Forfeited Gratuity cannot exceed the Loss amount in case of termination of employee for causing loss to Employer’s Property

Union Bank Of India Vs Sh D.C. Chaturvedi (Delhi High Court) Section 4(6)(a) of the Act, however, provides that the gratuity of an employee, whose services may have been terminated for the reasons as specified therein, can be forfeited to the extent of damage or loss so caused. The relevant provision reads as under: “(6) Notwithstanding anything contained in sub­section (1),— (a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer shall be forfeited ...