Mr.vel kumar (ASM) 26 March 2011

gratuity

Sir,

I am worked as an area sales manager in a limited concern for past 5years and 4 months as per my company reliving order they had mentioned my gratuity amount in my settlement letter but they had informed that it will be released within 15days after cleared by LIC.Now it was 26days over no news from them.

One thing i want to inform you that a per my appointment order there was an clause as service contract in that they had mention you shall not join any of our competitors or companies which manufacture/trade products similar to ours, for a period of one year from the date of your being relived from the services of our company.In the event of your violating this condition, you shall pay a sum of Rs.100000 as damage to our company.

At the time of getting the relieving order i signed a letter stated that

I herewith confirm that as per the terms of my appointment letter, I am not joining any competitor of ********* for a period of one year from the date of my resignation.

But now i had joined in an competitor company . I check with my excollegue they informed me that the management hold my gratuity due to this.

Kindly advice how can i proceed further in this regard

Thanks and Regards,

VEL.

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2 Replies

V. VASUDEVAN (LEGAL COUNSEL) 26 March 2011

Gratuity cannot be held on the reasons cited by you. You also write to LIC, quoting your employee ID number and find out the status of your gratuity claim. If no response is received, write the controlling authority - local labour authorities.

Kirti Kar Tripathi (lawyer) 27 March 2011

once, you resigned the services and resignation is accepted, no employer can impose such type of condition, you can refuse to accept this condition. gratuity can not be withheld in any event exept on the ground mention in the act.

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