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Pritesh Doshi (Sr. Manager)     08 October 2013

Gratuity and notice period

I joined my present company on 04th May 2009. As per company policy employee has to serve 4 years 190 days to be eligible for receiving gratuity. As per this my last date should be 11th Nov 2013 to be eligible for receiving gratuity.

I put my papers on 27th Jul 2013. As per 90 day notice period my last working day is 21st Oct 2013. Now I am falling short by 16 days to be eligible for receiving gratuity. I also have 31 days PL (Previlaged leaves) balance. 

I discussed this with HR team in my present company and requested them to change my last date to 11th Nov 2013, so that I will be eligible for gratuity. They rejected my request and said your last date can not be changed and you will not be eligible to receive gratuity. 

As per the CTC, the gratuity is part of our CTC in my present company. So in principle it is my hard earned money which they are rejecting to pay me even though I am willing to complete the necessary period of 4 years and 190 Days. 

Unfortunately, when I put papers I did not do the necessary calculations for gratuity period. 

Can I legally force my present company to change my last date to 11th Nov 2013 or request them to make partial payment at least?

Your earliest response will be appreciated.



Learning

 3 Replies

Kumar Doab (FIN)     09 October 2013

 

 

You can withdraw the resignation before expiry of notice period.

 

 

You can submit notice of resignation again.

Company can not accept resignation before expiry of notice period.

Employee can tender notice of even more than notice period stated in appointment letter.

Your understanding of CTC and gratuity is correct.

Is this company a privileged one that it has kept the notice period at 90 days………………

You are v generous and have tendered such a long notice period of 90 days.

HR is not your employer. It is just another employee in the company.

Prefer to transact by redg. post with good offices of appointing authority, MD/CEO, company secretary, and keep acknowledgment and copy of all relevant record.

 

However visit a local labor consultant/service lawyer along with copies of all of your docs ………… and proceed under expert advise of your lawyer………………………………The lawyer that has seen your entire docs and has analyzed your inputs can advise you the best.

Pritesh Doshi (Sr. Manager)     10 October 2013

Dear Kumar, Thanks a lot for your response. I did discuss this with my immediate manager. He discussed with with the Vice President of our company. As per the information given by my immediate manager, the Vice President of our company has rejected my request to extend my notice period till 11th Nov.

After this I did write an email to him requesting to reconsider his decision looking at the 4 years and 6 months of my honest service and my effort in this organization. Also I explained him the importance of the gratuity money to me. As of now I have not received any email response from him.

If I withdraw my resignation and resubmit it, do I need to serve the 90 day notice again?

As suggested by you I will go and consult a lawyer in Bangalore. Do you know any good lawyer in labor laws in Whitefield area in Bangalore?

Thanks

Kumar Doab (FIN)     10 October 2013

 

You could control the temptation to write till you consulted your lawyer.

 

 

Employee should always exercise restraint and should not act in haste and should always consult before hand and should always help from competent personnel/elders/lawyer/law firm/trade union leaders to structure and draft their representations, and build a favorable record and keep acknowledgments.

PL shall be encashed in FNF statement/settlement.

If you withdraw your resignation and tender notice of resignation again and company chooses to terminate you should be able to plea that it was with malafide intention to avoid payment of Gratuity.

 

Payment of Gratuity Act, 1972:Section: 4: Payment of gratuity;

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.

If the employer wishes it can disburse the payment of Gratuity even if you don’t serve 190 days in 5th year (including off days/holidays/approved leave………………etc) or an equivalent to Gratuity in other form e.g; Tax Free Ex.Gracia………………..

However you can not claim it a matter of right.

If you requested to extend the notice period by verbal request and the VP declined verbally thru manager then you can look at other options.

You can approach good offices of appointing authority, MD……………Company Secretary…………………..the good offices may allow to extend the notice period or pay Gratuity etc……………….

Employee should apply rapport, goodwill, exceptional levels of reasoning, persuasion, persistence, negotiation, flexibility, adaptive skills and resolve the matter in his favor while in employment.

Employee should also retain access to a competent labor consultant/service lawyer and approach lawful authority if all efforts for amicable settlement have been thwarted and frustrated by employer and its line managers/HR.

The company must have taken compulsory insurance from LIC or approved FI or it might be having its own approved trust to manage the Gratuity and should have tendering monthly contributions to your Gratuity account. (Gratuity Contribution is shown in CTC sheet………………….…)

After 4Y190days it has to just obtain payment from Gratuity fund and disburse to employee.

