Hi,
This is Sureshbabu. I have completed 5 years and 10 months of service in one company, and they are not giving gratuity, stating that the company is in losses. They mentioned that they will provide gratuity once the company becomes profitable. I left the company almost 1 year ago.
Please suggest the approach that I should follow.
Thank you.
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1This is Sureshbabu. I have completed 5 years and 10 months of service in one company, and they are not giving gratuity, stating that the company is in losses. They mentioned that they will provide gratuity once the company becomes profitable. I left the company almost 1 year ago.
Please suggest the approach that I should follow.
Thank you.
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Please approach labour commissioner of the area fir redress.
From India, Pune
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From India, Pune
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Hi,
Please send an email to your ex-employer with their response, stating that it has been more than a year since you promised to pay me the gratuity. If you continue to dodge the issue, I shall have no option but to approach the Labour Commissioner for redress. Give them a two-week deadline and make it clear that you will wait until that date before taking further action in this regard.
Thanks and Regards
From India, Hyderabad
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Please send an email to your ex-employer with their response, stating that it has been more than a year since you promised to pay me the gratuity. If you continue to dodge the issue, I shall have no option but to approach the Labour Commissioner for redress. Give them a two-week deadline and make it clear that you will wait until that date before taking further action in this regard.
Thanks and Regards
From India, Hyderabad
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Hi Saurav,
According to the Gratuity Act, your employer is bound to pay you the gratuity amount instead of incurring losses as you mentioned. What I am suggesting is to get in touch with your ex-employer and send him the screenshot of the Gratuity Act section. Otherwise, you can take the matter to the labor court.
Thanks,
Lalit
Sr. Executive HR
From India, New Delhi
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According to the Gratuity Act, your employer is bound to pay you the gratuity amount instead of incurring losses as you mentioned. What I am suggesting is to get in touch with your ex-employer and send him the screenshot of the Gratuity Act section. Otherwise, you can take the matter to the labor court.
Thanks,
Lalit
Sr. Executive HR
From India, New Delhi
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You can assertively take up the matter of payment of gratuity with your ex-employer. You have every right to receive payment of gratuity from them. Please also refer to the earlier thread in this forum - https://www.citehr.com/602791-if-gra...ml#post2445742
From India, Aizawl
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From India, Aizawl
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Hi,
Before answering your question ,you need to be aware of the legal position as regards paymentt of gratuity which is obligatory on the part of your employer
Section 3 of the Payment of Gratuity Act, 1972 provides for a ‘Controlling Authority’.
Different areas have different controlling authorities that ensure the effective administration of this act.
The act gives the controlling authority the status of a ‘quasi-judicial’ body which implies that it is empowered to adjudicate disputes arising out of non-payment of gratuity.
Upon recipt of your complaint in specified form regarding non paymnet of gratuity by your employer , the Controlling Authority may issue a notice in Form ‘O’ to both the applicant employee and the employer. The two parties will then have to appear before the authority on a specified date, time, and place, given in the notice.
If the employer fails to present himself or an authorized person before the authority, the authority may proceed to hear the case and determine the employee’s application ex parte.
If the employee fails to appear before the authority on the specified date, then the application will be disposed of.
The authority, on hearing the case and examining the facts may pass a direction and issue a notice to the employer if it is established that employee is entitled to gratuity.
A notice is served to the employer in Form ‘R’.
Generally, an Assistant Labour Commissioner of a state is appointed as a controlling authority in a state with the hearing taking place in the office of the Labour Commissioner.
If you have been denied gratuity payment by your employer, you can file a complaint under Section 8 of the act, against the company. The controlling authority, on hearing both sides, if satisfied with the employee’s stance, can direct the employer to pay the gratuity that is due along with the interest on it.
If an employer fails to pay gratuity amount along with interest 30 days after the controlling authority has directed it to do so, the appropriate government, be it Central Government or State Government, whoever is concerned with the employing organization, will authorize the controlling authority to start prosecution against the employer, within 15 days.
Section 9 of the act provides for all penalties that can be imposed on your employer by the Controlling Authority. Your employer will be liable for imprisonment for non-payment of gratuity – up to 6 months which may be extended to 2 years if the controlling authority deems it necessary.
It is not necessary for the employer to be imprisoned for 6 months as, if the controlling authority is of the opinion that a lesser term of imprisonment would suffice, the provision of 6 months of imprisonment would not be applicable.
