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NOEL PHILIP (PROFESSOR)     18 March 2014

Self financing engineering college

Dear Sir,

Recently I resigned from the post of professor , working for the past 15 years for the better future from one of the leading Self financing  Engineering College situated at Chennai.When I asked about the gratuity the college management said there is no policy and also no rules for giving gratuity under pvt. college category.Kindly guide me to get the  gratuity amount.


 4 Replies

Kumar Doab (FIN)     19 March 2014



You may shift from asking, telling, saying mode to written mode.















If the establishment employed 10 persons at a point of time then you might be eligible for payment of Gratuity as well. There is no wage ceiling on Gratuity.

You may submit a representation to the good offices of Appointing Authority, MD, Chairman with a copy to Head-HR, local HR, and mention that the Notice of Determination of Gratuity has not been supplied to you, despite representations ( if any by phone, emails, in person, by letter etc and provide dates, time, phone numbers, Names of company officials, brief minutes of discussion etc) in office and FormI is attached, and demand acknowledgment and payment of Gratuity by Bank DD thru Redg. Post only. You may send the representation by redg. Post ( and obtain POD and certified copy of run sheet of postman from PO) and mention that a postage prepaid, self addressed envelope for sending the Redg. Post to you is attached.

The employer has to supply Notice of Determination of Gratuity and pay within 30 days of becoming eligible, even if NO application by employee is made.

(Basic+DA)/26*15* No. of years of service
Basic+DA is as per last drawn wages, so obtain last salary slip.

If in last year you have worked for more than 6months count it as 1Year. 

In case of delay you are entitled for interest @10%pa.
If the good offices also do not provide any relief you may approach Controlling Authority of Gratuity.

If the need be quote following:


The Payment of Gratuity (Amendment) Act, 2009 (No.47 of 2009) [ 31st December, 2009]



The Payment of Gratuity (Amendment) Bill, 2009 was passed by both the Houses of Parliament has amended the definition of ‘employee’ contained in the Payment of Gratuity Act, 1972 for covering teachers in private institutions.

Refer to the current definition of Sec: 2(e) in Payment of Gratuity Act, 1972………….


It is applicable with retrospective effect from 1997.

There are many judgments delivered after the amendment.  

>>> Payment of Gratuity Act, 1972
: 2(e), 2A, 4, 7, 8, 9


>>> Various decisions of court of law may be quoted.

There are many threads on similar queries that you may find relevant and you can download judgments also, e.g;



Attached File : 155438306 paymentofgratuityact(1).doc, 155438306 gratuity.pdf downloaded: 166 times
1 Like

NOEL PHILIP (PROFESSOR)     25 March 2014

Thank you very much sir for your valuable advice and reference

NOEL PHILIP (PROFESSOR)     27 March 2014

Sir Can you tell me the present maximum ceilling of Gratuity.I heard from people that the amount was raised from 3.5 lakhs to 10 lakhs but the bill was not passed by Raja Sabha and also no Gazette publication.pls correct me.

Kumar Doab (FIN)     30 March 2014

The enhancement is notified in the gazette on 17th May, 2010.

The Payment of Gratuity (Amendment) Act, 2010: 

(No.15 of 2010)

It is attached and you can also download from net or buy from market.


Above Rs.10 Lac the Gratuity paid by employer may be subjected to tax treatment.


As per Section10(10)(ii) of Chapter Three of Income Tax Act,1961 gratuity payable to employees covered under Payment Of Gratuity Act,1972 is exempt from income tax subject to the provisions of subsection 2 and 3 of section 4.Subsection 2 gives the rate of calculation of gratuity and subsection 3 gives the maximum limit of payable gratuity as Rs.3.5 lakhs ( Rs. 10 Lakhs after amendment).


Your CA , Income Tax lawyer can guide you further.

Attached File : 1006329421 sealingenhancement.pdf downloaded: 62 times

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