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 Labour Law Update 


Gratuity Act   2001

 

1

CHIYANNA PD

 

Vs

 

KARNATAKA AGRO INDUSTRIES CORPN

 

2001(I)LLJ 967

 [HC-KAR]

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3

   

4

 

 

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AN EMPLOYEE WAS DISMISSED AND AFTER A FEW YEARS HE WAS REINSTATED UNDER SOME CONDITIONS

 

EMPLOYEE ACCEPTED THE CONDITION THAT HE WILL CLAIM NO BACK WAGES AND WILL REFUND THE SUBSISTENCE ALLOWANCE.

 

THE EMPLOYEE THERE AFTER LEFT UNDER A VRS

 

COMPANY RECOVERED SOME PORTION OF THE SUBSISTENCE ALLOWANCE FROM HIS GRATUITY PAYMENT

 

EMPLOYEE CHALLENGED THIS RECOVERY

 

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2

THERE IS NO PROVISION IN THE P.G.ACT 1972 FOR RECOVERING AMOUNTS LIKE EXCESS SIBSISTENCE ALLOWANCE PAID TO AN EMPLOYEE

 

DEDUCTION WAS UNSUSTAINABLE IN LAW

2

RAM RANJAN MUKHERJEE

 

Vs

 

MINING AND ALLIED MACHINERY CORPN

 

2001 (I)LLJ 1020

[HC-CAL]

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2

 

 

   

3

 

 

4

AN EMPLOYEE OPTED FOR VRS

 

A CONDITION UNDER VRS STIPULATED THAT ALL DUES WILL BE PAID ONLY AFTER EMPLOYEE SETTLES HIS ACCOUNT WITH COMPANY INCLUDING GIVING VACANT POSSESSION OF THE QUARTERS

 

COMPANY REFUSED TO PAY GRATUITY FOR NON VACATION

 

IS WITHHOLDING IN ORDER ?

 

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EVEN IF THE EMPLOYEE HAS EXECUTED AN AGREEMENT TO WAIVE HIS RIGHT UNDER THE ACT THE SAME IS NOT MAINTAINABLE AND GRATUITY CANNOT BE WITHHELD.

 

AN AGREEMENT TO SURREN-DER RIGHTS WOULD NOT BE ENFORCEABLE IN VIEW OF SECTION 14 OF P.G.ACT.

 

3

MATHEW

 

Vs

 

PLANTATION CORPN OF KERALA

 

2000 (II) LLJ 637 [HC-KER-DB]

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2

 

   

 

 

3

AN EMPLOYEE CAUSED SERIOUS DAMAGE TO COMPANY PROPERTY

 

AS HE WAS DUE TO RETIRE IN A FEW DAYS TIME COMPANY AWARDED HIM A PUNISHMENT SHORT OF DISMISSAL AND ORDERED RECOVERY OF DAMAGES FROM GRATUITY PAYABLE

 

IS RECOVERY FROM GRATUITY IN ORDER ?

 

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WHILE SECTION 4(6) OF THE GRATUITY ACT PERMITS RECOVERY OF DAMAGES FROM GRATUITY, THIS RECOVERY CAN BE MADE ONLY IF THE EMPLOYEE'S SERVICES WERE TERMINATED

 

SINCE HIS SERVICES WERE NOT TERMINATED THE RECOVERY FROM GRATUITY IS NOT IN ORDER