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kamal (TL)     18 April 2012

Gratuity eligiblity

Hello,

             I have worked  in a Pvt. Ltd. IT company for 5 Years 8 Months (May 2006 to Jan 2012) as a parmanent employee. So am I eligble for gratuity amount ? because I have some question in my mind -

1. First, When I joined the company I was studying also. So first three years of my job, I was student. But even this, I was appoint as a parmanent employee (FULL Time Employee) in the company not part time or on probation.

      So is it possible for my company to reject my gratuity claim ?

 

 2. Second, since at least 5 years of continues service is required, I have taken long leave (aound one month) for exam preparation, but on that perticular time I was on leave not absent. I never resign between the job.

      So are these curcumstances  can create the problem for gratuity claim ?

 

 If I am eligible for Gratuity, please suggest me how can I claim for gratuity amount coz I am sure my company will not cooperate to my about this matter.

Thanks in advance :)

 



Learning

 7 Replies

JANAK RAJ VATSA (ADVOCATE)     18 April 2012

u are eligible

Kumar Doab (FIN)     19 April 2012

You have posted that you have rendered unintrupted service as a permanent employee for 5Y 8M.

Thus you are eligible.

If you are contemplating to resign ,you may mention effective date of your resignation in your notice of resignation and  to include your gratuity in your dues payable to you and pay you all your dues on your last day in office.You may also submit list of payables by company to you and ask the comapny to varify the list and supply you the varified list say within next 7 days, in writing. You may specifically ask to confirm as per company policy you are eligible for garttuity or not? If not you may demand the certified copy of the policy and rules and law of land on the basis of hich company policy has been drafted.

You may obtain copy of certified standing orders of the comapny from your company HR, which company should display at the entrance, keep on employee website, and SE act applicable to your state from Labor website or market.

This is the time to strengthen the bonds of rapport, goodwill built during employment and carry these forward. Remain amiable and be smart.

Manindra Singh (Chief Manager IR)     19 April 2012

As advised by other friends you are eligible. Just one caution : please check letter of appointment and confirm that it was a permanent appointment.

Immediately after separation please submit dully filled "Form - I" to your employer for claim of gratuity, with copy to the DLC of your area. Legally, the payment should be made within 30 days, if not you can claim interest for delay.

 

Thanks,

Kumar Doab (FIN)     19 April 2012

Kindly read :

7. Application for gratuity.-(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer:

 

    Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

 

8. Notice for payment of gratuity.-(1) Within fifteen days of the receipt of an application under rule 7 for payment of gratuity, the employer shall-

 

(i)                   if the claim is found admissible on verification, issue a notice in Form 'L’ to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof, or

 

(ii)                 if the claim for gratuity is not found admissible, issue a notice in Form 'M' to the applicant employee, nominee or legal heir, as the case may be, specifying the reasons why the claim for gratuity is not considered admissible. In either case a copy of the notice shall be endorsed to the controlling authority.

 

Hence you may turn the situation in your favor and explore the possibility and submit a letter and form to employer in advance with a copy to controlling authority. You must obtain proper acknowledgment under original seal and signture with date affixed.


Attached File : 977174129 rulesofpaymentofgratuity(5).doc downloaded: 170 times

Kumar Doab (FIN)     19 April 2012

It shall be imperative to confirm the company has constituted a trust or has availed Group Gratuity Scheme from LIC. LIC provides actuarial valuation every based on the salary (Basic + DA) details provided by company and based on valuation LIC asks company to contribute towards the company's Group Gratuity Scheme.The company pays the amount to LIC and LIC in turn follows the Gratuity rules and make payments to the employee to the extent of available fund as paid by the employer. The fund earns interest as declared by LIC from time to time. You must try to obtain the details of Group Gratuity Scheme from your company, including its number.The funds kept in the scheme belong to you. If the employee who has separated/is separating does not make any formal request for payment of gratuity, even then the company has to make the payment of gratuity within one month from the date of his resignation.If the company does not have any address of the ex-employee, the amount of gratuity is to be deposited to the concerned government authority.

Manindra Singh (Chief Manager IR)     19 April 2012

Thanks. You have mentioned the rules. The provisions under the Act, (Section - 7(2) and Section-7(3)) relevant here is given below: 

 

 

Section 7: Determination of the amount of gratuity
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

(3-A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify :

Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.

(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

 

Manindra Singh (Chief Manager IR)     19 April 2012

It is explained with complete details and absolute clarity by Mr.Kumar.

Thanks,


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