Employers Can Withhold Gratuity for Loss Caused by Employee; Disciplinary Rules to Prevail over Gratuity Act: Calcutta High Court

The Calcutta High Court has delivered a significant ruling clarifying the relationship between the Payment of Gratuity Act, 1972 and disciplinary service rules governing senior managerial employees. A Division Bench comprising Justice Lanusungkum Jamir and Justice Rai Chattopadhyay held that the Payment of Gratuity Act does not override disciplinary rules which permit withholding or forfeiture of gratuity where an employee has caused pecuniary loss to the employer due to negligence…