Criminal Conviction Necessary For Forfeiture Of Employee's Gratuity: Delhi High Court

The Delhi High Court ruled that an employee's conviction for a serious offence justifies the forfeiture of their gratuity. In this case, the employee had been convicted of criminal misconduct, leading the employer to withhold gratuity payments. The court upheld this decision, stating that an employer is entitled to withhold gratuity in cases where an employee's actions bring disrepute or financial loss to the organization. The ruling aligns with labor laws that allow employers to forfeit benefits in cases of employee misconduct.