#forfeiture of gratuity

Bombay High Court reinforces that forfeiture of gratuity under Section 4(6)(a) of the Payment of Gratuity Act mandates a quantified financial loss and a distinct show-cause notice, ensuring compliance with natural justice. The ruling sets a precedent that employers cannot forfeit gratuity without adhering to these procedural safeguards, impacting all gratuity forfeiture disputes under labour law.

The Gauhati High Court has ruled that employees with decades of unblemished service cannot be dismissed and stripped of gratuity based solely on unexplained stock shortages without proof of individual dishonesty or malicious intent. This reinforces the principle of proportionality in disciplinary action and protects long-serving public employees from punitive overreach absent culpable conduct.