Withholding of gratuity vide an undertaking
Payment of gratuity in India is regulated by the provisions of Payment of Gratuity Act, 1972 ("Act"). The Act is applicable to all factories, mine, oilfield, plantation, port, railway companies and also to every shop and establishment within the meaning of law in which ten (10) or more persons are employed, or were employed, on any day of the preceding twelve months.
Withholding of gratuity of an employee, after superannuation from service, pending disciplinary proceedings
The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused...
