Jaswant Singh Gill v Bharat Coking Coal Ltd (2007)

Labour Law II · Gratuity — Determination, Forfeiture, Compulsory Insurance and Competent Authority

Facts.

A retired employee’s gratuity was withheld by the employer on account of a pending departmental inquiry into alleged losses.

Issue.

Can an employer withhold or forfeit gratuity otherwise than as the Payment of Gratuity Act permits?

Held.

No. The Act is a complete code; gratuity may be forfeited only on the grounds and to the extent the section allows (for negligent damage, only to the extent of the loss; for the specified misconduct, wholly or partly), and cannot otherwise be withheld.

Why it matters.

It is the authority behind the recurring “negligence-damage” problem — the employer keeps only the value of the proved loss and must pay the balance.

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