An employee is retired on attaining the age of superannuation.After retirement,it was noticed that he had misappropriated travelling allowance drawn by him & employer decided to deduct the misappropriated amount from gratuity payable.
Please reply me that, can employer do so?
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 13 January 2011
If you are covered by payment of Gratuity Act, 1972 employer can not do so, however if you company has framed separate Gratuity scheme in such a case the act is not applicable on you so in such case better check scheme deed and standing order
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 13 January 2011
Dear manmohan
As far as my knowledge is concern as per gratuity act 1972, the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
However Misappropriation falls under this condition or not is still doubtfull.
if it is, then employer can forfiet the amount of gratuity to the extent of lose cause to him.
Pls check and revert
Regards
Madhusudan Kabra
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 13 January 2011
| Originally posted by : Madhusudan Kabra | ||
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Dear manmohan As far as my knowledge is concern as per gratuity act 1972, the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused. However Misappropriation falls under this condition or not is still doubtfull. if it is, then employer can forfiet the amount of gratuity to the extent of lose cause to him. Pls check and revert Regards Madhusudan Kabra |
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Agree but is service is not terminated due to such theft , the theft is discovered after his retirement so i will request yoy to read section 4(6) of Payment of Gratuity Act, 1972 properly
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 13 January 2011
Thanx Mr. Manmohan ...........
exect interpretation of law require here ...
thanks again
Regards
Madhusudan
Rahul Sharma
(Student + A.M.- Finance)
(2530 Points)
Replied 13 January 2011
| Originally posted by : Manmohan | ||
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Originally posted by : Madhusudan Kabra Dear manmohan As far as my knowledge is concern as per gratuity act 1972, the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused. However Misappropriation falls under this condition or not is still doubtfull. if it is, then employer can forfiet the amount of gratuity to the extent of lose cause to him. Pls check and revert Regards Madhusudan Kabra Agree but is service is not terminated due to such theft , the theft is discovered after his retirement so i will request yoy to read section 4(6) of Payment of Gratuity Act, 1972 properly |
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