Gratuity

BK (Querist) 16 January 2010 This query is : Resolved
A friend of mine took VRS from a Govt Company owing to some differences with the Chairman. Vrs though was granted, however on frivilous account the Chairman instituted an Inquiry - where no financial involvement is there in the charge
sheet. Pending this Inquiry his Gratuity is not being released by the Company. What is the course of action for him to get his Gratuity under the Act. Similarly the leave encashment has also not been released.
Further it is over a year and except preliminary hearings, the Inq is being delayed for the obvious reasons that charges are not proveable by the Company managment. Pl sdvice

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Guest (Expert) 16 January 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.09325226691, 09271971251
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com

REGARDING THE VRS AND GRATUITY KINDLY NOTE THAT.
1.VRS IS VOLUNTARY RETIREMENT SCHEME.IT IS OFFERED TO PERMANENT EMPLOYEES AND THE AMOUNT PAYABLE IS AS PER THE DETAILS IN THE SCHEME.
2.AS VRS IS GRANTED FROM GOVT.COMPANY THEN THEY CAN NOT WITHHOLD THE RETIREMENT DUES AS PER SCHEME.
3.THE SAID PERSON MAY FILE A WRIT PETITION TO THE HIGH COURT AND RESPONDENT SHOULD BE THE CHAIRMAN OF SAID GOVT.COMPANY AND ALSO THE APPOINTING AUTHORITY.
4.IN CASE ANY URGENT HELP IS REQUIRED KINDLY SEND DETAILS .WILL HELP HIM.
WITH BEST REGARDS TO YOU YOUR FAMILY AND FRIENDS.
THANKING YOU
YOURS SINCERELY
NANDKUMAR B.SAWANT.,M.COM.LL.B.(MUMBAI),ADVOCATE

B K Raghavendra Rao (Expert) 16 January 2010

In a government company, the Managing Director is the executive director and held responsible for all affairs of the company. Chairman has no powers to deal with day to day affairs of the company and he shall chair the board meetings and be at liberty to raise the issues therein.

When an enquiry is instituted you have no option but to face it. To expedite the enquiry, for good reasons, you may approach the High Court and seek directions for completing the enquiry at the earliest period say three months or so.

Vijayarajan (Expert) 17 January 2010
Normally VRS is taken or granted on mutual consent. Other one is resignation. So when there is a mutual consent and agreement how the question of enquiry take place? However the employee can file application for gratuity before the controlling authority and make an application under Sec 33 C of ID Act for other claims as per the agreement or award before the Labour Court.

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