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sanjeev   30 November 2016

Employer not releasing gratuity

Hi, if anyone can help.. i worked with an IT MNC, in noida (100 employee strength) for close to 4 years and last year only they stared gratuity concept, my question is if i quit before completing 5 years, can they hold my gratuity and claiming that employee must complete 5 years in same company, only then they release. how can i challenge my employer?



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 16 Replies

Kumar Doab (FIN)     30 November 2016

The IT companies are covered by Shops & Estbs Act.

The details have been discussed in another thread initiated by you at:

 

https://www.lawyersclubindia.com/forum/Clause-for-medical-leave-at-notice-period-142109.asp

Kumar Doab (FIN)     30 November 2016

Refer:

THE PAYMENT OF GRATUITY ACT1972. ACT NO. 39 OF 1972

Sec:3

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

 

If the establishment as per the section cited above was covered 4 years back or in last 4 years then it has to pay gratuity to all eligible employees. 

Kumar Doab (FIN)     30 November 2016

Sec;2A(2)(a);

Sec;4(5)

If you have worked for nearly 4 years then also employer can pay by its sweet will.

 

Ms.Usha Kapoor (CEO)     01 December 2016

According to section 3 of Payment of Gratuity  Act if you put in a continuous period of work for  4 years in an establishment you can claim gratuity.This is inclusive of leaves and holidays.Would you give me profile likes in exchange for free legal advice?

Kumar Doab (FIN)     01 December 2016

Dear Ms. Usha Kapoor,

The Sec:3 and even NO other section in the Act lays down 'if you put in a continuous period of work for  4 years in an establishment you can claim gratuity.'.

 

"According to section 3 of Payment of Gratuity  Act if you put in a continuous period of work for  4 years in an establishment you can claim gratuity.This is inclusive of leaves and holidays.Would you give me profile likes in exchange for free legal advice?"



 

 

Samarpan (M)99958670740 (Free legal advice and legal aid cell)     01 December 2016

An employee is entitled to gratuity if he comes within the definition of employee and has completed 5 years continuous service (exception to disabled persons or death of employee).  In the last year, if he completes 240 days, it deems to be continuous service.

Samarpan (M)99958670740 (Free legal advice and legal aid cell)     01 December 2016

It does not have any relation when your employer introduced Gratuity scheme in the organization.  Empoyee must have completed 5 years of service.

Kumar Doab (FIN)     01 December 2016

As per the Act and sections posted above : If the establishment works for 6days/week or less than 6days/week................and employee has worked for 240/190days in a year then if employee separates in 5th year , then employee is eligible.

sanjeev   01 December 2016

As per gratuity act,

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

 

gratuity is payable after completing 5 years so means i completed near 4 years, i cannot demand gratuity?


 

Kumar Doab (FIN)     01 December 2016

As per some threads at LCI also: IT companies are knwon to provide Gratuity even for 2years by their sweet will.

Employer can provide better terms of Gratuity, as already cited above.

 

What is stated in Gratuity Rules of your establishment?

Being a HR professional you must be aware! 

 

 

sanjeev   01 December 2016

my IT employer want save cost, so they say only after 5 years you get gratuity. My current employer does not have any gratuity rules for employee. As an HR we just put "gratuity as per Gratuity rules" in appointment letters..

Kumar Doab (FIN)     01 December 2016

You have posted that:

 

"As an HR we just put "gratuity as per Gratuity rules" 

 

What and which Gratuity Rules?

Apparently it points to some purported Gratuity Rules of the establsihment!

It has already been clarified that : 'Employer can provide better terms of Gratuity'!

So post the extent Gratuity Rules here.



 

 

sanjeev   01 December 2016

yes nothing beyond that statement which means for more details refer Govt Gratuity act.. We dont have any guidelines. Now tell me in that case is this mandate for employer to release gratuiry after 5 years only..just asking a simple question.

Kumar Doab (FIN)     01 December 2016

Don't put words in anybody's mouth.

"gratuity as per Gratuity rules" points to some purported Gratuity Rules of the establsihment!

 

( It is for your benefits)

Otherwise clear statement should be "gratuity as per Payment of Gratuity Act".

 

As per the Act as already cited above, the employer can still pay as per its sweet will.

 

As per the Act as already cited above; employer can subject it to sec;2A, and deny it to you.

 

 

 


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