Hi,
this is the latest deed of the previous comp. It has holded Gratuity and Full and Final settlement, today my friend called the company HR representative as the gratuity and full and final amount was not yet received. The response was .. that they are on hold as my friend did not respond to threatening emails...
Please guide on how to proceed.
THanks
From India, Gurgaon
this is the latest deed of the previous comp. It has holded Gratuity and Full and Final settlement, today my friend called the company HR representative as the gratuity and full and final amount was not yet received. The response was .. that they are on hold as my friend did not respond to threatening emails...
Please guide on how to proceed.
THanks
From India, Gurgaon
In case you have any contacts with labour department, then why don't you contact them. A visit by a department official will ensure your settlement is made. I am sure, there must be some statutory official in India to whom you could complain for non receipt of the gratuity amount, which is a statutory payment. Maybe, one of the seasoned HR professionals from India could comment on this to guide and help you out.
Regards
From Indonesia, Jakarta
8Regards
From Indonesia, Jakarta
Dear Anonymous,
Regarding your point no.1, the company can forfeit gratuity only under the following circumstances, under Payment of Gratuity Act, 1972:-
Forfeiture of Gratuity
Gratuity can be forfeited {Sec 4(6)} where an employee has been terminated:
(i) for any act, willful omission or negligence causing any damage or loss to or destruction of any property belonging to the employer, to the extent of such loss or damage.
(ii) for riotous or disorderly conduct or any act of violence on his part.
(iii) For any act which constitutes an offence involving moral turpitude, provided the offence has been committed by him in the course of his employment.
Hence, if your friend did not commit any of the above acts, the company cannot forfeit his gratuity.
Regarding your point no.2, all formalities regarding full and final settlement has to be done within 2 days from the date of relieving the employee, unless there is a formidable reason for withholding the full and final settlement.
There appears to be something happening between your friend and his former employer, that is not coming into light.
With regards,
Madhusudan.
From India, Vijayawada
Regarding your point no.1, the company can forfeit gratuity only under the following circumstances, under Payment of Gratuity Act, 1972:-
Forfeiture of Gratuity
Gratuity can be forfeited {Sec 4(6)} where an employee has been terminated:
(i) for any act, willful omission or negligence causing any damage or loss to or destruction of any property belonging to the employer, to the extent of such loss or damage.
(ii) for riotous or disorderly conduct or any act of violence on his part.
(iii) For any act which constitutes an offence involving moral turpitude, provided the offence has been committed by him in the course of his employment.
Hence, if your friend did not commit any of the above acts, the company cannot forfeit his gratuity.
Regarding your point no.2, all formalities regarding full and final settlement has to be done within 2 days from the date of relieving the employee, unless there is a formidable reason for withholding the full and final settlement.
There appears to be something happening between your friend and his former employer, that is not coming into light.
With regards,
Madhusudan.
From India, Vijayawada
Hi Madhusudhan Ji,
Thanks a lot for your response. I will reiterate the sequence of events..
1. Resigned - After lots of trials of stopping him to take back resignation, company accepted the resignation and relived properly - gave the reliving and service documents
2. After few days - Joined in the company that is his previous company now the client (this company dept where my frnd working was taken over by this present company that is holding gratuity)
3. After that, the company HR sent mail to my friend and his employer (separate mails) that joining his ex company is illegal - according to employee agreement. There is no copy of employee agreement and my friend do not remember any such agreements, this was also confirmed with their colleagues. My friend did not respond to mails as his present employer guided to ignore them as there no illegal things and they are also talking.
4. After 45 days, as no full settlements or gratuity is provided, contacted hr represntative.. and got to know they are holding the funds as there was no response frm my friend.
From India, Gurgaon
Thanks a lot for your response. I will reiterate the sequence of events..
1. Resigned - After lots of trials of stopping him to take back resignation, company accepted the resignation and relived properly - gave the reliving and service documents
2. After few days - Joined in the company that is his previous company now the client (this company dept where my frnd working was taken over by this present company that is holding gratuity)
3. After that, the company HR sent mail to my friend and his employer (separate mails) that joining his ex company is illegal - according to employee agreement. There is no copy of employee agreement and my friend do not remember any such agreements, this was also confirmed with their colleagues. My friend did not respond to mails as his present employer guided to ignore them as there no illegal things and they are also talking.
