AI Overview...
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Liability to Gratuity upon Abandonment - Employers are generally liable to pay gratuity even if an employee abandons service, provided the employee has completed the qualifying period (typically five years). Courts have emphasized that abandonment does not automatically terminate the employer's obligation to pay gratuity; the employer's primary liability remains unless explicitly nullified by law or scheme provisions. For instance, in cases where the employee's non-attendance is not deemed abandonment, the employer must still release gratuity within a stipulated period (3 months) Sujoy Kumar Roy VS United Bank of India - Gauhati, Karunakar Behera VS State of Orissa - Orissa, COCHIN PORT S. C. S. ASSOCIATION VS HARRISONS AND CROSSFIELD LTD. - Kerala.
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Legal Heirs and Claimants - Benefits under gratuity schemes can be claimed by legal heirs or nominees, with the nomination serving as an authority to receive the amount. The law of succession governs entitlement if the employee has died, and authorities like the Accountant General sanction payments accordingly R. Satyavathi vs Zilla Praja Parishad W G Dist - Andhra Pradesh.
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Abandonment vs. Termination - Abandonment of service is often distinguished from termination; mere absence does not necessarily imply abandonment unless proven intention to abandon. Courts have held that abandonment can lead to termination, but in the absence of clear proof, the employer remains liable for gratuity and other benefits. Non-attendance alone does not constitute abandonment unless accompanied by intent or conduct indicating abandonment Karunakar Behera VS State of Orissa - Orissa, HINDUSTAN TIMES LTD. VS ARUN KUMAR - Delhi, COCHIN PORT S. C. S. ASSOCIATION VS HARRISONS AND CROSSFIELD LTD. - Kerala.
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Compensation and Capital Sums - Payments made as compensation for abandonment are considered capital sums, not wages or benefits, and are payable in consideration of the abandonment of contractual rights. Such sums are not subject to regular gratuity or pension schemes but are recognized as settlement amounts for total abandonment of employment rights Commissioner of Income Tax, Nagpur and Bhandara, Nagpur VS Captain, H. C. Dhanda - Madhya Pradesh.
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Employer's Liability - Employers are primarily responsible for remitting gratuity and pension contributions, regardless of employee conduct like resignation or abandonment. Failure to discharge this liability can lead to legal repercussions, and the amount credited is based on previous service and applicable pension formulas A. Abdul Rahuman VS State of Kerala - Kerala, A.ABDUL RAHUMAN Vs THE STATE OF KERALA - Kerala.
Analysis and Conclusion:
Liability to gratuity in cases of abandonment hinges on whether the employee's conduct constitutes abandonment under applicable legal standards. Generally, unless abandonment is clearly established, the employer remains liable to pay gratuity and pension benefits. Payments made due to abandonment are often treated as capital sums, and the law emphasizes the employer's primary obligation to remit gratuity regardless of employee conduct. Beneficiaries such as legal heirs can claim gratuity benefits, and the process involves adherence to statutory procedures and sanctions.
Search Results for "Liability to Gratutity in Abandonment"
2013 0 Supreme(Gau) 618 • India - Gauhati
UJJAL BHUYAN
- Accordingly, respondents, shall release admissible gratuity amount due to petitioner within a period of 3(three) months from date ... loss visualized or possible loss - In absence of quantification in manner indicated above, Bank could not have withheld amount of gratuity ... dismissal from service imposed on petitioner - But notwithstanding such penalty, Court is of view that petitioner would be entitled to gratuity ... Likewise, the gratuity schemes may also provide differing qualifying service for entitlement to #HL....
2025 0 Supreme(AP) 38 • India - IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
VENUTHURUMALLI GOPALA KRISHNA RAO
22, 24) ... ... (C) Legal Heirs - The court emphasized that benefits under the Provident Fund and Gratuity ... The nomination only indicates the hand which is authorized to receive the amount, on the payment of which the insurer gets a valid discharge of its liability under the policy. The amount, however, can be claimed by the heirs of the assured in accordance with the law of succession governing them.” ... The Office of Accountant General has accorded sanction for payment of death-cum-retirement Gratuity, Family Pension, etc., to the....
