Reason of leaving on gratuity paper of terminated employee

Querist : Anonymous (Querist) 26 January 2012 This query is : Resolved
Dear experts,

A group gratuity account of a public ltd company is with LIC.

1) In service/labour laws is it legally correct to mention "resigned" instead of "terminated" as reason of leaving service for a terminated employee on his gratuity paper.

2) Since the employee has not given any resignation letter, will the LIC trust have powers to release gratuity for reason of resignation without checking from employer that they have the valid resignation letter or not since the employer is writing resignation as reason of leaving service

What difficulty the company will face during a court case if they write "resignation" instead of "termination" on his gratuity papers

pls advise

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Raj Kumar Makkad (Expert) 26 January 2012
1. It is better to write the exact reason of leaving the service. if any employee hides its reason then he should be ready to face its consequences.

2. LIC shall not release payment untill the relevant form is recommended by employer by making verification from its own record.

It depends upon facts and circumstances and persuation of the case.

prabhakar singh (Expert) 26 January 2012
agree with Mr.Makkad.

Isaac Gabriel (Expert) 26 January 2012
While remitting the premia, the employer needs to state whether the employee on the group gratuity is continuing in service or left from service.In such an event, the LIC will terminate the member's account and discharge his gratuity in accordance with the terms of the scheme.It is the employer not the employee to inform the LIC whether the employee was terminated, resigned,
superannuated or retired and claim the gratuity amount accrued on his behalf for disbursement to the employee.

Devajyoti Barman (Expert) 26 January 2012
agree with above.

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