A penalty amounting to imprisonment of 6 months could also be imposed on your employer if he knowingly makes a false statement or representation to avoid payment of gratuity.
Before proceeding with leagl steps, you need to once aging appeal to the employer to settle your gratuity within 30 days ,pointing out the aforesaid legal consequences .
As long as your company is not declared sick unit , the employer is bound to settle your grauity within 30 days of your leaving the organisation.
P.Senthilkumar
9884009193
From India, Chennai
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Before answering your question ,you need to be aware of the legal position as regards paymentt of gratuity which is obligatory on the part of your employer
Section 3 of the Payment of Gratuity Act, 1972 provides for a ‘Controlling Authority’.
Different areas have different controlling authorities that ensure the effective administration of this act.
The act gives the controlling authority the status of a ‘quasi-judicial’ body which implies that it is empowered to adjudicate disputes arising out of non-payment of gratuity.
Upon recipt of your complaint in specified form regarding non paymnet of gratuity by your employer , the Controlling Authority may issue a notice in Form ‘O’ to both the applicant employee and the employer. The two parties will then have to appear before the authority on a specified date, time, and place, given in the notice.
If the employer fails to present himself or an authorized person before the authority, the authority may proceed to hear the case and determine the employee’s application ex parte.
If the employee fails to appear before the authority on the specified date, then the application will be disposed of.
The authority, on hearing the case and examining the facts may pass a direction and issue a notice to the employer if it is established that employee is entitled to gratuity.
A notice is served to the employer in Form ‘R’.
Generally, an Assistant Labour Commissioner of a state is appointed as a controlling authority in a state with the hearing taking place in the office of the Labour Commissioner.
If you have been denied gratuity payment by your employer, you can file a complaint under Section 8 of the act, against the company. The controlling authority, on hearing both sides, if satisfied with the employee’s stance, can direct the employer to pay the gratuity that is due along with the interest on it.
If an employer fails to pay gratuity amount along with interest 30 days after the controlling authority has directed it to do so, the appropriate government, be it Central Government or State Government, whoever is concerned with the employing organization, will authorize the controlling authority to start prosecution against the employer, within 15 days.
Section 9 of the act provides for all penalties that can be imposed on your employer by the Controlling Authority. Your employer will be liable for imprisonment for non-payment of gratuity – up to 6 months which may be extended to 2 years if the controlling authority deems it necessary.
It is not necessary for the employer to be imprisoned for 6 months as, if the controlling authority is of the opinion that a lesser term of imprisonment would suffice, the provision of 6 months of imprisonment would not be applicable.
A penalty amounting to imprisonment of 6 months could also be imposed on your employer if he knowingly makes a false statement or representation to avoid payment of gratuity.
Before proceeding with leagl steps, you need to once aging appeal to the employer to settle your gratuity within 30 days ,pointing out the aforesaid legal consequences .
As long as your company is not declared sick unit , the employer is bound to settle your grauity within 30 days of your leaving the organisation.
P.Senthilkumar
9884009193
From India, Chennai
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Hi Suresh,
It's already two months elapsed almost since you raised the query/the gratuity became due. Don't know what has happened as on date. If remains the same, please confirm whether you have filed your claims in the prescribed Form I as per the Act. If not, do it immediately under acknowledgment. If they don't acknowledge, send it by registered post acknowledgment due. Follow up within one week. If nothing happens, then you have to send a report of non-payment to the authorities as discussed above. Nothing is lost; if delayed beyond one month or so, you'll get the gratuity with interest till the date of payment. Having no money cannot absolve them from the liability to payment of gratuity.
A specimen Form-I is attached for your use.
From India, Bangalore
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It's already two months elapsed almost since you raised the query/the gratuity became due. Don't know what has happened as on date. If remains the same, please confirm whether you have filed your claims in the prescribed Form I as per the Act. If not, do it immediately under acknowledgment. If they don't acknowledge, send it by registered post acknowledgment due. Follow up within one week. If nothing happens, then you have to send a report of non-payment to the authorities as discussed above. Nothing is lost; if delayed beyond one month or so, you'll get the gratuity with interest till the date of payment. Having no money cannot absolve them from the liability to payment of gratuity.
A specimen Form-I is attached for your use.
From India, Bangalore
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc