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When can an employer forfeit the Gratuity? Section 4 (6) of the Payment of Gratuity Act, 1972, permits an employer to forfeit gratuity payable to an employee in the certain circumstances. ✓ The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer' shall be forfeited to the extent of the damage or loss so caused. ✓ The gratuity payable to an employee may be whol
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