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Kahnu Charan Senapati (Junior Assistant -cum-DEO)     14 December 2013

Applicability of da while calculating gratuity

Dear Sir,

          I would like to ask a question regarding the dispute surrounding inclusion of DA that was admitted at the time of retrenchment but subsequently discontinued after reemployment while calculating gratuity after my resignation from there though I was eligible for gratuity for rendering more than 5 years of continuous service.

 2.        That, I was working as a contractual employee in an establishment and at the time of retrenchment I was drawing salary in the pay scale with DA, HRA and Medicine allowance combined altogether in the form of consolidated pay. The retrenchment was all of a sudden without any notice though the contract had expired three months before at the time of retrenchment.

  3.       I was reemployed again but paid less than what I was getting before. This time not in pay scale nor any other allowance that was being paid at the time of retrenchment - just a lump sum amount. I worked for a couple of months without any contract. Later, a contract was signed predated between me and my employer with a higher lump sum pay but without any other allowances as was being paid at the time of retrenchment. I was also not paid arrear dues for the back period after re-engagement while signing the  predated contract.

      Now, I have quit the job and claimed gratuity. But claimed DA, as was provided before retrenchment, to be included while calculating gratuity.

       Under above circumstance, am I eligible to receive the DA at the same rate after reemployment as I was having before retrenchment? What are the acts and rules to refer to claim DA while calculating gratuity.

     Any help will be highly solicited.

Thanks.

Kanhu



Learning

 2 Replies

Kumar Doab (FIN)     14 December 2013

You have posed that;

“I was reemployed again but paid less than what I was getting before. This time not in pay scale nor any other allowance that was being paid at the time of retrenchment - just a lump sum amount.”

If there is no bifurcation as in appointment letter, salary slip issued to you the authority may consider this as Basic.

The establishment is under obligation to supply you the notice of determination of Gratuity with a copy to Controlling Authority and if it has not it is lapse.

You may submit FormI under proper acknowledgment.

Discuss in person with a competent and experienced labor consultant/service lawyer at your location.

 

 

 The lawyer that has seen all of your docs can advice you the best.

Sudhir Kumar, Advocate (Advocate)     14 December 2013

well advised by Mr Kumar Doab


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