Many industrial conglomerates in India, such as Tata, Birla, Reliance, NTPC, and those in sectors like fertilizers and oil refineries, offer accommodation to their employees within company-owned residential townships during the course of their employment. This provision is seen as a valuable perk, enhancing the well-being of employees and fostering a sense of community within the organisation.
However, the arrangement comes with a clear stipulation : once an employee retires, it is their responsibility to vacate the provided accommodation. Despite this, there are numerous instances where employees, or their family members after the employee’s death, fail to vacate the premises. This creates a challenge for employers, who must then take steps to reclaim company property.
To address such situations, companies typically resort to a very commonly adopted approach of withholding the employee’s full and final settlement, which includes their gratuity and other benefits. By leveraging financial entitlements, companies try to apply pressure on the concerned...
