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mohit (asst. accounts officer)     24 October 2013

Notification period/gratuity/bonus

On 27th August 2013, I was forced to present my resign letter to management. According to them I was not giving proper output of my designation. On 31st August 2013 they shown me the cheque payment of my August month salary and instructed to sign full and final settlement. Which i have not accepted and asked them to pay it with my gratuity, notification period compensation, Diwali bonus payment compensation and EPF form signing as I joined that company (a establishment providing men power supply to bank and telecom sectors) in 7th May 2007 and completed 6 years 3 months.

But they replied “we don’t pay any kind of gratuity to any employee”. When I tried to convince them they offered me only 15 days extra salary as notification period compensation.  I tried to convince them more by face to face, mobile and e-mail conversation as my entry in establishment premises was restricted after 31st August 20013 . Finally on 23rd October 2013 they offered me to settle with full and final payment of Rs. 50,000/- (where i withdrawn my last salary @ 17,000/- pm and increment awaited from more then 1.5 years and never paid any kind of bonus). I personally shared this matter with someone he suggested me “try to make it finish mutually and avoid any complain to labor commissioner as it is very lengthy procedure”. But as I expect Rs. 50,000/- is not completing the half part of my total full and final payment which I am proposed after taking follow up or requesting them 1 month 23 days long period and I am losing hope of getting solution by mutual talks.   

I am seeking instructions by experts like you where I am having only my digitally printed I-Card (showing date of joining), my outlook data of my working communications and last 5-6 bank transaction of my salary transferred in to my bank account, and my EPF account no. only.

Kindly guide me to stop employer’s play with future of needy employee like me and my previous staff in that establishment. 



Learning

 5 Replies

Kumar Doab (FIN)     24 October 2013

 

>> Gratuity:

 

 

 

If Payment of Gratuity Act is applicable to your establishment you should be eligible for payment of gratuity.

 

You may go thru:

 

 Section: 1:Short title, extent, application and commencement: (3) (a) (b) (c), 3A……………………

 

Submit FormI as ap by redg. post. There is no wage ceiling for payment of gratuity.

 

Write to good offices of appointing authority, MD etc………………that you have been asking for it and no notice for Determination of Gratuity has been supplied to you.

 

>> Bonus; If Payment of Bonus Act, 1965 is applicable to your establishment you may go thru it.

It is applicable to all employee be it even managerial except excluded category of employees {Section 32}

 

For the purpose of calculation of bonus a salary or wage includes a basic salary or wage and dearness allowance…………………{Section 2(21)}

 

 

{{{ You may go thru the break up of salary as shown in your EPF statement, pay slip.

If company has paid EPF on Rs.6500/only claim it as your basic salary.}}

 

 

Every employee who is drawing a salary or wage upto Rs. 10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}

 

 

To avoid penalty employer should pay bonus within 30th Nov.

 

 

{Other option is that:

THE PAYMENT OF BONUS (AMENDMENT) BILL, 2012

has been introduced in Rajya Sabha. If it passed and notified in the Gazette with retrospective effect you should be eligible to get bonus.}

 

 

 

>> Appointment letter/Pay Slip/Wage Slip:

 

As per Shops and Commercial establishment’s act of many states it is mandatory of issue appointment letter. The employer has to maintain forms/formats/registers of payment of wages to employees and maintain record.

 

Payment of Wages Act: (Applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm)

 

It is mandatory to issue Wage Slip to employee and employer and employee should sign it and to maintain the record.{Sec13A}

You may demand all wage slips of all years.

 

The time for payment of wages including FNF wages is last day in office/usual pay day………….{Sec 2: 3(vi) (d)}

 

If FNF statement is incorrect and/or your acceptance is obtained by force, coercion declare acceptance by force, coerce, intimidation, and withdraw acceptance and decline to  accept …………………….

 

>> PF: Approach RPFC in local o/o Labor Commissioner.

 

>> ESIC: Wage ceiling is Rs.15000/pm and has recently been increased to Rs.25000/pm.

Approach Inspector in local or jurisdictional office.

 

{{{ You may go thru the break up of salary as shown in your EPF statement, pay slip.

If company has paid EPF on Rs.6500/only claim it as your basic salary.}}

 

Form 16: Lodge complaint with ITO-TDS where you file return and jurisdictional CIT-TDS where company files its return.

 

It shall be appropriate to show all of your docs and record to a competent and experienced labor consultant/service lawyer and proceed under expert advice.

 

The lawyer that has seen all of your docs can advise you the best.

 

 

 

 

 

Sudhir Kumar, Advocate (Advocate)     24 October 2013

well elaborated by Mr Kumar Doab

mohit (asst. accounts officer)     26 October 2013

Thanks for your detailed information Sir !

Kindly clear some confusion also :

1.   1.  When I joined this proprietorship establishment the employee strength was more than 10 and it is increased to 250 or more also (as per esic & epf records). Later this establishment converted to pvt. ltd. with same proprietor as director. The company providing its services coverage to PAN india level as man power supply contractor. Is the gratuity act is applicable here?

 

2.      2. I tried to convince major MDs and HR head also but I got disappointment only after having conversation like I am the first to ask gratuity. As MD is also belongs to advocates circle I am afraid of being harassed more if they are not agreed to pay me gratuity. I am only having my digitally printed plastic I- Card (showing date of joining), my outlook data of my working communications, last 5-6 bank transaction of my salary transferred in to my bank account, snap of last salary payment voucher and my EPF account no. (as per EPF return) only. Are these documents sufficient to go further way?

Kumar Doab (FIN)     26 October 2013

1. Go thru Payment of Gratuity Act 1972:  Section: 1:Short title, extent, application and commencement: (3) (a) (b) (c), 3A…………..carefully.

If you have not resigned from Prop. firm and join Pvt. Ltd  firm there should be no braek in service. Even if you have your lawyer may advise that it was an artificial break created to circumvent the payment of gratuity.

2. Even if the MD is a Minister the establishment to which Act is applicable has to pay Gratuity to all eligible employees.

Submit FormI under redg. post and mention M/s…………….Pvt Ltd/Previously M/s………….

 

 

ESIC,EPF, Digital I Card, Forms and Formats under Payments of wages Act, Shops and Commercial establishments Act should suffice as record of employment, DOJ in salary slip, service card…………….. should suffice.

For issues on expected harassment or other issues It shall be appropriate to show all of your docs and record to a competent and experienced labor consultant/service lawyer and proceed under expert advice.

 

The lawyer that has seen all of your docs can advise you the best.

1 Like

Sudhir Kumar, Advocate (Advocate)     27 October 2013

agreed with Mr Kumar Doab.

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