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Non-payment of gratuity

(Querist) 03 May 2011 This query is : Resolved 
I served a law firm for 5 yrs 8 m without any break, as a patent attorney.I was asked to stop work verbally, without any reason being shown in writing.I have got the PF amount, but gratuity payment has not been made.No reason for non-payment has been given so far.At least four letters from me seeking their view or the reason not yet answered.I joined at age 59 yrs 4 months and left at 63 yrs 11 months.My appointment letter did not mention gratuity or PF, but PF deduction was made all through.I was an employee (not consultant),IT Form-16 was issued regularly.Am I ENTITLED to gratuity payment?What steps can I take, if I am ? Kindly advise.
Guest (Expert) 03 May 2011
If you have already put in more than 5 years of regular service you are entitled to gratuity also. First of all just send a simple application to the company for payment of gratuity under the provisions of the Payment of Gratuity Act 1972 and watch for response. If there is no response, only thereafter think for any legal action.
Guest (Expert) 03 May 2011
If you have already put in more than 5 years of regular service you are entitled to gratuity also. First of all just send a simple application to the company for payment of gratuity under the provisions of the Payment of Gratuity Act 1972 and watch for response. If there is no response, only thereafter think for any legal action.
mathivanan (Expert) 04 May 2011
It is sufficient that you have put in 5 years of service. But as per the act the firm in which you worked should have more than 5 workers, then only your establishment is covered under the Payment of Gratuity Act 1972. You joined the work only after the age of retirement, specified normally under other laws ( probably you would have worked elsewhere till 58)and that aspect also would be a bar to your claim of gratuity. Further your application has to be made within one year of relieving from service. As the period of service is not mentioned with exact dates, your query can be suggested on a general parlance only.
Guest (Expert) 04 May 2011
Dear Mathivanam,

You may please review you reply in so far as the No. of employees are concerned. According to Section 1(3)(b) and Sec. 1(3)(c) of the Payment of gratuity Act 1972, the No. of employees should be 10 or more (NOT 5 or more) where the Act becomes applicable.

Mr. Pradip may also please like to know for his information and to check whether his organization falls within the scope of the Payment of Gratuity Act or not.
Pradip Majumdar (Querist) 06 May 2011
Dear Experts PS Dhingra and Mathivanam,
First of all many thanks for your extremely prompt responses.
The company where I worked has more than 90 employees, and several have been paid gratuity before me.So the question whether the company is covered under Gratuity Act is settled.
I joined this company on 19th.January 2005 and was employed till 7th.September 2010 without break. My date of birth is 25th. September 1946. So, I joined at age 58yrs 3mths and left at 63yrs 11 mths.
In view of the age factor mentioned by you, kindly advise me whether I am entitled
to gratuity at all. If I am not,which it now appears, there is no point even in applying to the company, I feel.
I am immensely grateful for your assistance and look forward to your valued advice.
Best regards.
Guest (Expert) 13 May 2011
Dear Pradip,

You will need to check the general employment rules prescribed for retirement, superannuation, etc. of the firm. If that prescribes 65 years of age as retirement/superannuation age, your claim for gratioty would be valid. But if the retirement age has been fixed by the company as 60 years, you would not be entitled to claim any gratuity.
Pradip Majumdar (Querist) 14 May 2011
Dear Mr. Dhingra,
Thank you once again for your valuable and prompt advice!The firm where I worked has no published rules of anything, so the question of checking their retirement policy does not arise.I am not in a financial condition to even contemplate a legal route.So I guess this is the end of the matter for me.You must be aware of many private firms like this one.Some are even worse.People like me are treated according to their whims.
I therefore wish to close the matter, again with profound thanks to you and Mathivanam for taking out your time for my problem.
My best regards and wishes ti\o you both!


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