An orderly pursuit

Laws governing eligibility for gratuity, its forfeiture for misconduct, post-retirement inquiries, and corresponding withholding of the benefits should be streamlined to restrict the arbitrariness in the system

- RAAVI BIRBAL

Gratuity is a gratuitous pay'ment made for an employee's longterm service. The Payment of Gratuity Act, 1972, governs gratuity and is applicable after five years of continuous service. The statute prescribes the calculation for the same as well as the cap up to which the amount has to be limited. However, better benefits, such as gratuity for fewer years of service or higher amounts than the cap, can always be given.

As per Section 4(6) of the Payment of Gratuity Act, 1972, the gratuity of an employee whose services have been terminated for any act, wilful omission, or negligence causing damage, loss, or destruction of the employer's property can be forfeited to the extent of the damage or loss. The gratuity payable to an employee may be wholly or partially forfeited if an employee's services are terminated for riotous or disorderly conduct, violence, or an act constituting an offence involving moral turpitude, provided the offence was committed in the course of employment.