Dear senior HR member,
I have a query regarding my gratuity payable by my last organization. In my last organization, I worked for 4 years, 11 months, and 23 days (just 1 week less than 5 years). I have asked the employer to release my gratuity as per the government regulations.
As far as I know, gratuity is payable to any employee who has had continuous employment for more than 4 years and 240 days. However, my organization has refused to release the payment, stating that I am not eligible.
I kindly request the senior HR and IR members to please respond. If I am eligible for gratuity, what are the steps/actions I should follow to inform my last organization to release my gratuity amount?
Thanks and Regards,
RP
From India, Vadodara
Acknowledge(0)
Amend(0)
I have a query regarding my gratuity payable by my last organization. In my last organization, I worked for 4 years, 11 months, and 23 days (just 1 week less than 5 years). I have asked the employer to release my gratuity as per the government regulations.
As far as I know, gratuity is payable to any employee who has had continuous employment for more than 4 years and 240 days. However, my organization has refused to release the payment, stating that I am not eligible.
I kindly request the senior HR and IR members to please respond. If I am eligible for gratuity, what are the steps/actions I should follow to inform my last organization to release my gratuity amount?
Thanks and Regards,
RP
From India, Vadodara
Acknowledge(0)Amend(0)
Please ask your HR to read this post: [What is Gratuity - Understanding Taxes](http://www.investmentyogi.com/taxes/what-is-gratuity.aspx). You are indeed eligible for your gratuity claim. For the procedure to claim, the seniors would be the best to guide you further.
In my opinion, talk to your HR and ask why you are not eligible for gratuity. If HR states that you fall short of 1 week for 5 years, mention that you are aware that 4.8 months are enough to be eligible. If there are any other issues, check if those could be resolved.
From India, Mumbai
Acknowledge(0)Amend(0)
754In my opinion, talk to your HR and ask why you are not eligible for gratuity. If HR states that you fall short of 1 week for 5 years, mention that you are aware that 4.8 months are enough to be eligible. If there are any other issues, check if those could be resolved.
From India, Mumbai
Acknowledge(0)Amend(0)
Please ask your HR to read this post: [What is Gratuity - Understanding Taxes](http://www.investmentyogi.com/taxes/what-is-gratuity.aspx). You are very much eligible for your gratuity claim. When it comes to the procedure to claim, seniors would be the best to guide you further.
In my opinion, talk to your HR and ask why you are not eligible for gratuity. If HR says that you fall short of 1 week for 5 years, you can mention that you are aware that 4.8 months are enough to be eligible. If there are any other issues, check if those could be resolved.
From India, Mumbai
Acknowledge(0)Amend(0)
In my opinion, talk to your HR and ask why you are not eligible for gratuity. If HR says that you fall short of 1 week for 5 years, you can mention that you are aware that 4.8 months are enough to be eligible. If there are any other issues, check if those could be resolved.
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you, Ankita, for your response. However, I have already done this. I have also sent them many high court case studies on similar issues and many legal documents mentioning the law. However, they are not agreeing to release the same. I would like to know how I should proceed further with legal steps.
Thank you,
Ronak
From India, Vadodara
Acknowledge(0)Amend(0)
Thank you,
Ronak
From India, Vadodara
Acknowledge(0)Amend(0)
I suggest you quote the high court judgement and send a letter to your organization before you go further on legal aid.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
You can send a letter to the company with the SC's guidelines.
You can lodge a complaint with 'The Competent Authority under the Gratuity Act' at the local Government Labor Office and attach a copy of that letter to the letter to GLO.
From India, Pune
Acknowledge(0)Amend(0)
You can lodge a complaint with 'The Competent Authority under the Gratuity Act' at the local Government Labor Office and attach a copy of that letter to the letter to GLO.
From India, Pune
Acknowledge(0)Amend(0)
Dear Ronak,
You should send a written petition to the employer by speed post so that you will receive an acknowledgement. Wait for a few days for their reply, but if there is no response, then file a complaint with the commissioner under the Gratuity Act. The regional Labour Commissioner/Assistant Commissioner would be the designated authority.
Section: 9
Penalties for Non-Payment of Gratuity:
(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 a fine which may extend to ten thousand rupees, or with both.
