The Apex Court, vide its order dated December 15, 2020, in
Steel Authority of India Limited vs. Raghbendra Singh &
Ors
1, propounded that there does not exist any
constraint regarding withholding an employee s gratuity against
the recovery of dues from such employee, including penal rent,
which in the instant case pertained to the overstay by the employee
in official company provided accommodation.
Gratuity is a lump sum amount payable by an employer to an
employee, as a sign of gratitude for the services rendered by the
latter during the course of his employment. The respondent, in the
present case (the employee), was initially appointed as a Work