Employer can forfeit gratuity for moral turpitude: SC

In a significant ruling, the Supreme Court has held that a criminal conviction is not a prerequisite for the forfeiture of gratuity under the Payment of Gratuity Act, 1972.

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The judgment establishes that gratuity can be forfeited if an employee's misconduct itself constitutes an offence involving moral turpitude. A bench comprising Justices Sudhanshu Dhulia and K Vinod Chandran clarified the legal position while examining whether gratuity can be forfeited upon termination due to misconduct constituting an offence involving moral turpitude, even in the absence of a criminal conviction. The court answered affirmatively, ruling that a conviction in a criminal proceeding is not necessary for forfeiture under the Act.