Legal Tip of the Day
Penal Rent can not be adjusted against gratuity
Gratuity is protected against attachment or forfeiture except only under certain circumstances like dismissal of an employee for moral turpitude, misappropriation , theft, violence or misbehaviour not otherwise. Reference is made to one judgement of Madhya Pradesh High Court wherein it has been held that gratuity payable to an employee can neither be withheld nor adjusted against the penal rent for his occupation of the quarter, as allotted by the employer to him and as such the High Court has rightly directed the employer to release gratuity with interest to the petitioner/employee
Regards
Deepak Miglani
Research Partner (Legal) in www.paycheck.
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