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Kumar (Propertor)     11 September 2013

Gratuity

I have worked in a pvt. Ltd. Organization for 12.4 years. 

My total service is split in to two as the company formed another one within and few of the employees were moved to the new one but in the same premises, same job and same designation.  We were moved to the new organization without our knowledge and consent. I have 11.4 years service in the parent company and one year in the newly formed company.   I got the annual hike in salary in the new organization and increased the basic pay as well.

Dear Sirs

I was terminated suddenly due to some dispute between me and the MD. Now when I asked for my gratuity they are calculating it for 11.4 years and one year separately as a result I am going to get less paid due to the split in service.  My basic was 16000/- in the parent company and I was terminated my basic pay was 18658/- Please advice for how much gratuity I am eligible for. 

The company split my service in to two for their internal purpose and it was intimated and without my consent. I have the appointment letter from the parent organization.

My gratuity is not yet paid and dragging it like anything  even after 5 months of termination. Am I eligible for any claims as they terminated me in a day’s time?  Kindly provide information for me to get my rightful money.     



 6 Replies

Kumar Doab (FIN)     12 September 2013

 

What is this establishment: Commercial or Industrial?

You are located in which state and Redg. office of the company is in which state?

First of all you may confirm if standing orders are applicable to the establishment and if the establishment has its certified standing orders or not and if it exits you may obtain certified copy from concerned personnel in HR against a reasonable payment of say Rs.10/, or from Certifying Officer (DLC) in o/o Labor Commissioner at the location of redg. office of the company against a nominal payment which may be Rs.3/per page.

If standing orders are applicable but have not been certified Mode Standing Orders shall apply.

The standing orders may be applicable if Payment of Wages Act applies and also the state govt. might have made it applicable by notification.

The local labor consultant/service lawyer can help you.

 

You have posted that:

------- “I was terminated suddenly due to some dispute between me and the MD. ‘

Am I eligible for any claims as they terminated me in a day’s time? ‘

What is the reason for termination stated in the termination order?

If it is misconduct company should have conducted a fair inquiry and should have provided proper hearing.

If the services are terminated for proven misconduct the notice/pay may not be applicable.

A MD can also be a fault.

If you are not at fault you may succeed to agitate to call back order of termination and/or claim damages.

If there is no reason stated in termination order then you may succeed to get min. notice pay or lay off/ retrenchment compensation.

----------“We were moved to the new organization without our knowledge and consent.’

What does it mean? Was there no communication or notice?

Were you issued a termination order from old company and no appointment order from new company?

Which company has bee issuing salary slips?

The company split my service in to two for their internal purpose and it was intimated and without my consent. I have the appointment letter from the parent organization.”

What was intimated?

Was it a deputation?W

What is DOJ, DOL in last salary slip and FNF statement issued to you?

Apparently company has calculated Gratuity and has issued notice to you, it is not clear whether it has sent the copy to Controlling Authority of Gratuity or not as per

Payment of Gratuity Act 1972: Sec7: Determination of amount of Gratuity?

If you are not satisfied instead of remaining entangled with company you may submit FormI to company by redg. post and approach Controlling Authority of Gratuity…………..which may be DLC-Gratuity at your location……………….

 

It shall be appropriate to approach in person the  labor consultant/service lawyer and he can help you.

 

 


Attached File : 60305034 model standing orders industrial employment standing orders rules.pdf downloaded: 109 times

Sudhir Kumar, Advocate (Advocate)     12 September 2013

well elaborated by Mr Kumar Doab

Kumar (Propertor)     12 September 2013

 

What is this establishment: Commercial or Industrial?

Industrial

You are located in which state and Redg. office of the company is in which state?

Both are in Karnataka, Bangalore

First of all you may confirm if standing orders are applicable to the establishment and if the establishment has its certified standing orders or not and if it exits you may obtain certified copy from concerned personnel in HR against a reasonable payment of say Rs.10/, or from Certifying Officer (DLC) in o/o Labor Commissioner at the location of redg. office of the company against a nominal payment which may be Rs.3/per page.

If standing orders are applicable but have not been certified Mode Standing Orders shall apply.
The standing orders may be applicable if Payment of Wages Act applies and also the state govt. might have made it applicable by notification.
The local labor consultant/service lawyer can help you.
 
You have posted that:
-------
“I was terminated suddenly due to some dispute between me and the MD. ‘
Am I eligible for any claims as they terminated me in a day’s time? ‘

What is the reason for termination stated in the termination order?


