One of my relatives was recently laid off by a Pvt. Ltd. Company where he worked for over 20 years. The company asked him to leave on 1 day Notice as the company is not doing well. He did get the PF but the Gratuity is doubtfull. Hence the question is
1. Is the company obligatory to pay Gratuity ?
2. Since they are not doing well financially, can they cut and excuse for not paying Gratuity ?
3. Is there any greviance addressal mechanism ? Like Labour court etc?
Kind Regards
Kumar Doab (FIN) 15 July 2017
You were laid off or retrenched or terminated or asked to resign and you resigned?
Did company circulate any notice on its not –good financial health and intent to close/downsize etc etc?
Kumar Doab (FIN) 15 July 2017
You have confirmed that it is private establishment.
1st thing 1st: Submit FormI under proper acknowledgment and mention that ‘Notice of Determination’ of Gratuity and payment has not been supplied despite representations in office on dated………………to Mr/Ms………..
Did this company obtain mandatory insurance from FI say LIC?
Kumar Doab (FIN) 15 July 2017
While posting such queries employee should post basic information!
What is this establishment; Commercial, Industrial?
What is its nature of business say; IT, ITeS?
How many persons are employed in it?
What is your designation and nature of duties?
How many persons report to you?
Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?
You are in which state? Since how many months you are working?
Do standing orders (model/certified) apply to establishment and your designation?
What is notice period as per appointment letter/offer letter and what was notice period tendered by you?
Was ever any stinker, memo, show cause notice on any misconduct issued to you?
Are you a member of employee’s/trade unions?
Has the establishment issued/supplied, salary slips of all months, PF number and a/c slips of all years, ESIC card,FnF statement?
Kumar Doab (FIN) 15 July 2017
If Gratuity is not paid within 30days from LWD then interest @10%pa is to be paid for the delayed period.
The complaint is to be lodged with Controlling Authority, preferably without any delay?
It has been how many months since date of separation?
Kumar Doab (FIN) 15 July 2017
There are many threads on similar query at LCI e.g;
https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49
THANKS Kumar
The Organisation is a Private Manufacturing company in Maharashtra and the nature of business is SPM (Special Purpose Machines)
Approx 70 Employess work there and they do issues Salary Slips, PF, ESI, F&F etc
There is no affiliation to any Trade union. There are NO terms of employment in offer letter as No formal offer letter was given 20 years ago.
The role is Accounts Managar and 2-3 people were reporting to him
The company is downsizing as the orders are declining and no notice is given to employees
The Seperation happened in April this year
Kumar Doab (FIN) 16 July 2017
Craefully and with patience pursue:
THE GRATUITY ACT, 1972 The Payment of Gratuity (Maharashtra) Rules, 1972.
5) Compulsory insurance of the employees is to be obtained
https://esipf.com/labour-law/The%20Gratuity%20Act.pdf
Payment of Gratuity Act 1972
https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf
THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972-1
https://labour.gov.in/sites/default/files/ThePaymentofGratuityRules.pdf
Kumar Doab (FIN) 16 July 2017
Record irrefutable evidence of Downsizing and/or demand of resignation (if it is).
Submit FormI under proper acknowledgment.
Has establishment framed its certified standing orders?
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