I work for an American company that runs an outsourced center in Bangalore and is registered as a Pvt Ltd company. I'm completing my notice period and have worked here for about 8 years. When I checked with the HR regarding the gratuity, I was told that they do not follow that practice in the company. Can a company choose to pay gratuity or not, and if necessary, what actions can an employee take to receive the gratuity amount?
From India, Bangalore
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From India, Bangalore
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Dear,
If a company has 10 or more employees, this act is applicable to them. There is no choice, and they are bound to pay gratuity. You can file a case before the controlling authority under the Payment of Gratuity Act 1972.
From India, Delhi
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174If a company has 10 or more employees, this act is applicable to them. There is no choice, and they are bound to pay gratuity. You can file a case before the controlling authority under the Payment of Gratuity Act 1972.
From India, Delhi
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Dear Malick,
My husband worked for a PVT LTD firm for the last 11 years, and this year they told him to search for a new job as they don't have the business to retain employees. Now, they are giving excuses for gratuity, saying that the company is in a bad economic state. On the other hand, the company never provided any PF, ESI, or other benefits, paid cash salaries until 2008, and then by cheques. They have also sent my husband to a number of locations while on the job.
In this case, should we expect gratuity, and what should be the approximate amount? He started with 3,000, and at the time of leaving the job, he was drawing 17,500.00. Presently, we are located in Mumbai, and the company's head office is in Delhi.
Kindly help.
From India, Mumbai
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My husband worked for a PVT LTD firm for the last 11 years, and this year they told him to search for a new job as they don't have the business to retain employees. Now, they are giving excuses for gratuity, saying that the company is in a bad economic state. On the other hand, the company never provided any PF, ESI, or other benefits, paid cash salaries until 2008, and then by cheques. They have also sent my husband to a number of locations while on the job.
In this case, should we expect gratuity, and what should be the approximate amount? He started with 3,000, and at the time of leaving the job, he was drawing 17,500.00. Presently, we are located in Mumbai, and the company's head office is in Delhi.
Kindly help.
From India, Mumbai
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A company cannot escape payment of gratuity to eligible employees by saying that it is running losses. At the same time, it is the obligation of the company to pay it within 30 days of the employee leaving, EVEN IF THE EMPLOYEE DOES NOT ASK FOR IT. In other words, if the employee is not traceable, the company should DEPOSIT the amount with the Government (Labour Department); failing which, the company will be constrained to pay interest.
In the above circumstances, there is nothing wrong in demanding gratuity by sending an application in Form I (attached). If no intimation is received from the company (the company is expected to intimate the date of payment of gratuity in Form L) within 30 days, file a complaint before the District Labour Officer. You will get it.
The amount of gratuity is equal to 15 days' salary for every completed year of service. If there is a fraction of a year of more than six months, it shall be taken as one year, whereas a fraction of a year of less than six months shall be ignored. Salary for this purpose will include basic salary and dearness allowance only, and the gratuity is calculated on the LAST DRAWN SALARY.
Regards,
Madhu.T.K
From India, Kannur
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In the above circumstances, there is nothing wrong in demanding gratuity by sending an application in Form I (attached). If no intimation is received from the company (the company is expected to intimate the date of payment of gratuity in Form L) within 30 days, file a complaint before the District Labour Officer. You will get it.
The amount of gratuity is equal to 15 days' salary for every completed year of service. If there is a fraction of a year of more than six months, it shall be taken as one year, whereas a fraction of a year of less than six months shall be ignored. Salary for this purpose will include basic salary and dearness allowance only, and the gratuity is calculated on the LAST DRAWN SALARY.
Regards,
Madhu.T.K
From India, Kannur
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Dear Jaya Keerthi,
A company employing 10 or more employees has to pay gratuity to its employees upon separation from the company, provided they complete continuous service of 5 years (one year's service in the case of death). Since you have completed 5 years of service, you can apply for the payment of gratuity in Form I to your employer under the Payment of Gratuity Act. If your company does not pay the gratuity, you can approach the Labour department. The concerned Assistant Commissioner of Labour is the controlling authority under the Act.
