16/10/2025, 6 months ago
Orissa High Court Rules That Gratuity Cannot Be Withheld or Forfeited for Loan Default Even if Employee Was a Guarantor Unless Terminated for Misconduct Under Section 4(6) of the Payment of Gratuity Act, 1972
Introduction: In a landmark pronouncement reinforcing the inviolability of employee gratuity rights, the Orissa High Court, in Cuttack Central Co-operative Bank Ltd. v. The Joint Labour Commissioner & Others, WA No.323 of 2025, emphatically held that an employer cannot withhold or forfeit gratuity to recover any outstanding loan, even if the retired employee stood as […]