Sir, I have resigned from the company after working for 12 years. I informed my company that I am entitled to gratuity, but they refused, stating that there is no agreement in place for gratuity. Could you please advise me on whether I am eligible for gratuity or not? My company continues to pay my salary without any deductions, including no deductions for PL, CL, or PF.
From India, Mumbai
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1From India, Mumbai
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Dear Mr. Y Ravi,
Yes, you are eligible for the gratuity. I recommend that you fill out Form 1 of the Gratuity Act and submit it to the HR Department. Obtain a signature on the photocopy of the form. If HR refuses to sign, then send it via Speed Post with acknowledgment due. Be sure to preserve the receipt from the Post Office.
If you do not receive any communication after one month, send a reminder via email as well as by Speed Post. If there is still no response, then seek advice from this forum. However, if you need to approach this forum, do not start a new thread but rather write a new post on this thread only.
Thanks,
Dinesh Divekar
From India, Bangalore
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Yes, you are eligible for the gratuity. I recommend that you fill out Form 1 of the Gratuity Act and submit it to the HR Department. Obtain a signature on the photocopy of the form. If HR refuses to sign, then send it via Speed Post with acknowledgment due. Be sure to preserve the receipt from the Post Office.
If you do not receive any communication after one month, send a reminder via email as well as by Speed Post. If there is still no response, then seek advice from this forum. However, if you need to approach this forum, do not start a new thread but rather write a new post on this thread only.
Thanks,
Dinesh Divekar
From India, Bangalore
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Hi Hope your company has more than 10 employees to fall into the category of must pay company. Further details to be followed as indicated by our learned friend Mr Dinesh. Thanks and Regards
From India, Hyderabad
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From India, Hyderabad
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If your company is covered under the Payment of Gratuity Act, there is no need for any separate agreement for gratuity entitlement. The law gives you the right to receive gratuity. Submit the necessary forms to the company by hand or speed post and obtain acknowledgment. It is advisable to read Section 4 of the Payment of Gratuity Act. Section 7 of the same Act is also worth reading. Once you read it, you will understand the time limit within which the employee is to be paid (30 days). You are entitled to simple interest in case of any delay in payment as well. Therefore, without delay, write and submit the forms to your company and maintain documentation of the claim with dates, receipts at the employer's office, etc.
From India, Pune
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From India, Pune
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Adding to what Mr. Nathrao's post, please go through the following:
Section: 4 Payment of gratuity.
(1) 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:
- on his superannuation,
- on his retirement or resignation, or
- on his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such minor shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation: For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned.
From India, Aizawl
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Section: 4 Payment of gratuity.
(1) 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:
- on his superannuation,
- on his retirement or resignation, or
- on his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such minor shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation: For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned.
From India, Aizawl
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I have sent a gratuity application letter to my company by speed post. I also met with the Labour Commissioner and informed him about my pending gratuity, bonus, and PL for the past 12 years. He contacted my director on mobile to inquire, and my director provided false statements, claiming that he had already paid the gratuity along with the salary. He then informed me that both he and all the records would need to come to the Labour office after receiving a letter from the Labour office. Additionally, he instructed me to prepare the amounts for all the pending PL, gratuity, and bonus for the past 12 years.
The next day, my director called me to come to the office on Sunday. My question is, should I meet with my director? How should I prepare the bonus for the last 12 years, as well as the PL for the same period? My company does not provide my salary broken down into basic, TA, DA, and HRA; it is given as a single amount. Please advise.
From India, Mumbai
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The next day, my director called me to come to the office on Sunday. My question is, should I meet with my director? How should I prepare the bonus for the last 12 years, as well as the PL for the same period? My company does not provide my salary broken down into basic, TA, DA, and HRA; it is given as a single amount. Please advise.
From India, Mumbai
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