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Forfeiture of gratuity - Payment Of Gratuity Act(1972), Industrial Laws Video Lecture | Industrial Laws - B Com
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FAQs on Forfeiture of gratuity - Payment Of Gratuity Act(1972), Industrial Laws Video Lecture - Industrial Laws - B Com
| 1. What is forfeiture of gratuity under the Payment of Gratuity Act (1972)? |  |
Ans. Forfeiture of gratuity refers to the loss or deduction of gratuity that an employee is entitled to receive under the Payment of Gratuity Act (1972). It occurs when an employee has committed certain acts of misconduct as specified in the Act, such as causing damage to the employer's property or engaging in disorderly behavior at the workplace.
| 2. What are the grounds for forfeiture of gratuity? | |
Ans. The grounds for the forfeiture of gratuity under the Payment of Gratuity Act (1972) include willful damage to the employer's property, causing financial loss due to dishonesty or negligence, engaging in disorderly behavior, and committing an offense that results in the employee's conviction for a moral turpitude-related offense.
| 3. Can an employer forfeit the entire gratuity amount of an employee? | |
Ans. No, as per the Payment of Gratuity Act (1972), an employer cannot forfeit the entire gratuity amount of an employee. The Act specifies that the maximum amount that can be forfeited is the gratuity amount equivalent to the employee's wages for a period of up to three months.
| 4. Is there a legal procedure for forfeiting gratuity? | |
Ans. Yes, there is a legal procedure for forfeiting gratuity under the Payment of Gratuity Act (1972). The employer must provide a written notice to the employee stating the grounds for the proposed forfeiture. The employee should be given an opportunity to present their case before an authorized officer, who will make a decision regarding the forfeiture.
| 5. Can an employee challenge the forfeiture of gratuity? | |
Ans. Yes, an employee can challenge the forfeiture of gratuity if they believe it to be unjust or unfair. They can approach the appropriate authority, as specified in the Payment of Gratuity Act (1972), to file a complaint against the employer's decision. The authority will conduct an inquiry and make a final decision based on the facts and evidence presented.
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