Amendment status not verified — confirm the current text below against the official source.
Subs. by Act 11 of 1998, sec. 2, for “one lakh”. (b) the gratuity payable to an employee 1[ may be wholly or partially forfeited]- (i) if the services of the such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes by him in the course of his employment. 2[* * *] COMMENTS (i) Gratuity can be withheld if the act for which the services are terminated has resulted in loss. The amount of gratuity withheld as damages for occupying the quarters of the bank has no connection with the conduct for which the petitioner’s services were terminated. The amount cannot be withheld from the gratuity of the petitioner; H. Rajendra Pal v. Canara Bank, 1998 LLR 419. (ii) Refusal of employees to surrender land belonging to the employer is not a ground withhold gratuity; Travancore Plywood Industries Ltd. v. Regional Joint Labour Commissioner, (1996) II LLJ 85 (Ker). (iii) The right of the employer to forfeit the amount of earned gratuity of an employee whose ser- vices were terminated for any act, willful omission or negligence causing any damage to the employer is limited to the extent of damage, with the proof of such damage and its extent being essential; Permali Wallance Ltd. v. State of M.P., (1996) II LLJ 515 (MP). (iv) The 5 years’ minimum qualifying period of service for entitlement to gratuity is in conformity with the current reality; Bakhsish Singh v. Darshan Engineering Works, 1994 LLR 81 (SC). (v) By change of ownership, the relationship of employer and employes subsists and the new employer cannot escape from the liability of payment of gratuity to the employees; Pattathurila K. Damodaran v. M. Kassim Kanju,(1993) I LLJ 1211 (Ker). (vi) An employee is entitled to gratuity at the rate of 15 days’ wages for every completed year of service in terms of section 4(2) of this Act, Binny Ltd. v. Appellate Authority, (1984) 65 FJR 21(Kant). (vii) right to gratuity is a statutory right; D.V.Kapoor v. Union of India, Air 1990 SC 1923. (viii) An employee should be regular one; Velukutty Achhary v. Harrisons, Malayalam Ltd., (1992) 2 CLR 989 Ker. (ix) An employee resigning from service is entitled to gratuity; Texmaco Ltd. v. Shri ram Dhan, 1992 LLR 369 (Del). (x) Non-acceptance of the resignation is no hurdle in the way of an employee to claim gratuity; Mettur Spinning Mills v. Deputy Commissioner of Labour, (1983) II LLJ 188. (xi) A retrenched employee is entitled to gratuity; State of Punjab v. Labour Court, (1980) 1 SCR