The MD shouted at me in front of others for not doing an accomplished work in a very short time. The job assigned was pertaining to maintenance (follow up with UPS service contractor)  of UPS where i am appointed as a designer. It was no matter for me to do the assigned job but i wanted little time as i was busy with some other priority job (designing). When he assigned to handle the subject matter i did not hesitate to do it, but  again when he asked me in a very short time of half an hour whether it is done or not i said No.
He did not allow me to tell why it is delayed. As he shouted in front of other staff i got annoyed and replied that "it is not my job and i am not going to do it". Then he said get " get out" .  I did not tell anything as i felt ashamed in front of other staff who are just 1 - 2 or 3 years of service where as i am there for 12 years.  I just took my belongings and came out.

xxxxxxxx If it is misconduct company should have conducted a fair inquiry and should have provided proper hearing.
If the services are terminated for proven misconduct the notice/pay may not be applicable.
A MD can also be a fault.
If you are not at fault you may succeed to agitate to call back order of termination and/or claim damages.
If there is no reason stated in termination order then you may succeed to get min. notice pay or lay off/ retrenchment compensation.
----------“
We were moved to the new organization without our knowledge and consent.’
What does it mean? Was there no communication or notice?
Were you issued a termination order from old company and no appointment order from new company?
Which company has bee issuing salary slips?
The company split my service in to two for their internal purpose and it was intimated   (sorry this was
typo -  it was not intimated)  
and without my consent. I have the appointment letter from the parent organization.”
What was intimated? I mean to say shifting us to the new firm was not intimated and we came to know that we are part of the new firm after 3 months of shifting and that time we asked our MD about our service continuity he said it is a group company and our service will not be affected.

Was it a deputation? NO

What is DOJ, DOL in last salary slip and FNF statement issued to you? DOJ - 13-11-2000 and DOL 19-03-2013 (Out of this since March 2012  to the DOL i am in the new organization)
The MD asked us to claim for the PF contribution of the parent organization  immediately after shifting us to the new firm and we did so and got the PF while working there.  Now i have applied for the balance PF which is of the new organization's contribution)

Apparently company has calculated Gratuity and has issued notice to you, it is not clear whether it has sent the copy to Controlling Authority of Gratuity or not as per
Payment of Gratuity Act 1972: Sec7: Determination of amount of Gratuity?

I came to know it from the accounts department that the service will be split and the gratuity calculation will be done accordingly and i have got a part payment of Rs. 50,000/- towards the gratuity.  They have not issued any notice to me pertaining to this.

If you are not satisfied instead of remaining entangled with company you may submit FormI to company by redg. post and approach Controlling Authority of Gratuity…………..which may be DLC-Gratuity at your location……………….

It shall be appropriate to approach in person the  labor consultant/service lawyer and he can help you.

That’s fine.

I am highly grateful to you for your valuable time spent on my case and for the patience you have shown for writing these queries.   

Kumar Doab (FIN)     12 September 2013

 

You have posted that:

 

 

-----“What is this establishment: Commercial or Industrial?

Industrial

Obtain certified copy of certified standing orders from company or Certifying Officer (DLC).

Become member of Trade Union. Trade Union leaders know precise ways on how to deal with this kind of MD’s……………………………….

If you are firm and the trade union leaders, your community leaders take you under their wings it is also possible that this MD will beg apology in presence of its staff.

 

-----“we came to know that we are part of the new firm after 3 months of shifting and that time we asked our MD about our service continuity he said it is a group company and our service will not be affected.”

Now let him show that you were terminated/resigned/relieved from old company or agree that there is no discontinuity.

-----“DOJ - 13-11-2000 and DOL 19-03-2013’

This shows no interruption in service. Therefore you may claim for the entire period and submit FormI accordingly.

 


 

(Basic+DA) x15/26xNo. of completed years of services

(part of a year in excess of 6 months is counted as 1 year)

(Basic+DA as per monthly wages last drawn)

If there is no DA then Basic may be taken for calculation.

 

 

Although the Formulae of calculation of Gratuity is mentioned above establishment is under obligation to supply full amounts received from LIC without keeping any amounts with it, even if amount calculated by the formulae is less than amounts disbursed by LIC………………..

You may demand copy of the certificate of payment mentioning amounts paid by LIC to compnay and calculation made by LIC.

------“The MD asked us to claim for the PF contribution of the parent organization  immediately after shifting us to the new firm and we did so and got the PF while working there.  ‘

Next time do not work by asking, telling mode. Consult elders in the family, lawyer/law firm and proceed under expert advice of the lawyer, and correspond in writing with the company.

If you have decided to agitate against termination, don’t withdraw PF.

-----“He did not allow me to tell why it is delayed. As he shouted in front of other staff  ‘ “Then he said get " get out" “

Has he issued any written termination order?

You could have called trade union leaders, your community leaders, labor Inspector, factory Inspector on the spot even police.

The lists of trade union Leaders, Labor officials are attached.

Approach your lawyer.

 

You may proceed as deemed fit.

Kumar (Propertor)     13 September 2013

Respected  Sir,

I read your reply.  Firstly i want to thank you so much for your quick response.  I am so grateful to you  for all the patience you have shown to

understand and for your valuable advise.

In a trouble state of mind when the MD asked me to get out i did not want to stay there even a minute and could not think anything.

Now it is 5 months over after this.  I was waiting for them to settle my  gratuity and got only  a part of it in spite of me following it up  15 - 20 times.

I will proceed as you suggested if they are not giving it. 

Thank you so much and best regards

Sivakumar


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