Gratuity

Shashi Panwar (Querist) 05 August 2013 This query is : Resolved
I have quarry

1. After leaving the job how much time take to get gratuity.
2. If there any time limit also - two months six month etc.
3. I left my job on 15 june 2013 but still awaiting my Gratuity. Can I take any legal action against the owner of the firm.

please advice

Best regards,
Shashi

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Kumar Doab (Expert) 05 August 2013
Payment of Gratuity Act, 1972

(1) Section: 7: Determination of the amount of 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.

(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.
{ If the employer has not tendered such notice to employee it may be difficult to lie as it is to be supplied to Controlling Authority as well. Employer should determine the amount and tender payment even if no Form or application is made by employee…………..}
Employee should also submit FormI.

(2) The delay can be condoned.

The Act is a statue enacted for social security and employer should also take a view towards the employee. In various judgments courts have taken stance favorable to employee.

You have not delayed however even if the delay is heavy employee may rely upon landmark judgment of Punjab and Haryana High Court at Chandigarh:

IN THE HIGH COURTH OF PUNJAB AND HARYANA AT CHANDIGARH.
C.W.C. No. 5290 of 2009
DATED OF DECISIOIN: 01.04.2009
Senior Superintendent of Post Offices. Hoshiarpur Division, Hoshiarpur
……PETTIONER
Versus
Shri Avtar Singh and others

3. Submit FormI under redg. post and proper acknowledgment.

If you deem, demand copy of the notice from o/o Controlling Authority under RTI……………………
This can help as employer may not reveal maturity amounts it has received from LIC………..and may pay less.

4. “Employees are entitled to maturity amount under the policy, taken by employer from insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed insurer”

Under Section: 4A: Compulsory insurance

This implies employer can not pay less than what it has received as maturity value……………….

This is significant as the employer may calculate as per formulae of Gratuity and keep the remaining amount with it………………..

You may rely upon judgement of :
Kerala High Court

Nedupuzha Service Co-Operative ... vs K.Rugmani,

“Employees are entitled to maturity amount under the LIC policy,”

“All the benefits under the Policy are to the account of the employees and nothing is retained by the employer, which by making payment of the premium, discharges it's annual liability for gratuity to the employees covered under the Scheme.”

“7. In W.A.No.1924/2010, learned counsel appearing for the respondent employees submitted that accumulated amount received from the LIC by the appellant Bank is more than what is paid to them. This is a matter for verification. Since the appellant's counsel disputed this position, there will be a direction to the LIC to furnish details of the accumulated W.A.Nos.980, 982 of 2010 & connected cases -11-amounts accrued in the account of the respondents i.e. passed on to the appellant, and if any amount in excess of the amount paid to the respondents was received by the appellant Bank, the same should be forthwith passed on to the respondents. The respondents can claim the amount based on the information received from the LIC.”

Valuable advice of learned experts is sought.