4. After 45 days, as no full settlements or gratuity is provided, contacted hr represntative.. and got to know they are holding the funds as there was no response frm my friend.
From India, Gurgaon
Dear Anonymous,
Here, one thing appears to me that if your friend had done anything contrary to any of the terms of contract of employment, then the company will not relieve him at all and issue him his relieving and service certificates. Gratuity is also a part of full and final settlement. Both are not separately settled. The company appears to fear that your friend knows too much about some vital information of the shady deals of the company, hence apprehends that he may divulge that, that may cause some loss to their business and reputation, hence this harassment.
Let him approach the local Labour authorities with all appropriate documents and a letter addressed to them narrating the whole story, with correct details, to deal the issue. Once the Labour Department interferes, things will change. If the things at Labour Department did not move as expected with lower rank, then, let him approach the higher authorities of Labour Dept. for intervention and justice.
With regards,
Madhusudan
From India, Vijayawada
Here, one thing appears to me that if your friend had done anything contrary to any of the terms of contract of employment, then the company will not relieve him at all and issue him his relieving and service certificates. Gratuity is also a part of full and final settlement. Both are not separately settled. The company appears to fear that your friend knows too much about some vital information of the shady deals of the company, hence apprehends that he may divulge that, that may cause some loss to their business and reputation, hence this harassment.
Let him approach the local Labour authorities with all appropriate documents and a letter addressed to them narrating the whole story, with correct details, to deal the issue. Once the Labour Department interferes, things will change. If the things at Labour Department did not move as expected with lower rank, then, let him approach the higher authorities of Labour Dept. for intervention and justice.
With regards,
Madhusudan
From India, Vijayawada
Thanks a lot Madhusudhan Ji,
It is very unclear why the company is behaving so mean! they are talking to their ego. Due to my friend leaving the company they might have lost some monetary gains, they tried lot to stop him, as they could not build confidence.. my friend chose to leave.
Now, my friend responded to mail request to release gratuity and full and final and there is no document singed that would restrain in taking up other jobs, and requested to share the document if any.
They said that they are responded that they gave document and would share a the documents only with legal notice. And they are now initiating (after mentioning that they blocked gratuity) process of gratuity. But Full and final only after things are cleared. They are trying to misrepresent the facts...
The main worry is not about money, but about the damage they might make to career.. we think we had tolerated much and would like to reach labour dept. Is it correct? If so can we go with legal department on harassment case ?
Please guide..
Thanks...
From India, Gurgaon
It is very unclear why the company is behaving so mean! they are talking to their ego. Due to my friend leaving the company they might have lost some monetary gains, they tried lot to stop him, as they could not build confidence.. my friend chose to leave.
Now, my friend responded to mail request to release gratuity and full and final and there is no document singed that would restrain in taking up other jobs, and requested to share the document if any.
They said that they are responded that they gave document and would share a the documents only with legal notice. And they are now initiating (after mentioning that they blocked gratuity) process of gratuity. But Full and final only after things are cleared. They are trying to misrepresent the facts...
The main worry is not about money, but about the damage they might make to career.. we think we had tolerated much and would like to reach labour dept. Is it correct? If so can we go with legal department on harassment case ?
Please guide..
Thanks...
From India, Gurgaon
Dear Heeru,
As suggested earlier, let your friend take legal advice and let him act based on the legal advice and alternative course of action is to lodge a complaint with Labour Dept., with all facts and figures and complete details. No company can stand to the chance of winning a case submitting fabricated details, if your friend is not guilty.
With regards,
Madhusudan
From India, Vijayawada
As suggested earlier, let your friend take legal advice and let him act based on the legal advice and alternative course of action is to lodge a complaint with Labour Dept., with all facts and figures and complete details. No company can stand to the chance of winning a case submitting fabricated details, if your friend is not guilty.
With regards,
Madhusudan
From India, Vijayawada
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