Gratuity
Ravi Kumar
(Querist) 23 January 2015
This query is : Resolved
Hello Sir / Madam,
I have served a IT / ITES based company in Tamilnadu - Coimbatore for a period starting from March 2008 till Nov 2014. My resignation was accepted and was relieved from duty on November 2014 with a small farewell party hosted by the management. The company provided me the salary certificate, relieving order and experience certificate duly at the last working day with the company.
When I was relieved from duties, our HR department stated that they will pay my Gratuity amount after 30 days of my last working day with the company, which did not happened. I waited for 40 days and started following up with the HR department for the release of my Gratuity. Initially HR stated that our CEO needs to work with the company auditor regarding the gratuity of mine and i was waiting few more days, however got a response from HR stating that the CEO of the company is contemplating the forfeit of my Gratuity.
I was completely shocked and requested for a meeting with the CEO which happened recently and during the meeting CEO was claiming that they cannot release the full Gratuity and laid the reasons below:
1. During my employment with the company, in the year 2013 the management had to process a refund to a particular international client, for whom the company was offering support services. I was managing the support team at that time. CEO stated that the refund was processed mainly because of my negligence of work.
2. CEO now states that my overall performance was not satisfactory all through my tenure with the company and am unfit to deliver matching the expectations of the company.
CEO stated that they can think of paying only a portion of Gratuity and the management will withheld the portion of my Gratuity and adjust for the losses.
Am really surprised to learn such comments right after i requested for my Gratuity.
Can you experts please advise on how i should proceed further and what should i need to do at this juncture.
Thanks,
Ravi Kumar
Kumar Doab
(Expert) 23 January 2015
(A) Refer Payment of Gratuity Act 1972;Sec;4(6),
1. The refund to the client was given in 2013 (month not mentioned by you), and you were relieved in Nov,2014. No charge of loss by you was leveled by the company and no show cause notice, no domestic inquiry ,no speaking order was issued......
2. Your service was not terminated. Your resignation was accepted, and you were properly relieved.
Hence now the CEO or even owners can not forfeit the Gratuity by their whims and fancies.
(B) Refer Payment of Gratuity Act 1972;Sec;9............and lay stress on 'Word'......."WHOEVER".......(that can include this HR and this CEO)
there is a provision of penalty,punishment with jail time for whoever contravenes provisions of this Act and avoids to pay Gratuity......
If you are unable to handle on your own don't hesitate to approach employee's /Trade unions leaders who know precise ways to drill sense into the heads.........
and your able labor Law Consultant/Service matters lawyer........before you start writing and let your lawyer draft your representations...
Kumar Doab
(Expert) 23 January 2015
Submit FormI thru Redg. post alongwith covering letter narrating all representations made so far (mention dates,names of HR-CEO) and that it was stated that the payment of Gratuity shall be supplied within 30 days on dated...... the day farewell party was given to you,( if possible attach pictures), however the notice of determination of Gratuity and payment of Gratuity has not been supplied to you despite reminder by you to Mr/ms........on dated..........in person/by phone/emails etc........
You are also eligible for interest on delayed period @10%pa
Ravi Kumar
(Querist) 23 January 2015
Thanks a lot Sir.
T. Kalaiselvan, Advocate
(Expert) 26 January 2015
You are well advised by expert Mr. Kumar Doab. You may follow the suggested measure by consulting a local lawyer and proceed as per his advise or through him. Your employer cannot come out with such after thoughts at this stage, he can be dragged to court if he refuses to comply with your demand.
