Under the gratuity provisions of the Code on Social Security, 2020, where an employee's services are terminated for riotous or disorderly conduct, or for any act constituting an offence involving moral turpitude committed in the course of employment, his gratuity may be:

The gratuity provisions under the Code on Social Security, 2020 (mirroring Section 4(6) of the erstwhile Payment of Gratuity Act, 1972) provide that the gratuity payable to an employee may be wholly or partially forfeited if his services have been terminated for riotous or disorderly conduct or any other act of violence on his part, or for any act which constitutes an offence involving moral turpitude, provided such offence is committed by him in the course of his employment. This is distinct from the separate forfeiture ground for damage or loss caused to employer property through wilful act, omission, or negligence, where forfeiture is limited strictly to the extent of the damage or loss caused. Crucially, such forfeiture is not automatic - employers must conduct a proper inquiry affording the employee an opportunity to be heard, and courts have held that a conviction is generally required for forfeiture on the moral-turpitude ground.