

    I AM ALSO TRYING TO GET THE COPY OF THE JUDGEMENT. I SHALL FORWARD SOON ON RECEIPT

  5. Praveen Kumar 28. Sep, 2012 at 1:24 pm

    Ok Sir.

  6. s m m rehman 15. Apr, 2013 at 4:58 pm

    Please provide any judgement of any High Court or Supreme Court of India which have been given after the order of Judgment (Justice K Chandru of Madras High Court -Indian Bank Vs. M Azeez and nine others; had decreed that gratuity can be withheld)that Section 14 of PG Act will override regulation 46(2)of bank pension regulation.

    s m m rehman
    smmrehman@gmail.com

  7. Anand Soni 18. Apr, 2013 at 2:33 pm

    Please send me copy of the judgement of Hight court or suprimecourt where its mentioned that that gratuity can not be withheld of retired employees. Please reply soon.

  8. Anand Soni 18. Apr, 2013 at 2:34 pm

    Please send me copy of the judgement of Hight court or suprimecourt where its mentioned that that gratuity can not be withheld of retired employees. Please reply soon.

    Email Id : anandsoni04@gmail.com

  9. ramesh chandra sharma 23. Sep, 2013 at 5:47 am

    please send me copy of judgement of highcourt or supreme courtwhere it is mentioned thatgratuity can not be witholdof retired employees.please reply soon email rameshchandrasharma204@gmail.com