Delay in payment of gratuity
Pankaj Sharma
(Querist) 29 January 2015
This query is : Resolved
I resigned from MTNL after putting in service of 9.5 years, two years back. At the time of resignation, it was told to me that gratuity is paid to those employees only who complete 10 years of service, hence, I did not fill any form also for the same.
However, now I come to know that gratuity is paid after completing 5 years of service. I am claiming loss of interest also for delayed payment by 2 years.
But, MTNL is answering that I have not submitted the claim form, hence, it was my fault. Whether, their contention is correct or they are under obligation to process gratuity on their own and pass it to the employee. Kindly guide.
Isaac Gabriel
(Expert) 29 January 2015
The employer should disburse gratuity within 30 days of resignation/termination of job.Thereafter,as per the prevailing rule interest at the rate of 10 percent accrues.If the MTNL refuses,you can file a petition with the controlling Authority by sending 'I' form,thereafter filing case.It is the prorogative of the employer to calculate the gratuity and inform the same to the employee in advance.The employee need not submit any application and it is the bounden duty of the employer to pay gratuity.
Guest
(Expert) 29 January 2015
Well Advised by Senior Expert Mr.Isaac Gabriel
Rajendra K Goyal
(Expert) 29 January 2015
You can claim interest on the delayed period. Agree with the expert Isaac Gabriel.
Kumar Doab
(Expert) 29 January 2015
Have you written at all under proper acknowledgment and did you receive any written reply?
The payment of Gratuity to you shall be decided in accordance with extent Payment of Gratuity Rules applicable to you………………that might be either CCS(Pension Rules) or payment of Gratuity Act as per the choice exercised by you during service……..
Such legal questions have arisen in various establishments/employees that were previously under govt and later in corporations…………..
The question has been answered in many judgments e.g. following involving MTNL:
MAHANAGAR TELEPHONE NIGAM LTD VS. SHAKUNTLA REKHI
http://www.the-laws.com/Encyclopedia/Browse/ShowCase.aspx?CaseId=108002697100
You may go thru it.
If payment of gratuity Act is applicable in your case then employer is bound to supply you the notice of determination of Gratuity and payment of Gratuity even if no application is made by employee……..
Once you affirm which rules shall apply to you then I will post further if delay is the bone of contention and needs to be condoned.
Pankaj Sharma
(Querist) 30 January 2015
Thank You much Mr. Gabriel, Mr. Rajkumar, Mr.Goyal and Mr. Doab sahab.
Doab Sahab, I am covered under Payment of Gratuity Act.
Kumar Doab
(Expert) 30 January 2015
Payment o Gratuity Act 1972: Sec;4,7,9
http://labour.gov.in/upload/uploadfiles/files/ActsandRules/SocitySecurity/ThePaymentofGratuityAct1972.pdf
It has already been posted that in case you are covered by Payment of Gratuity Act 1972 then employer has a responsibility to supply the notice of determination of Gratuity and payment of Gratuity within 30 days and is liable to tender interest @10%pa for the delayed period.
The wavering response to you by the concerned personnel of the corporation is as they have sensed that You are not properly informed and probably have been transacting verbally only with them.
NO one in your previous corporation would like to be held responsible for the delay and hence they are dumping you with varying statements.
You should have submitted the minutes of discussion in writing under proper acknowledgment,…. of each visit and concluded that on dated……….Mr/Ms………………..stated to you in office that you are not eligible for Gratuity since…………..and on dated changed the response that you will not get payment of Gratuity since………etc………………..If possible you should have recorded the meeting (audio/visual/witnesses/ minutes etc)………You can do it now also……………..
You may submit FormI with covering letter addressed to good offices of appointing authority, MD,Chairman, Board …………of course under proper acknowledgment……………narrating that notice of determination of Gratuity and payment of Gratuity was not supplied to you within 30 days, despite repeated representations by you in person in office and during each visit misleading response was given to you and request the good offices to fix responsibility on the concerned personnel (with a copy to you) and issue orders (with a copy to you) to release the payment of Gratuity to you immediately by payable at Par cheque/bank DD and supply it by Redg. Post only so as to reach you in say next …7 days…………….
If required you may follow up thru RTI.
The Sec;9 provides for penalty Rs.20000/, punishment with jail time to ‘ANYONE’ that contravenes the provisions of the Act and avoids to pay Gratuity…….
The delay is on the part of Employer and not you……..
You can also seek support from employee’s unions and Director on Board from employee’s side……
Assuming that you fall in the trap and/or IN CASE THERE IS DELAY BY EMPLOYEE THE EMPLOYEE CAN COUNT ON THE LANDMARK JUDGEMENT BY PUNJAB AND HARYANA HIGH COURT IN THE MATTER OF :
Senior Superintendent of Post Offices. Hoshiarpur Division, Hoshiarpur
……PETTIONER
Versus
Shri Avtar Singh and others
……RESPONDENTS
http://ruralpostalemployees.blogspot.in/2009/08/landmark-judgment-of-honble-high-court.html
Kumar Doab
(Expert) 01 February 2015
The rightful claim of the gratuity cannot be defeated on the ground of technicality such as limitation.
Jharkhand High Court
Ms Mmtc Mica Division Minerals And ... vs Sri Sajjan Kumar Bhudolia And Ors on 22 April, 2014
http://indiankanoon.org/doc/92838295/
22.................As regards the contention of delay, the controlling authority as well as appellate authority held that the rightful claim of the gratuity cannot be defeated on the ground of technicality such as limitation.
Isaac Gabriel
(Expert) 01 February 2015
The citations uploaded at this thread are very useful to the Labour Law practitioners.Thanks a lot to expert Kumar Doeb.
Kumar Doab
(Expert) 02 February 2015
Dear Mr.Gabriel,
You are welcome.
