Rule For Gratuity: If an employee works continuously for five years in a company, then the company will have to pay Gratuity to that employee. There are times when companies are reluctant to pay gratuity. If a company does this to an employee, what should you do in that case? What are the rights of the employees and when the company can refuse to pay gratuity.
When the company grab the money?
If the company does not pay gratuity even after rendering five years of services and not being guilty in any way. So in such a case the employee can send a legal notice against the company. Even after this, if the problem is not resolved, the employees can complain against the company to the District Labor Commissioner. If the company is found guilty, it has to pay penalty and interest along with gratuity.
When will the company not give gratuity money?
If an employee is accused of behaving unethically, due to his negligence, the company has suffered a big loss, then the company has the right to withhold your gratuity money. However, before this the company will have to present evidence and proper reasons. After this the investigation will be done.
The company cannot stop the gratuity money without any reason or for any reason. The company has to first issue a show cause notice. After this both the parties are heard. Gratuity money will be stopped only after the employee is found guilty.
Will the company not pay the full amount
if the company suffers loss due to unethical reasons or negligence of the employee? The employee is proved guilty. Even after that the company cannot stop the entire money. The company will deduct only that much money as it has suffered loss. The remaining amount of gratuity will be of the employee only.
