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Kumar R (Team Leader)     25 June 2013

Is gratuity mandatory?

HI,

I've a query regarding my gratuity, I've worked for a MNC for almost 6 and half years and my last day with this company is June 30th. I would like to know few things:

1. Whether gratuity is mandatory for all companies.

2. When I joined this company there were 15 employees, but currently there are 6 employees. is this going to be a hurdle for me in getting a gratuity?

3. In case if my employer deny to pay me gratuity, can I take a legal action?

It would be very helpful, if you could help me out in clarifying these queries.

Regards,

Kumar R



Learning

 3 Replies

Kumar Doab (FIN)     25 June 2013

 

You may submit FormI as ap under proper acknowledgment preferably thru redg. post.

If anyone shows any tantrums, draw the attention to word “Whoever” in Section9……..

 

Payment of Gratuity Act, 1972:

An Act to provide for a scheme for the payment of gratuity to employees engaged in factories…………….. shops or other establishments……………..

 

Section: 1
Short title, extent, application and commencement

 

(3) It shall apply to­ -

(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months,…………………

(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]

………….

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.

{ It is another fact that companies do not issue such notice and authorities do not apply checks and controls.}

 

(1) A person who is eligible for payment of gratuity under this Act………….. shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

 

{You may submit FormI as ap under proper acknowledgment preferably thru redg. post}

 

 

 

Section: 9
Penalties.

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.

(2) An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made there under shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both:

 

 


Attached File : 166232855 paymentofgratuityact(1).doc downloaded: 351 times

Kumar R (Team Leader)     26 June 2013

Hi,

In case if our organization had more than 10 employees before 20 months, is there any chance that I can get my gratuity?

Regards,

Kumar R

Kumar Doab (FIN)     26 June 2013

The applicable sections were highlighted and given colour code, and Act was attached for your convenience.

In case you are not able to handle the company on your own, approach your lawyer.


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