I filed my application dated 15.10.2012 in Form "I" Application for Gratuity (to the employer) and Form "N" Application for Direction with ALC (Central) Karnal for payment of Gratuity. The establishment M/S Alchem International with a turnover of Rs 250 Crores has factories in Faridabad (Haryana) and Neemrana (Rajasthan) with HO in Delhi, Procurement office (for Glorosia leaves) in Mulanoor (Tamil Nadu). The company is processing naturally occurring herbal plants, leaves, roots, and exports high-value extracts and herbal drugs pricing at a few lakhs per kg. I was AVP in the Faridabad factory and worked for 6 years. Due to the unfortunate sudden and successive demise of my mother and two brothers during 2006 and 2008, I was in deep shock and distress. Coupled with it was my wife's ailment of Arthritis. In such a situation, I decided to leave the company, explained to the Promoters, and submitted my resignation on 22.8.2009 with one month notice period as per the terms of the Appointment letter. But the company relieved me immediately on 24.8.2009 without settlement of salary, gratuity, leave pay, etc. I approached the management with 10 reminders for payment of Gratuity, but the company did nothing to hear/arrange/deny payment for 3 years. As a well-wisher and friend, one JLC, retired from TN government, advised me to file Form N with ALC (Central) since the establishment has factories and offices in multi-state. ALC (Central) Karnal took about a year to decide the Jurisdiction issue and passed order in favor of the company. In his order, ALC recorded my background details as aforesaid but rejected my filing and informed that being a factory, the appropriate authority is state government but not the central. In view of the above,

1. Shall I go ahead for Appeal?

2. Shall I accept the order and file with the state? If so, please send relevant forms under Haryana state Gratuity rule (instead of Form "I" and "N" as in the case of central) as I belong to Tamil Nadu.

From India, Chennai
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Hi,

You should file the same claim before the Controlling Authority under the Payment of Gratuity Act in Faridabad (Labour Officer, Faridabad) where you served. Management always tries to take advantage of jurisdiction, as in your case. Your stance should be that you were appointed and last worked in Faridabad. One should stand up for their rights.

Thanks and all the best,

V K Gupta

From India, Panipat
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Dear Aiyer,

I have gone through the details of your post. The jurisdictional issue needs to be decided with reference to the question as to who is the appropriate government for your factory. The appropriate government has been defined by sec. 2(a) of the Payment of Gratuity Act 1972 as follows:

Appropriate Government means --

(i) in relation to an establishment --

a) belonging to or under the control of the Central Government,
b) having branches in more than one State,
c) of a factory belonging to or under the control of the Central Government,
d) of a major port, mine, oil field, or railway company, the Central Government

(ii) in any other case, the State Government.

From the above definition, it is clear that the Central Government can be the appropriate government only in the case of establishments (not factories) having branches in more than one State. In the case of a factory, the Central government will be the appropriate government only when it belongs to the central government. In your case, Alchem International, I presume, neither belongs to nor runs under the control of the Central Government, and therefore the appropriate government for the above factory is the State Government even though it has units in more than one state. The ALC (Central) has rightly decided the jurisdictional issue. You may, therefore, have to file your application afresh before the Asst. Labour Commissioner (State) under which jurisdiction Faridabad falls. Please note to claim interest for the period of delay since it is not due to any fault of yours. Please procure the relevant forms under Haryana State Rules as I do not have them or members can respond to your request.

Hope this helps.

B. Saikumar

From India, Mumbai
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