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Dipil Kumar Vasu (Safety Professional)     25 September 2012

Regarding gratuity upon completion of 4 years and 11 months

 

Respected forum members,

I have gone through many discussions on various forums regarding the subject matter and reading comments supporting yes as well as no…

I am stucked up in such a situation now… I am leaving my present employer upon completion of 4 years and 11 months… DOJ was 01.11.2007 & Date of Relieving is 29.09.2012... The company is saying that they will pay gratuity only upon the completion of 5 years… The company claims that as per Payment of Gratuity Act and Rules, 1972, 240 days of service shall be considered as a continuous service for the year only in the case of death…

What is the actual fact…? Is there any possibility as per gratuity rules for me to get gratuity... How can I convince my company for getting me the gratuity?

Kindly suggest/help me in this matter…

Thanks in advance...

Dipil Kumar Vasu

Safety Professional

dipilkumar@gmail.com



Learning

 16 Replies

M.S.R.Murty ( Manager (Admn))     26 September 2012

Dear Vasu ji,

As per the Act, you should have complete 5years tenure for getting gratuity. 4 years 11 months service is not eigible to get Gratuity. If the service is 5 years 11months, then the service period would be 6 years for calculation .

But in place of the same, workmen compensation 15 days per annum can be claimed.  This is also not being observed by some states since Court judgements not favoured to this claim.   However,better ro approach Labour Deaprtment.

Kumar Doab (FIN)     26 September 2012

HC and SC judgments are enclosed. As per these you are eligible.

The person who has stated as posted by you and given below may be asked to go thru the act carefully.

The company claims that as per Payment of Gratuity Act and Rules, 1972, 240 days of service shall be considered as a continuous service for the year only in the case of death”

 

Section: 4
Payment of gratuity.

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

 

You may submit the FormI to good office of your appointing authority and Controlling Authority of Gratuity which may be ALC in your case under proper acknowledgment from both.


Attached File : 278772477 13 13 gratuity 20 20madras 20hc 20judg 5b1 5d 1 .pdf, 278772477 surendra kumar verma etc vs the central government ... on 23 september, 1980.pdf downloaded: 1193 times

SURESH GODBOLE (ADVOCATE)     27 September 2012

The above

                  Sec 4  is completely out of context

                  If Mr Dipil Kumar is being terminated due to  disablement , then it may apply

                  OTHERWISE ITS NOT APPLICABLE

                  Its really strange that you cannot complete one more month for getting your Gratuity

 

               CAN YOU EXPLAION THE PRESSING AND UNAVOIDABLE REASONS

               Is there any provision of Waiver from the Employer or Waiver may be applied due to unavoidable circumstances under which you may not be able to complete one more motn , from 1/10/2012 to 31/10/2012 , and so authorities may waive this condition .

              Payment of Gratutity on completion of less service is no bar , but payment on completion is binding on Employer .

             Thus in special circumstances waiver can be done , if its given in the ACT its good

             OR THE APPLICANT WILL RESORT TO PRINCIPLES OF NATURAL JUSTICE  TO GET JUSTICE FROM THE COURT OF LAW AFTER HIS APPLICATION IS REJECTED BY THE EMPLOYER .

Dipil Kumar Vasu (Safety Professional)     27 September 2012

Dear All Respected Members

Thanks a lot for the reply and help me in brining clarity on the issue...

Dipil Kumar Vasu (Safety Professional)     27 September 2012

Really it's a critical situation...Still 50-50...

Thanks for the suggestions... However I am not going for a legal fight with the company... With all the facts gathered from these discussions and discussions in other forums, surely going to give a formal request to the management... If they give it's ok, or else!!!

Once again thanks....

Kumar Doab (FIN)     28 September 2012

Submission of Form I is not litigation.

You may submit the FormI to good office of your appointing authority and Controlling Authority of Gratuity which may be ALC in your case under proper acknowledgment from both, with a covering letter and mention that the reply be supplied to you by redg/speed post and for this purpose a self addressed postage prepaid envelope is enclosed. Let them reply to you by redg/speed post.

The judgment by HC and SC has already been attached. You have worked for more than 240days in the fifth year. The calculation is to be made from/preceding  the date of reference, which you can also make.

The learned courts have also observed:

“The employee who had actually worked under the employer for not less than 240 days during a period of 12 months shall be deemed to have been in continuous service for a period of one year whether or not he has in fact been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a period of 12 months.”

And this is already enshrined in the Payment of Gratuity Act, 1972:

 

Section: 2A
Continuous service.

For the purposes of this Act, -

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

 

 

Nothing should be added to or deleted from an act. The judgments of the honorable courts have also reaffirmed the provisions of the act.

 

Employers tend to take advantage of ill informed employees and attempt to subdue the employees by giving misleading information verbally. Many of the employees get subdued and do not submit FormI in their life time and give up their rights.

If an employer has not taken compulsory insurance employer has to disburse the payment of gratuity from its own resources.

If employer is so confident let employer submit its private interpretation of the act in writing.

Employer can award better benefits to the employee but can not decline anything which is entitled by the Act to the employee.

Section: 7
Determination of the amount of gratuity.

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a writ application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.

(4)

(a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

There is nothing wrong in making an attempt.

