Delay in settlement of gratuity by employer

Ashley Anthony (Querist) 13 June 2012 This query is : Resolved
Dear Sir or Madam

I have recently quit from my job after 7& 1/2 years of service. 3rd May was my last working day and I duly filled up the Gratuity form on 3rd itself. I was told by the HR that my full and final settlement would take 45 days. I assumed this would include the Gratuity as well. Now when I asked the HR to confirm payments they say ''(Our understanding with the CnB team is that the gratuity processing begins post the FnF, which is 45 days from the last working day. There is a set procedure that the extraction of the money needs to go through and I would not recommend that the Employee base any planning for his financial needs on this for at least the next 3 months))'' I do not agree with this. Please could you confirm if the employer is doing right as it should not take more than 30 days as per the Act of 1972, How do I go about claiming my benefit at the earliest. Do I have to register a case?
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Guest (Expert) 14 June 2012

The employer has to pay the amount of gratuity within thirty days from the date it becomes payable .If not paid within the period stipulated above, employer is liable to pay interest for the delayed payment.

Since you have completed more than 5 years of service with your ex- employer and your service was not terminated and further , you have submitted the precribed form, your employer is violating the provisions of the Act. After waitng for a reasonable period,if not received payment ,you can lodge a complaint before the concerned Controlling Authority & ALC.

Ashley Anthony (Querist) 14 June 2012
Thank you MR Maitra

As advised I will wait till another 10 days and then contact the concerned Controlling Authority

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