PRAVEEN MUTREJA 28 June 2021

Gratuity claim

DEAR FRIENDS,

PLEASE HELP ME TO FIGHT OUT THE GRATUITY CLAIM SCENE. I HAD WORKED FOR A PRIVATE LIMITED COMPANY FOR AROUND 6.5 YEARS. AT THE TIME OF APPOINTMENT THE EMPLOYER SHOWED THE GRAUTITY AS A PART OF CTC BUT I OBJECTED AND ASKED THEM TO MENTION "GRAUITY BEING EXCLUDING THE CTC" THEY DID MENTION THE SAME BUT ALSO INTENTIONALLY MENTIONED ''GRATUITY NOT APPLICABLE". THEY GOT MY SIGNATURE ALSO ON THAT APPOINTMENT LETTER.

WHEN I LEFT THE JOB AND ASKED FOR THE GRATUITY THE EMPLOYER DENIED AND SAID YOU SIGNED THE APPOINTMENT LETTER THEN YOU DON'T HAVE ANY RIGHT, BUT I RAISED THE CONCERN THAT AFTER WORKING FOR MORE THEN 05 YEARS GRATUITY IS MANDATORY AND ONE CAN'T BE DEPRIVED OF THE SAME EVEN IF YOU GOT THE SIGNATURE OF EMPLOYEE OVER THAT, AS THAT ALSO BECOME ILLEGAL.

NOW EMPLOYER IS NOT RESPONDING, PLEASE HELP ME TO SORT THIS OUT, MY GRATUITY AMOUN IS AROUND 2.25LACS AND IT IS A HUGE AMOUT FOR ME.

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4 Replies

G.L.N. Prasad (Retired employee.) 28 June 2021

First issue legal notice to the competent designated person (Gratuity officer), wait for a month and meet Local Labour Commissioner for their guidance in filing complaint.

Dr J C Vashista (Advocate) 29 June 2021

Gratuity is part and parcel of CTC which you have opted out at the time of appointment, where is the question of payment despite the fact you are eligible.

Consult a local prudent lawyer for appreciation of facts/ documents and professional advise.

P. Venu (Advocate) 29 June 2021

You are entitled for gratuity. There is no question that it had been "contracted out".. The issue may be taken up with the Controlling Authority for initiating action in terms of the provisions of Section 8:

8. Recovery of Gratuity.- If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, 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:

Provided that the Controlling Authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case, exceed the amount of gratuity payable under this Act.