Regards,
Anita
From India, Mumbai
Acknowledge(0)Amend(0)
You should send a written petition to the employer by speed post so that you will receive an acknowledgement. Wait for a few days for their reply, but if there is no response, then file a complaint with the commissioner under the Gratuity Act. The regional Labour Commissioner/Assistant Commissioner would be the designated authority.
Section: 9
Penalties for Non-Payment of Gratuity:
(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 a fine which may extend to ten thousand rupees, or with both.
Regards,
Anita
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Ronak,
In my opinion, you should resend Form I under the Gratuity Act via speed post to the employer. If the employer refuses payment, then you should approach the Controlling Authority, i.e., the Labour Court or the Labour Commissioner/Inspector, with proof of the acknowledgment copy of Form I that you had previously sent to the principal employer.
Thanks & Regards,
Yogesh Rathor
#9990080078
From India, Chandigarh
Acknowledge(0)Amend(0)
In my opinion, you should resend Form I under the Gratuity Act via speed post to the employer. If the employer refuses payment, then you should approach the Controlling Authority, i.e., the Labour Court or the Labour Commissioner/Inspector, with proof of the acknowledgment copy of Form I that you had previously sent to the principal employer.
Thanks & Regards,
Yogesh Rathor
#9990080078
From India, Chandigarh
Acknowledge(0)Amend(0)
Dear Mr. RP,
As discussed in the forum by some of our senior members, you may go ahead with the legal action. The following sections would benefit and strengthen your case further.
Section 8 of The Payment of Gratuity Act, 1972, talks about the recovery of gratuity from the employer wherein it states that "if the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case, exceed the amount of gratuity payable under this Act."
Section 3 of the Act talks about the controlling authority wherein it states that "the appropriate Government may, by notification, appoint any officer to be a controlling authority, who shall be responsible for the administration of this Act and different controlling authorities may be appointed for different areas."
Sub-section (1) of Section 4 talks about the eligibility period of gratuity wherein it states that Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years -
(a) On his superannuation, or
(b) On his retirement or resignation, or
(c) On his death or disablement due to accident or disease:
Section 2A speaks about "continuous service" wherein sub-section (1) states that an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;
Subsection (2) further clarifies as "Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-
(a) For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-
(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) Two hundred and forty days, in any other case;
From India
Acknowledge(0)Amend(0)
As discussed in the forum by some of our senior members, you may go ahead with the legal action. The following sections would benefit and strengthen your case further.
Section 8 of The Payment of Gratuity Act, 1972, talks about the recovery of gratuity from the employer wherein it states that "if the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case, exceed the amount of gratuity payable under this Act."
Section 3 of the Act talks about the controlling authority wherein it states that "the appropriate Government may, by notification, appoint any officer to be a controlling authority, who shall be responsible for the administration of this Act and different controlling authorities may be appointed for different areas."
Sub-section (1) of Section 4 talks about the eligibility period of gratuity wherein it states that Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years -
(a) On his superannuation, or
(b) On his retirement or resignation, or
(c) On his death or disablement due to accident or disease:
Section 2A speaks about "continuous service" wherein sub-section (1) states that an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;
Subsection (2) further clarifies as "Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-
(a) For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-
(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) Two hundred and forty days, in any other case;
From India
Acknowledge(0)Amend(0)
1. Send a requisition letter to the concerned authority of the organization stating your date of joining and leaving for the amount of Gratuity.
2. Send a reminder letter after 15 days, clarifying that it is a notice.
3. Approach the Controlling Authority under the Payment of Gratuity Act, 1972, by submitting the form and related details.
4. Appear before the Controlling Authority. There are enough case citations in favor.
From India, Pondicherry
Acknowledge(0)Amend(0)
2. Send a reminder letter after 15 days, clarifying that it is a notice.
3. Approach the Controlling Authority under the Payment of Gratuity Act, 1972, by submitting the form and related details.
4. Appear before the Controlling Authority. There are enough case citations in favor.
From India, Pondicherry
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Payment of Gratuity Act, 1972 & The Rules.ppt
FORM - F (TN Payment of Gratuity Rules, 1973).xls
Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf