Gratuity Act

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?

Replies (5)

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

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

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 

Thanx Mr. Manmohan ...........

exect interpretation of law require here ...

 

 

thanks again

 

 

Regards

Madhusudan

Originally posted by : Manmohan




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 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details