Gratuity entitlement

Hi

As per your statement shows that your establishment was close down under beyond the control of the employer (Financial difficulties / loss ), in this circumstance employer shall be given 60 days advance notice to the JCL (If more than 50 workers employed) and any employee working more than one year entitle to 3 months of average pay. 

If merely retrenchment, then employee entitle to get the 15 days average pay for every completed year.

You found any contravercial on cited above, your employer made the unfair labour practice will be leads to the litigation.

Thanks for your response, Arul Prasath.

However, is there any Law of the Country that forces the company to pay the above level of compensation mentioned by you above, irrespective of the Appointment Letter issued by the company during joining?

Also, Note that the Company has not closed down. But under involuntary exit (Retrenchment), is Gratuity payable as part of CTC, because I had completed only 4 years?

Dear 

Industrial Dispute act says to comply the mentioned part. If you retrench by the employer no mater payment of gratuity, subject to the natural justice to your employment, you have rights to fight against retrenchment under Sec, 2A of IDA, 1947 in front of Labour court.

Subject to the payment of gratuity against retrenchment is liablity of the employer. 

Thank you so much for the clarification.

This discussion has happenned at LCI many times.

There are many threads initiated by employees that have succeeded to get Gratuity when it is inserted in CTC at:

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

and you may also pres the key words in

Box on Right Hand Side of this page ’Search Topics & Posts’ and press ‘Go’…..

It shall be pertinent to discuss that:

If the Gratuity is not inserted in CTC then can employer decline to pay Gratuity? ::::NO.

If the Gratuity is inserted in CTC then can employer decline to pay Gratuity? ::::NO.

1. If the Gratuity is not inserted in CTC then can employer decline to pay Gratuity? ::::NO.

Gratuity, and for that matter other statutory benefits like PF,Bonus ate not benefits but statotory obligations of the employer and employer being subordinate,servant, to the law of the land and inferior to the rights of the citizens (employees) of the Republic of India has to ensure compliance to the law of the land…………..

These statutory obligations of the employer to pay Gratuity,are to be fulfilled by employer without any cost to employee…………………….

Payment of Gartuity Act provides for Compulsory Insurance for Gartuity. Some states have issued a notification also to this effect.

Let us assume that:

--- employer does not obtain such insurance…………………..even then employer shall have to mpay Gratuity from its own resources.

---employer obtains such insurance from some FI,LIC……………………….however employer can not rdcover the cost of such insurance and premia/contribution from employee…………….

---LIC or FI declines to make the payment of Gratuity due to any reason or any condition in the policy………………………. even then employer shall have to pay Gratuity from its own resources.

Another Important point is that employer can not keep a penny from payment made by LIC,FI even if the payment of gratuity as per formulae of calculation of Gratuity is lower than the amount disbursed by LIC,FI!!!!! There are judgments by the court of law validating it.

1.  If the Gratuity is  inserted in CTC then can employer decline to pay Gratuity? ::::NO.

Employer shall have to pay Gratuity from its own resources…………………..without any cost to employee.

As per Payment of Gartuity Act,Employer can provide for superior (better) terms of Gartuity.

CTC is negotiated settlement and hence promised annual/monthly payouts to bemade to employee by employer…………………..it is a promise………………………..fruit of labor………………….and can not be breached.

There are employers ………….. advisors/attorneys of employers in HR/Legal Deptts. that even include leave encashment in CTC………….

Tommorow some employers ………….. advisors/attorneys of employers may oine that employer has provided for washrooms and employe should pay for the detergent,tissue paper…………………. On the contrary employer has to provide for wahsrooms…………………….employee’s make the floor dirty by walking on it and employee should pay for cost of sweeper,disinfectant…………………………….On the contrary employer has to keep the premises clean and disease free.

This is nothing but nuisance.

That is why employees succeed against employers.

The HR personnel should rise and advise the employers that Gratuity/statutory payouts should not be made part of CTC ..........................and employers should not show bloated packages.... 

On thier part employees should form employee's unions, Works committee,GRC and affilliate with trade unions and achieve better rather proper negotiation power with employer....

Dear,

I am working in Public limited company from 2010 may 30. I wish resign from that company. as per our company a person wish to resign should submit resignation one month advance. That is why I will submit my notice of resignation on 15 th of may 2015. As per this notice my service will end only in 14 th of June 2015. That means I had 5 year and 14 days service in that company. So Iam eligible for gratuity for 5 years or not?. If the management relectant to give me gratuity then whom shall I approach.

Kindly give me an answer

Sam

Kerala

@ Samjacob,

First of all you may determine which Gratuity Rules apply to your establsihment and you::: Payment of Gartuity Act r Gartuity Rules applicable to the establishment.................and download these.

If Payment of Gratuity Act is applicable then having rendered unintrupted service of 5Y you should be eligible.

The employer has to supply the notice of Determination of Gratuity and payment within 30 days from LWD or tender interest @10%pa.

You can also submit FormI under proper acknowledgment.