GRATUITY MUST BE PAID WITHIN 30 DAYS OF RETIREMENT , NO NEED TO CLAIM

GRATUITY MUST BE PAID WITHIN 30 DAYS OF RETIREMENT , NO NEED TO CLAIM

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DEAR MR N. RAVI ,EX-CHIEF MANAGER PSU BANK , CLARIFYING YOU THAT GRATUITY CAN BE FORFEITED ONLY IN PROVED CASES OF DAMAGE TO BANK AND IT SHOULD BE A PART OF CHARGE SHEET ,MORE OVER WITHOUT GIVING A SHOW CAUSE NO QUESTION OF FORFEITING THE SAME ,AND SINCE YOU ARE A CRS RETIREE IT DOESN’T APPLY IN YOUR CASE --------

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Further more concrete legal points are given while filing your case to RLC--

1) No need for employees to apply for payment of gratuity: HC

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‘It must be paid within 30 days of cessation of employment’

The High Court of Karnatala has held that the payment of gratuity would not depend upon the employee filing an application before the employer demanding gratuity but it will have to be paid immediately on cessation of the employment.

The gratuity will have to be paid immediately by the employer on cessation of employment in terms of Section 4 of the Payment Gratuity Act, 1972, irrespective of the demand by the employee, the Court said. Justice M. Nagaprasanna passed the order while rejecting the contention put forward on behalf of two companies – Varma Industrial Pvt Ltd., Bengaluru, and IBC Knowledge Park Pvt Ltd., Bengaluru – that an employee is required to make application for payment of gratuity.

2)Gratuity act sec-4 and 6 clearly says gratuity can be forfeited only

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when employee causes damage ,which is not established in your case ,more over without assigning any reasons bank has not paid gratuity as on date

Section: 4 Payment of gratuity.

(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -

(a) on his superannuation, or (b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.] Explanation. : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he, was capable of performing before the accident or disease resulting in such disablement.

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned: Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.: Provided further that in the case of [an employee who is employed in a seasonal establishment and who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of seven days wages for each season. Explanation: In the case of a monthly rated employee, the fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.

(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer

(6) Notwithstanding anything contained in sub-section

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(1), - (a) the gratuity of an employee, whose services have been terminated for any act, wilful 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. (b) the gratuity payable to an employee may be wholly or partially forfeited] -

(i) if the services of 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 an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

3)Supreme court has ruled except in case of dismissed causing

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damage to bank gratuity can be forfeited ,so no question of stopping gratuity in CRS case

-- Union bank of india v/s C G Ajay babu -2018 TMI 934

Since there was no charge that the petitioner had caused a pecuniary loss to the bank, gratuity had to be paid because only where there was an allegation which was proved that a bank employee had caused pecuniary loss, that sum be recovered from the gratuity.