Pending Disciplinary Proceedings, Can Gratuity be withheld?
Gratuity amount of the employee who is retired can not be withheld on the ground that disciplinary proceedings are pending against him or her. There is specific provision in the Payment of Gratuity act, 1972 which deals with the forfeiture of Gratuity. Pending disciplinary proceedings are not a disqualification under section 4(6) of the Act.
Gratuity becomes payable as soon as employee resigns or superannuated after completing the continuous service of five years. If employee claims his dues, you will be liable to pay and may be with interest if delayed.
Supreme Court in the case of Jaswant Singh Gill vs. Bharat Coking Coal Ltd., and Madhya Pradesh High Court in the case of General Manger (Region) Food Corporation of India vs. Ramdayal Meena, have also held in the same direction.
By Dayanand N. Mangaonkar