( The company may disburse the amounts as per formulae of calculation of Gratuity,……………………however employee can rightfully claim entire amount paid by LIC which  should be higher than as calculated by formulae………….Kerala High Court:Nedupuzha Service Co-Operative ... vs K.Rugmani,

 

https://www.indiankanoon.org/doc/77470836/

Thus you may inform all of your colleagues as well to claim balance payments from their employers.)

 

If you withdraw the notice of resignation and resubmit then you have to tender notice or notice pay in lieu of it as per contract of employment/appointment letter issued to you/ standing orders applicable to the company (certified/model) and extended to your designation………………………….

Notice period is part of service conditions and service conditions (e.g notice period) stated in standing orders can not be negated to employee in appointment letter. Service conditions stated in standing orders shall prevail upon appointment letter.

The state Govt. of Karnataka has ended by notification the blanket exemption granted to IT/ITeS/BPO companies from Standing Orders (kudos to IT employee’s unions) and all IT companies were directed to submit draft standing orders within Dec2012, for adhering to the process of certification and finally certification by Mar2012.

Till then Model Standing Orders shall apply. Notice period as per Model Standing Orders is 1 month.

You can find out if your company submitted its draft standing orders or not? Apply your resources in company discreetly or the CO (Certifying Officer/ DLC) in O/o Labor Commissioner at Bangalore can confirm and even provide a certified copy.

Notification and Model Standing Orders are attached.

The company may try and claim that you are not covered as ‘ Workman’ as in ID Act, Model Standing Orders, ‘Employee’ as in Karnataka Shops and Commercial Establishments Act.

It may scream that T&C as stated in appointment letter shall apply.

Much related to IT/ITeS/BPO/KPO and now new term coined by KEA for KPO i.e KPM are all imported ideas……………………including the HR practices in the name of Global practices……………………….

Their contentions may not necessarily be true and may not be accepted by a lawful authority.

It may also apply tactics. You must remain gentle, amiable, and retain your composure.

Your manager is good and you should retain his support.

However let your lawyers ask you a set of structured questions and he may opine that you shall be covered.

Notice period is also stated in Shops and Commercial Establishments Act of the state. It is 1 month in this enactment of almost all states, whose enactment is read by us………….

Longer notice period is obviously for the benefit of employer.

There are threads to indicate that Labor commissioner pointed out notice period as stated in this enactment 1 month shall be valid and 3 months as in appointment letter can be termed void…………..

https://www.lawyersclubindia.com/forum/Employer-not-relieving-employee-contt-89308.asp#.UkP5C9KAqWM

 

Karnataka Shops and Commercial Establishments Act are attached.

You can download these enactments, judgments from Dept of labor website/Google/IndiaKannon or buy from market.

You have to search for your lawyer on your own.

If you wish to avail the services of LCI labor consultant/ service lawyer you can conduct search at;

https://www.lawyersclubindia.com/lawyers_search/#.UlZNqtKAqWM

The LCI is displaying the list of related lawyers at the bottom of this web page.

You can Chat with and access Pro Lawyers.

Your colleagues, friends, well wishers, near and dear ones, elders, trade union leaders can also guide you to a competent and experienced labor consultant/ service lawyer.

The IT employees have united. Be their member. Share what they have what you can contribute. Ensure that Standing Orders without any change in basic fabric of IESO (Industrial Employment Standing Orders Act) is implemented.

Employees are a big community and vote bank. NO govt. especially in today’s era of Coalitions can offend the vote bank of employees.

These groups have succeeded in many matters. They may help you and your collective efforts may fetch you some relief.

https://www.itecentre.co.in/

Contact Us

Please contact us on
mail id : contact@itecentre.co.in.
ph : 9620907912

Please Join ITEC group for discussion among IT-BPO employees. To join the group, please send a blank mail to itec_bangalore-subscribe@yahoogroups.com

https://ithiworld.wikispaces.com/News+Update

ITHI, a forum
of women employees in IT and ITeS

 

 

 

IT/BPO Voice of India | Facebook

CBPOP (Centre for Business Process Outsourcing Professionals’)

 

www.unitespro.org

https://www.wbitsa.org/

 

www.itpfindia.org/

 

 

 The IT employers in your state are already united: KEA: Karnataka Employees Union. Their attempt is to amend IESO to their benefit. Unite and don’t let it happen.

 

 

It is reiterated that you should consult your lawyer.


Attached File : 795159135 karnataka shops and commercial establishment act.pdf, 795159135 model%20standing%20orders.doc, 795159135 nedupuzha service co-operative ... vs k.rugmani,aged 59 years on 30 may, 2011.pdf downloaded: 204 times

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