Eligibility for Gratuity
Md Mukibul Islam
(Querist) 25 May 2011
This query is : Resolved
Hi Sir,
I joined an MNC on 21st of Aug 2006 and resigned the same on 2nd of May 2011. I have completed 4yrs and 254 days in that company. Now as per the Payment of Gratuit Act, 1972, Section 2A 2(a)(i) and Section 4(1)(b), I think I am eligible for the payment of gratuity. But my company is denying that and saying that "you need to complete 5yrs for gratuity".
Please let me know whether my understanding of the Act is correct. And if I'm correct please let me know what process i need to follow legally to get my payment of gratuity.
The Act document for you reference.
http://labour.gov.in/clc/PaymentofGratuityAct.doc
Thanks and Regards,
Mukibul
Guest
(Expert) 25 May 2011
Your presumption is correct. However, the sub-section you have quoted applies to miners (underground workers). You are eligible under section 2A 2(a)(ii), i.e. with 240 days for other workers. Ask the company to refer to the provisions of Sec. 2A 2(a)(ii) and make payment of gratuity.
Md Mukibul Islam
(Querist) 25 May 2011
Thank you very much Sir for your prompt reply.
Sir the section I mentioned says this:
" 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".
So I think I come under the phrase after the word "or" i.e. establishment which works for less than six days a week. My company works 5 days a week.
So I assumed that I come under the section 2A 2(a)(i).
Anyway, in either of the section I become eligible as i have completed 254days which is greater than 190 or 240.
And I have already asked them for gratuity mentioning the above clauses from the Payment of Gratuity Act, 1972. But they denied saying it is applicable only after you complete 5 yrs of service.
So in that case what should I do?
Thanks and Regards,
Mukibul
Md Mukibul Islam
(Querist) 26 May 2011
Hi Sir,
That doesn't answer my query yet. My query was as follows:
I had mail communication with my company asking my gratuity payment. But they have denied saying that you need to complete full 5 yrs of service, in spite of me referring to the section 2A. In this case what would I do? What should be my next step from now?
FYI: My location is Chennai
Thanks and Regards,
Mukibul
Guest
(Expert) 27 May 2011
Dear Makibul,
In your original question you omitted to make a mention of 5 days week being observed in your company. So, how I could presume your company working for less than 6 days a week?
Anyway, if the company has replied you in negative, must serve the company with an advocate's notice quoting reference of the section and asking for payment of gratuity. The company cannot violate the law of the land.
Md Mukibul Islam
(Querist) 27 May 2011
Dear Sir,
Thank you very much. Sorry I missed to mention the "5 days a week thing" in my earlier post.
Anyway, so now I need to consult an advocate from the labour court to send a notice to my company. Am I right?
Thanks and Regards,
Mukibul
H. S. Thukral
(Expert) 29 May 2011
You apply to the employer for payment of Gratuity in prescribed form. if Gratuity is not paid then apply to the Controlling authority under the Act who usually is ALC/DLC of the area.
