The Supreme Court said gratuity money of an employee can be withheld and forfeited in case of recovery of dues such as overstaying in official accommodation.

Can a company stop gratuity?

An employer cannot deny gratuity to the employee on the ground of limitation. No doubt, there is a specified period of 30 days for an employee to file a notice to the employer but a claim for gratuity will never be invalid solely because it was not presented within the specified time.

Is it mandatory to pay gratuity?

As per the government laws, it is mandatory for employers to pay the amount of gratuity within 30 days. However, if there is a delay in the payment of the gratuity, then the employer has to pay simple interest on this amount from the due date till the date of payment.