If the organisation does not mention about gratuity in its organization policy then can an employee claim for gratuity?
From India, Calcutta
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3From India, Calcutta
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Gratuity is a right conferred by the Statute (Gratuity Act 1972) on the employee but not a bounty to be given by the employer out of grace. Hence, an employee can claim it irrespective of whether or not it is mentioned in the policy or appointment letter.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Dear Mr. Kuldip,
In continuation of the views expressed by the learned members, I would like to add the following:
'Gratuity' is one among the triple terminal benefits, namely gratuity, provident fund, and pension, available to the workmen in India. The Payment of Gratuity Act, 1972, is a social security legislation. That's why the Act has been amended 7 times from 1984 to 2010, extending its coverage, applicability, and other details to achieve the purpose of the enactment stated in its preamble. Therefore, whether stated in the policy of any individual organization or not, the right is still available to its employees.
From India, Salem
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In continuation of the views expressed by the learned members, I would like to add the following:
'Gratuity' is one among the triple terminal benefits, namely gratuity, provident fund, and pension, available to the workmen in India. The Payment of Gratuity Act, 1972, is a social security legislation. That's why the Act has been amended 7 times from 1984 to 2010, extending its coverage, applicability, and other details to achieve the purpose of the enactment stated in its preamble. Therefore, whether stated in the policy of any individual organization or not, the right is still available to its employees.
From India, Salem
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Dear All,
While endorsing the responses by everyone, I would like to point out that the POG Act is applicable to establishments employing 10 or more employees in the past 12 months. Once the Act applies to an establishment, it remains applicable indefinitely. Although all the members who participated in this discussion are aware of this, they somehow missed mentioning it. Govind Ji did include this information in his blog.
Thanks & regards,
Keshav Korgaonkar
From India, Mumbai
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While endorsing the responses by everyone, I would like to point out that the POG Act is applicable to establishments employing 10 or more employees in the past 12 months. Once the Act applies to an establishment, it remains applicable indefinitely. Although all the members who participated in this discussion are aware of this, they somehow missed mentioning it. Govind Ji did include this information in his blog.
Thanks & regards,
Keshav Korgaonkar
From India, Mumbai
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Hi,
The Payment of Gratuity Act, 1972 is applicable to establishments or factories where 10 or more employees are working. Even though your company policy explicitly states on gratuity, as per statute, this Act will apply to your organization. However, gratuity is applicable only when the employee has put in continuous service of 5 years.
With regards,
BV Sudhakar
From India
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The Payment of Gratuity Act, 1972 is applicable to establishments or factories where 10 or more employees are working. Even though your company policy explicitly states on gratuity, as per statute, this Act will apply to your organization. However, gratuity is applicable only when the employee has put in continuous service of 5 years.
With regards,
BV Sudhakar
From India
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Dear Kuldip,
I always said that no company's policy is above the law. As stated by many, it is a statutory right of an employee and cannot be evaded under any circumstances. Rest assured, if you complete 4 years and 240 days in your company, you are entitled to gratuity irrespective of any company policy.
From India, New Delhi
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I always said that no company's policy is above the law. As stated by many, it is a statutory right of an employee and cannot be evaded under any circumstances. Rest assured, if you complete 4 years and 240 days in your company, you are entitled to gratuity irrespective of any company policy.
From India, New Delhi
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Thank you all for the information. I do understand that gratuity is applicable only after completing 5 years of service. If the organization refuses to pay gratuity, citing reasons such as running at a loss, no profit, etc., can the employees claim or take the matter to court?
From India, Calcutta
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From India, Calcutta
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Dear Kuldip,
Our senior members have rightly portrayed the applicability and coverage of PGA. I would only add flavor to the discussions through the following points.
- Irrespective of gain or loss, the employer is bound to pay the eligible employee, as per the Act in vogue.
- You apply for gratuity within 30 days from the date it becomes eligible to the employer. The nominee/legal heirs of the eligible employee can also apply in the said time zone. It can even be applied on plain paper with RELEVANT PARTICULARS by the nominee or legal heirs.
- Even after the expiry of the above period, you can apply for the same if you show sufficient reasons for the delay in preferring your claim, and the employer cannot reject your claim on this ground.
- Any dispute that arises regarding the payment of gratuity, you may approach the Controlling authority, in writing, directly in person or through registered post within ninety days of the occurrence of the cause, who will then direct the employer for further course of action. Generally, the Assistant Labour Commissioner of your region will be the Controlling authority. Here also, you can apply after the expiry of ninety days if you show valid reasons for any delay in approaching the Controlling Authority for his direction.
Regards,
P. Vathiraj
From India
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Our senior members have rightly portrayed the applicability and coverage of PGA. I would only add flavor to the discussions through the following points.
- Irrespective of gain or loss, the employer is bound to pay the eligible employee, as per the Act in vogue.
- You apply for gratuity within 30 days from the date it becomes eligible to the employer. The nominee/legal heirs of the eligible employee can also apply in the said time zone. It can even be applied on plain paper with RELEVANT PARTICULARS by the nominee or legal heirs.
- Even after the expiry of the above period, you can apply for the same if you show sufficient reasons for the delay in preferring your claim, and the employer cannot reject your claim on this ground.
- Any dispute that arises regarding the payment of gratuity, you may approach the Controlling authority, in writing, directly in person or through registered post within ninety days of the occurrence of the cause, who will then direct the employer for further course of action. Generally, the Assistant Labour Commissioner of your region will be the Controlling authority. Here also, you can apply after the expiry of ninety days if you show valid reasons for any delay in approaching the Controlling Authority for his direction.
Regards,
P. Vathiraj
From India
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In our company, earlier it was not a Ltd. company, but now it has changed to a Pvt. Ltd. company. Recently, 4 months have been completed. I have completed 3 & 1/2 years in this organization. Is gratuity applicable? Is my earlier service considered? Kindly give some suggestions for this.
From India, Hubli
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From India, Hubli
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