Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Linnet star (health care)     02 August 2017

Gratuity act

Dear Sir,

I have completed continuous working of 4 years 9 months in a private company and resigned from the service. I’m told that person who has completed 4 year and 240 days continuous working in 5th year is eligible for gratuity payment

Can you guide me whether I’m eligible for the same.

If so, can you provide the supreme/ high court judgment on the same.

Your early reply shall be highly appreciated.

With regards

Sona



Learning

 12 Replies

Kumar Doab (FIN)     02 August 2017

Is your notice period over?

If employee has decided to retire from employment by notice of resignation/resignation, then employee can chose date of retirement.

 

Kumar Doab (FIN)     02 August 2017

Employee can submit FormI, 30days before LWD.

 

Refer to: THE PAYMENT OF GRATUITY (CENTRAL)

RULES, 1972-1

7. Application for gratuity:

 Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

https://labour.gov.in/sites/default/files/ThePaymentofGratuityRules.pdf

{ FomI is available at above mentioned link.}

Kumar Doab (FIN)     02 August 2017

Refer to: Payment of Gratuity Act, 1972 ;2A{(2)(a) (i) (ii)},7

https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

The Act is statue.
  
NO citation is required.

You may write to good offices of appointing authority, MD,CEO that employer  ‘Notice of Determination of Gratuity’  and its payment has not been supplied to you despite the representations in office/in person/by emails/by phone calls etc etc (as in your case)

 

Employee can Submit FormI under proper acknowledgment, and also mention as above.

Kumar Doab (FIN)     02 August 2017

It has been believed that you have been in Continuous service during the period mentioned by you, without any break.

 

Did you submit FormI?

Did employer decline to supply Notice of Determination of Gratuity and pay Gratuity, in writing?

Do you have any communication on record?

 

Kumar Doab (FIN)     02 August 2017

Has there  been any delay in your case, for submission  of FormI?

Avoid citations in your communications to employer/attorney's of employer in LIne Management/HR/Legal cells .... for the time being.

 

If employer has not paid in line with above mentioned rules/Act, within 30days from LWD employer has to tender interest @10%pa for the delayed period.

 

 

Kumar Doab (FIN)     02 August 2017

There are many highly illustrated threads on similar query at LCI e.g; 

 https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp

 

You can download FormI, Act, judgments etc etc

Reply point wise, to all points for further discussion...

 

Susen Nath   02 August 2017

Thank u Doab sir for ur such type of information. We hope in future u will like that. I personally enriched from ur information.

Linnet star (health care)     02 August 2017

Dear Sir,

Currently I’m in notice period and my last working day is on 11.Aug.17 (I will complete 4 years and 263 days and my date of joining was on 10.11.12). As informed by my management I’m not eligible for gratuity since I have not completed 5 years.

Kumar Doab (FIN)     02 August 2017

You are welcome Mr. Susen Nath.

Kumar Doab (FIN)     02 August 2017

Dear LCI Querist @ Linnet star/Sona,

Refer to: THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972-1

Payment of Gratuity Act, 1972

That are already mentioned above, alongwith applicable sections/provisions.

Employee can submit FormI before LWD and should submit under proper acknowledgment.

If employee has rendered uninterrupted/continuous service of 4Y240D/190D depending upon the establishment works for 6days/week or less than 6days/week then employee should be eligible.

The Payment of Gratuity Act, 1972 is s statue and private/inner wishes of employer/attorney’s of employer in LIne Management/HR/Legal cells do not matter.

Kumar Doab (FIN)     02 August 2017

One Perspective: You may obtain acknowledgment of notice of resignation, tender final resignation on LWD, under proper acknowledgment.

 

If you (employee) have tendered notice of resignation then you have displayed good character and given desired time to employer/ attorney’s of employer to put it’s house in order and arrange for complete/clean exit formalities and pay all dues and relieving docs on LWD.

 

You may write to good offices of employer i.e. appointing authority, MD/CEO under proper acknowledgment to supply on LWD the, acknowledgment and acceptance of notice of resignation, final resignation, correct FnF statement (showing computation of earned wages/Bonus/incentives/leave encashment/OT/reimbursements/Gratuity etc etc), payment of dues as per correct FnF statement, Form16 as per FnF statement, service certificate, relieving letter (with good comments on integrity/character/performance) ,  acknowledgment of handover of charge/assets (if any), NOC/NDC,PF number and a/c slips of each year, ESIC card, salary slips of all months, appraisals of all years  etc etc   

 

You may mention that NO tasks are pending at your end and to whom you should handover the charge/assets if any and highlight your achievements, commendations, awards/rewards, appreciations, performance etc etc and in a veiled/gentle/amiable tone that never ever any stinker/memo/SCN has been issued to you…………

 

Ensure that you get good comments in BGV ( initiated by next employer) and BGV is completed immediately and try to get a copy of it…………

After getting clean BGVwith good comments  (say within 21 days from LWD) submit FormI ( within 30 days from LWD) and mention that ‘Notice of Determination of Gratuity’  and payment of Gratuity has not been supplied to you despite the representations in office/in person/by emails/by phone calls etc etc (as in your case)

 

Try to resolve with your own skills of persuasion, persistence, reasoning, negotiations…………

 

If required involve employee’s/trade unions/Grievance Redressal Committee/Works Committee, Inspector appointed under the Act, a very able local senior counsel of unshakable repute and integrity specializing in Labor/service matters………………..

Kumar Doab (FIN)     02 August 2017

 

Another Perspective: Submit FormI under proper acknowledgment now and let employer reply in writing whatever it wants………

 

Consult your own elders of the family, competent and experienced well wishers, seasoned employee’s/trade unions leaders, a very able local senior counsel of unshakable repute and integrity specializing in Labor/service matters………………..

 And apply your own judgment on what suits you the best.

 

 

The link of other threads has already been provided to you, that has threads by employees that have succeeded with their own skills, applicable enactments, relevant judgments……………..that you can use as and when required…


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register