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PAYMENT OF GRATUITY SOME ISSUES

Other Topics - By: - Mr.M. GOVINDARAJAN - Dated:- 17-6-2016 - The Payment of Gratuity Act, 1972 provides for paying gratuity to retired/resigned employees. The Act and the rules provide the procedure for the payment of gratuity. In this article issues arised in this regard are discussed. Adjustment against loan taken The gratuity payable to the employee is fully protected. It is free from court attachment. In Yada Laxmi V. A.P. State Co-operative Bank, Hyderabad - 2005 (12) TMI 568 - ANDHRA PRA .....

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attachment or adjustments of gratuity, the bank is not entitled to adjust the same towards repayment of loans etc., Notice pay cannot be deducted In case of resignation by the employee he is to give 3 months notice to his employer indicating his intention to resign from his present job. If the employer wants to terminate the service of an employee before his tenure period, he is to give 3 months notice or recover the three months salary in lieu of notice. Such amount could not be deducted from t .....

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employer s company and initiated disciplinary proceedings, which were conducted in the absence of the employee, since he did not respond to the notice. The employer deducted three months notice pay from the gratuity amount and leave encashment payable to the employee. The employee challenged the same. The High Court held that Section 4(6) read with Section 13 prohibits any recovery from the gratuity except as provided under the provisions of the Act. An employer cannot be permitted to recover th .....

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tion restraining the employer from payment of gratuity to an employee. In Ramwati V. Krishna Gopal - 1987 (10) TMI 373 - DELHI HIGH COURT it was held that if the gratuity is payable to the employee then it is not liable to attachment. But if the employee is dead, obviously the gratuity cannot be deemed to be payable to the employee. If the said gratuity becomes payable to the heirs of the employees, obviously the same becomes attachable in the hands of the employer as the employer is not legally .....

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ed as a Manager on 1.4.76 and retired voluntarily as a director of the company on 30.06.1996. The company admitted liability for gratuity for the period up to1.4.84 when he worked as Branch Manager and General Manager and not for subsequent period when he worked as Director. The Controlling Authority and Appellate Authority granted the whole claim after observing that the designation of the respondent as a Director did not put him in overall control of the company. There was no substance in the .....

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ayment of Gratuity Act, 1972 defines, employee wherein it is specifically provided that the employee does not include any such person who holds a post under Central Government or a State Government and is governed by any other Act or Rules providing for gratuity. Section 2(e) thus takes out from the purview of the said Act a person who holds inter alia post under Central Government and whose terms and conditions of services are governed by the Act or Rules providing for gratuity. Gratuity payabl .....

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