Dear Members,

I am seeking answer to my query regarding gratuity. My sister's husband is working for 'Gymkhana', Mumbai for last 7 years on the post of Manager. Now he switched from the current job and joined another establishment. Is he elegible for gratuity? His employer gave him only last month salary. What procedure he adopt for getting gratuiry? Kindly help me out.

Thanking you.


Yours faithfully,


Sushil Padwal


If Gratuity is applicable and employee is entitled then employer has to supply notice of determination of gratuity and payment within 30days from LWD else tender interest @10%pa

Employee can submit FormI under proper acknowledgment and mention that determination of gratuity and payment has not been supplied.



The attachments may be useful.

Attached File : 60926 20160606140139 511467302 application of esi gratuity.docx downloaded 45 times
Retd Sr Director Govt of India/ Advocate

1) If the amount of gratuity is not paid by the employer within the prescribed time to the person entitled thereto, the aggrieved person should make an application to the Controlling Authority under the Payment of Gratuity Act within the area where the employer's establishment is situated or where the employee was working at the time of termination.


2) The controlling authority shall issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto.


3) First file claim on the prescribed proforma under ack and wait for fortnight.  Thereafter folow as per 1 and 2 above.


>>> If employer does not supply notice of determination of Gratuity and payment Submit FormI under proper acknowledgment, and initiate the process.


>>> Payment of Gartuity Act, 1972: Sec:9..........................also provides for penalty Rs.20000/ and jail term............ 6 months ................to 'WHOEVER' avoids to pay Gratuity.


RULES, 1972-1

In exercise of the powers conferred by sub-section (1) of section 15 of the Payment of
Gratuity Act, 1972 (39 of 1972), the Central Government hereby makes the following rules,

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

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.




The payment of grauity is applicable, if any employee completes of 5 years of service.  The gratuity payable is 15 days basic salary for every completed year service (service exceeding  6 months in any year will be rounded to 1 year) on the basis of last drawn salary.  The maximum gratuity payable is Rs.10 lakhs. So in the instant case, gratuity is applicable.  Other rules,as friends stated above, shall apply.




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