D. Phani Kumar
Sr. Manager - P&A
Zuari Cement Ltd.
An Italcementi Group.
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A company employing 10 or more employees has to pay gratuity to its employees upon separation from the company, provided they complete continuous service of 5 years (one year's service in the case of death). Since you have completed 5 years of service, you can apply for the payment of gratuity in Form I to your employer under the Payment of Gratuity Act. If your company does not pay the gratuity, you can approach the Labour department. The concerned Assistant Commissioner of Labour is the controlling authority under the Act.
D. Phani Kumar
Sr. Manager - P&A
Zuari Cement Ltd.
An Italcementi Group.
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Dear Mr. Madhu,
Thank you for your reply and the form.
One more thing I want to share is that my husband has been working there since August 2000 without any offer or appointment letter. Can we go ahead and claim gratuity?
We only have one promotion letter from 2008 and some address proofs on the company's letterhead.
I am hereby describing below his experience with the company:
Organization: XYZ (I) PVT LTD
Duration: From August 2000 to Till Date
Designation & Job Responsibilities: As Follows
Manager Operations - From April 2007 to till date in Mumbai Branch Office.
Field Officer – From 2006 to 2007 in Bangalore Branch Office
Field Officer – From 2005 to 2006 in Kolkata Branch Office
Field Officer – From 2004 to 2005 in Mumbai Branch Office
Sr. Plumber – From 2002 to 2004 in Mumbai Branch Office at Site – Proctor & Gamble, Andheri.
Plumber – From 2001 to 2002 in Delhi Head Office at Site – Polyplex, Noida.
Plumber – from 2000 to 2001 in Delhi Head Office at Site – Apollo Tyres, Gurgaon.
Awaiting senior's reply.
From India, Mumbai
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Thank you for your reply and the form.
One more thing I want to share is that my husband has been working there since August 2000 without any offer or appointment letter. Can we go ahead and claim gratuity?
We only have one promotion letter from 2008 and some address proofs on the company's letterhead.
I am hereby describing below his experience with the company:
Organization: XYZ (I) PVT LTD
Duration: From August 2000 to Till Date
Designation & Job Responsibilities: As Follows
Manager Operations - From April 2007 to till date in Mumbai Branch Office.
Field Officer – From 2006 to 2007 in Bangalore Branch Office
Field Officer – From 2005 to 2006 in Kolkata Branch Office
Field Officer – From 2004 to 2005 in Mumbai Branch Office
Sr. Plumber – From 2002 to 2004 in Mumbai Branch Office at Site – Proctor & Gamble, Andheri.
Plumber – From 2001 to 2002 in Delhi Head Office at Site – Polyplex, Noida.
Plumber – from 2000 to 2001 in Delhi Head Office at Site – Apollo Tyres, Gurgaon.
Awaiting senior's reply.
From India, Mumbai
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Dear Yaasmin,
Before giving you any suggestion, we need to know the employment conditions of your husband. If your husband has worked on a retainership basis, then the applicability of PF/ESI/Gratuity depends on the terms mentioned in the employment contract and it's not obligatory on the part of the employer. If your husband has worked as a regular employee, then the applicability of PF/ESI/Gratuity is a must; otherwise, it depends on the terms mentioned in the employment contract.
Regards,
From India, Pune
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Before giving you any suggestion, we need to know the employment conditions of your husband. If your husband has worked on a retainership basis, then the applicability of PF/ESI/Gratuity depends on the terms mentioned in the employment contract and it's not obligatory on the part of the employer. If your husband has worked as a regular employee, then the applicability of PF/ESI/Gratuity is a must; otherwise, it depends on the terms mentioned in the employment contract.
Regards,
From India, Pune
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Dear Jayakeerthi As informed by Madhu Please proceed. You have to get the gratuity. With warm regards S. Bhaskar 9099024667
From India, Kumbakonam
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From India, Kumbakonam
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