Eligibility for gratuity
Isaac Gabriel
(Querist) 26 August 2012
This query is : Resolved
An employee was appointed and joined at the Central cCooperative Bank on31-08-1974.Subsequently transferred to another copperative society on31-07-1975 and he was absorbed and retired on 29-02-1974.The coop society to which he was transferred is not
financially sound to pay grattuity,whereas the Central Cooperative Bank is financially sound.Can he claim gratuity from the Bank where he was appointed and joined duty first?
Guest
(Expert) 26 August 2012
Dear Isaac,
The date of retirement as 29.02.1974 with reference to the date of absorption (31.07.1975) seems to be wrong.
However, for gratuity purpose, there is no exception or immunity for the concerned organisation, whether that is financially sound or weak. Since the employee severed his relations from the Central Coop Bank on his absorption in another cooperative society, the Central Coop Bank cannot be made liable to pay gratuity for and on behalf of the cooperative society. So, even if he puts his claim before the Central Coop Bank, his claim would get categorically rejected. Moreover, the Bank would not be able to justify payment when its accounts are audited.
Society should therefore make its own arrangement for making payment of gratuity amount to the employee.
Isaac Gabriel
(Querist) 26 August 2012
Thank you sir.The date of retirement is 29-02-2004.Whether he is eligible for gratuity from the date of joining on 31-08-1974 since his service is continuous from that date,and is the Central cooperative bank bound to pay the proportionate Gratuity for the service rendered under it?
Guest
(Expert) 26 August 2012
Dear Isaac,
Since the organisation has changed, the retiree would be eligible for gratuity from the date of his joining (31.07.1975) in the society, provided he served the society for about 4 years and 240 days from the date of absorption.
