Forfeiture of gratuity does not require criminal conviction as a prerequisite

 If the emplyoee is termination fpr misconduct which constitutes an offence involving moral turpitude gratuity can be forfeited . Supreme court

Supreme Court of India

Western Coal Fields Limited vs Manohar Govinda Fulzele 

on 17 February, 2025

The Supreme Court held that a criminal conviction is not a prerequisite for forfeiture of gratuity under Section 4(6)(b)(ii) of the Gratuity Act. The Court clarified that where a departmental inquiry concludes that the misconduct constitutes an offence involving moral turpitude, forfeiture of gratuity (in whole or in part) is permissible. 
On the facts, because the employee had obtained his employment by fraud (forged certificate / mis‐statement of age), the Court upheld forfeiture of the entire gratuity in his case.

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