tajinder singh (Manager F & A) 27 July 2013

Payment of gratuity

Dear Sir,

I have question, My wife joined an organization on 28/11/2005 , and left on may 2012 .She worked with that organization for 6 year and 4 month . During that period she has taken 75 day leave without pay due to her accident , which was duly approved by director of her organization , Now when she left the organization and ask them to pay her gratuity amount , they refused to pay the gratuity amount by asking that because she has taken 75 day leave before the completing her 5 year of continuous working hence she is not eligible for gratuity .

I have read gratuity act . As per act gratuity amount is payable if the employees complete his or her 5 year from the date of appointment . if the employees took without pay then proportionate amount will be deducted from the amount of gratuity from the that particular year .

I could not understand why they are asking that she is not eligible for gratuity amount .

Please advice us what to do

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1 Replies

Kumar Doab (FIN) 27 July 2013

You have posted that:

“During that period she has taken 75 day leave without pay due to her accident , which was duly approved by director of her organization”

It shall be certainly a good document on record if the lady has proper communication confirming approval of leave…..

The lady may switch from verbal to written mode under proper acknowledgment and may submit FormI (of course under proper acknowledgment).

Section: 2A
Continuous service.

For the purposes of this Act, -

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

Section: 4A
Compulsory insurance

(The contravention of this clause is punishable with fine………………)

Section: 7
Determination of the amount of 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 gratuity so determined.

Section: 9
Penalties.

(The lady may draw the attention of HR personnel and Director to the word ‘Whoever’ in this section and the provisions of punishment/penalty/imprisonment for contravention of the Act…………………)

If you find it difficult to handle the matter on your own approach your lawyer.

Your lawyer would know the precise manner on how to drill the sense into heads.

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