Kindly post the developments in this thread.It shall help many of the fellow employees and countrymen.


Attached File : 492712268 paymentofgratuityact(1).doc downloaded: 364 times

SURESH GODBOLE (ADVOCATE)     28 September 2012

Mr Dipil Kumar has still not answered the relevant querry

 

                   What are the pressing and unavoidable reasons for not completing 1 more month in service

Dipil Kumar Vasu (Safety Professional)     28 September 2012

@Kumar Doab

Sir: I have submitted a formal request letter to the company requested to pay the gratuity...I will surely update this forum regarding the final word from my management... I have to get relieved tomorrow from the company... In this case if they not give a final reply by tomorrow Can I still have the right to ask the company once I go out may be later on?

@Suresh Godbole

Sir: I have to join in my new company 1st of next month (1st Oct' 12)...  If I stay back with my present employer for one month, I shall be able to join only in the month of Nov'12, may be around 5th Nov'12... Then from 10th Nov'12 minimum 25-30 days long leave I required to organize my sister’s marriage... Immediately after joining no employer will give this much long leave... Also If I stay back one month, I can only think of joining with my new employer in the mid of Dec'12, it's a huge gap... They will not wait this much time... So I took a decision of leave the company upon 4 years and 11 months... Now if I manage to get my gratuity, well and good... However I am not having an intention to quarrel with my employer as it's a case of controversy... A case where 50% population supporting yes and the rest for NO... So let’s wait and see...

Kumar Doab (FIN)     28 September 2012

Yes you have.

Don't limit yourself to formal request,submit FormI umder acknowledgment, immediately.

Subsequent to Formal request which might be verbal or email or letter with acknowledgment or without acknowledgment, you may submit the FormI to good office of your appointing authority and Controlling Authority of Gratuity which may be ALC in your case under proper acknowledgment from both, with a covering letter and mention that the reply be supplied to you by redg/speed post and for this purpose a self addressed postage prepaid envelope is enclosed. Let them reply to you by redg/speed post.

Section: 7
Determination of the amount of gratuity.

 

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.]

 

If you  submitted notice of resignation, you  notified the employer of your date of retirement, and thus you could submit formal request and FormI a month in advance and paymentof gratuity vide FNF statement/dues on your last day in office.

All said and done submit FormI to both with covering letter and self addressed postage prepaid envelope.

SURESH GODBOLE (ADVOCATE)     28 September 2012

No the situation is

 

                             These are not pressing and unavoidable reasons to demit office 1 moth earlier and still claim Gratuity

 

                             Joining a New Organization to get More Salary or to be in your hometown or for whatever reason is joining it for PERSONAL GAINS .


                             I feel , No Court of Law will give you or grant you relief as you are joining new Org at the cost of Parent Org .

 

                           If there is any provision of Waiver , You can apply in a requesting Tone

 

                         Or else forget about the Gratuity , or quitely take NOC , get relieved with smiling face , and after a  month or two , apply for gratuity.

 

Kumar Doab (FIN)     28 September 2012

Mr. Godbole has given an elderly and wise advice.

As suggested by Mr. Godbole, after all other docs are in your custody, BGV is successful, you may submit the FormI to good office of your appointing authority and Controlling Authority of Gratuity which may be ALC in your case under proper acknowledgment from both, with a covering letter and mention that the reply be supplied to you by redg/speed post and for this purpose a self addressed postage prepaid envelope is enclosed. You may mention in the covering letter the formal request given by you and enclose a copy of the acknowledgment of your formal request. Let them reply to you by redg/speed post. After all employers is duty bound to write back on your request, educate the employee on process and documentation and ask to submit FormI.

All said and done it is felt that you are eligible for gratuity. The crystal clear HC and SC judgments can not be faulted.

SURESH GODBOLE (ADVOCATE)     28 September 2012

Section: 4
Payment of gratuity.

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

 

You may submit the FormI to good office of your appointing authority and Controlling Authority of Gratuity which may be ALC in your case under proper acknowledgment from both.

 

Even after this

 

Mr Doaba says  Mr Dipil is entitled accoding to thgis

 

Pl CLARIFY

Kumar Doab (FIN)     28 September 2012

HC and SC judgments have already been attached.

 

                       MADRAS HIGH   COURT

 Page 1074

5.

Referring to Sec 2{A}, 4{1},2{b} of the Act learned Judges and honorable court has decided :

“Therefore these provisions are emphatic in stating that if an employee serves continuously for 240 days in a year he must be deemed to have continuously served for 1 year”

 

SC judgment has also been referred to at this page.

 

@ Dilip,

Another very interesting and informative thread at LCI, initiated by employees:

 

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

 

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp#.UGW582cWrts

You may go thru it.

Dipil Kumar Vasu (Safety Professional)     29 September 2012

@Suresh Godbole

Dear Sir: Thanks for the advice... I have requested to the management for the payment, lets wait to get a final word from them...

@Kumar Doab

Dear Sir: Can you please mail me the SC Judgement on the case of gratuity... I am not able to download it from this website... I tried many times from different computers... Please note my email id: dipilkumar@gmail.com... Also please let me know can I submit this a supporting document to my application to the management to let then convince the fact...Thanks for your guidence and expecting to get the same in future too...


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