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Sonam Gupta (engineer)     06 June 2018

Regarding gratuity eligibility

My service with Private Limited Company is 4 Yrs and 8 Months (Approx)- DOJ 18-Sep-2013 and Date of Relieving is 28-June-2018. And I have given my resign 31-May-2018. whether i am eligible for Gratuity or not if yes then let me know the rules if not please let me know why Ur valuable comments will be appreciated..



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 7 Replies

R.Ramachandran (Advocate)     06 June 2018

Since it is more than 4 years and 240 days, you are entitled for gratuity, under payment of Gratuity Act.

Pradipta Nath (Advocate)     07 June 2018

Yes you will be eligible for payment of Gratuity. The reason is that you have rendered 4 years service and in the fifth year you have rendered 240 days. As per section 4 of the Act an employee will be eligible for Gratuity if he/she has rendered 5 years of Continuous service. And under section 2(c)(ii) Continuous Service means that an employee has worked for 240 days during the 12 months immediately preceding the year.

Sonam Gupta (engineer)     13 June 2018

Hi, Thank you for your anser. Could you please tell me? What was the process for getting the gratuity from a company? Actually thery are saying after 6 months you can calloect your gratuitu ammount. But I am asking any doucumentioan or from but they are saying no need here. How can i trust them? please suggest me best thing for it. 

Pradipta Nath (Advocate)     13 June 2018

Dear Ma'am,

Please be noted that the till date there is no such law that the employee should collect his/her gratuity after 6 months, and whereas the fact is that there is no 'Should' there is only 'May' but that too subjected to mutual understanding and request!

In furtherance to this, please also note that under section 7(1) of the POG Act, you need to send writing in Form I to the employer. The employer upon receiving Form I need to disburse the Gratuity amount to the concerned employee within 30 days from the date to receipt in reference to section 7(3) of the POG Act. These 30 days period can be accommodated on mutual consent and understanding but certainly cannot be tolerated if the employer casts some unreasonable and self pdrafted rules.

Please make aware your HR on the Labour Laws. I hope the matter is contracdicting due to unawareness of Labour Laws.

All the best!!

Kumar Doab (FIN)     22 June 2018

You may carefully go thru; Payment of Gratuity Act,1972; 1, 2,2A,4,7,9 https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

 

and check if your establishment is covered ( as per number of employees) and you are eligible..

You may also go thru simple to understand:

THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972 https://labour.gov.in/sites/default/files/ThePaymentofGratuityRules.pdf

 and simple to understand Rules by your state e.g;

The Payment of Gratuity (Maharashtra) Rules, 1972

https://www.esipf.com/labour-law/the%20gratuity%20act.pdf

Kumar Doab (FIN)     22 June 2018

Employee (e.g; You) should consult and take help of elders in the family, competent and experienced well wishers, seasoned employees/trade union leaders, a very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service   matters and well versed with latest citations, LOCAL applicable rules/laws/ … and having successful track record…. and worth his/her salt…..and show the case related docs etc etc for a considered opinion to handle any situation…properly.

With time and experience majority of the employee become properly informed and are able to handle the matters with their own knowledge and skills; persuasion, persistence, negotiation, reasoning…

 

Perspectives;

Employer can pay Gratuity on LWD with FnF.. Employee can submit letter to pay Gratuity 30days before LWD.. Still; You are closest to the facts and nature of establishment and bosses and HR personnel you are working with………. And may keep copy of notice of resignation (also POD), and get offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………  

 

After relieving submit letter under proper acknowledgment stating that ‘Notice of Determination of Gratuity’ {that should contain DOJ-LWD, (Basic +DA) as per last drawn salary, NO. of years in service}, Gratuity payment, requisite forms are not supplied and may be supplied…

 

 

The employer is under obligation to reply and agree to pay or decline to pay citing reason.

Gratuity= {(Basic+DA)/26*15*No. of years in service}

(Basic +DA) as per last drawn salary,

In your case No. of years for calculation is 5..

 

 

Kumar Doab (FIN)     22 June 2018

If employer does not pay within 30days from LWD IT has to tender interest @10%pa… You can very well take help of….. as suggested above.

If nothing works then you may have to approach Controlling Authority of Gratuity (and may not the court) and submit FormI (legal  notice may not be required)........... 

Someone can also represent you as ‘Authorized representative’ as provided for in the Act…

 


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