2017 0 Supreme(Ori) 109 • India - Orissa
D.P.CHOUDHURY
Similarly under the said rules if an employee has worked for more than five years he is entitled to gratuity. ... proceeding was started during his service period, as per Rule 72 of the Code - Directions to the opposite parties to sanction pension, gratuity ... His non-attendance in the School cannot be said as abandonment of service. ... He further submitted that abandonment of service amounts to termination of service. ... When there is no family member and a person has become a liability in the socie....
1994 0 Supreme(Raj) 937 • India - Rajasthan
ARUN MADAN
- SECTION 4 - INDUSTRIAL DISPUTES ACT, 1947 - SECTION 25F - WORKMAN'S ABANDONMENT OF SERVICE - UNION'S AUTHORITY TO REPRESENT WORKMAN ... Whether the Industrial Tribunal had jurisdiction to award gratuity to the workman. 2. ... INDUSTRIAL DISPUTE - RETRENCHMENT COMPENSATION - GRATUITY - JURISDICTION OF INDUSTRIAL TRIBUNAL - PAYMENT OF GRATUITY ACT, 1972 ... Further more the work of the petitioner-management had suffered adversely as a consequence of abandonment of duties by the workman.The moot questions while arise for ....
2009 0 Supreme(Ker) 23 • India - Kerala
K.T.SANKARAN
That does not take away the primary liability of the employer to remit the amount. The University was not prepared to discharge their liability. ... The amount so credited/creditable is the proportionate pensionary liability based on the previous service; that is, the former employer should remit the Death-cum-Retirement Gratuity/ Service Gratuity and Commuted Value of the entire admissible pension reckoning the commutation factor applicable to the ... The liability is cast on the empl....
2008 0 Supreme(MP) 527 • India - Madhya Pradesh
ABHAY GOHIL, SANJAY YADAV
In one class of cases the contract persists and the amount is payable under the contract and in the other class of cases there is total abandonment of all contractual rights and what is paid is in consideration of that abandonment. ... It is submitted that the assessee had an enduring prospect because of the expertise he had but the same was abrogated because of the said restrictive covenant which neither was a device nor a camouflage to defeat the Income Tax liability. ... Dhanda [1970]76ITR404(MP) , in paragraph 29 that where the contra....
1969 0 Supreme(MP) 130 • India - Madhya Pradesh
G.P.SINGH, A.P.SEN
and the payment is made, and the payment was as compensation for loss of employment, it was a capital sum received for the total abandonment ... nbsp;There is a clear distinction between one class of cases, where the payment of compensation is in lieu of a abandonment ... We think that the damages paid under the agreement dated 27th January 1955 was a capital sum arrived at, which became payable to the assessee for the total abandonment of all his contractual rights. ... It was not now open to the Commissioner to urge that the parties had....
2016 0 Supreme(Del) 1808 • India - Delhi
S.RAVINDRA BHAT, DEEPA SHARMA
This conduct, submitted HT Ltd’s counsel, could not be overlooked and the workman’s failure or omission to seek employment, to mitigate the employer’s liability, had to be appropriately considered. ... The learned Single Judge was also of the view that no case of abandonment was made out against the workman. ... The Labour Court held that the ground of abandonment was not proved against the workman, as he had no intention to abandon service. ... Shrikant, AIR 2006 SC 2304 it was held that although laying down a provision providing for dee....
2009 Supreme(Online)(KER) 13689 • India - High Court of Kerala
K.T.SANKARAN, J
Pension - Service Duration - Kerala Service Rules - Sections of G.O. and Amendments - The court highlighted the liability of former ... Ratio Decidendi: The University's primary liability under the Kerala Service Rules to remit pension contributions was not ... That does not take away the primary liability of the employer to remit the amount. The University was not prepared to discharge their liability. ... The amount so credited/creditable is the proportionate pensionary liability based on the previou....
1982 0 Supreme(Ker) 33 • India - Kerala
M.P.MENON
Issues: The court considered whether acceptance of resignation is necessary for terminating the contract of employment, whether abandonment ... Therefore his resignation must be deemed to have been accepted by the management, subject to liability if any". ... The second question is whether abandonment of employment by the employee, not followed by any action by the employer, is sufficient to discharge the contract. ... D'Souza wrote back on 12-6-74 denying liability to account for any sum of money and requesting that ear....
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