Jayakeerthi
I work for a American company that runs a outsourced centre in Bangalore and is registered as a Pvt Ltd company. I'm completing my notice period and have worked here for about 8 years, and when I checked with the HR regarding the gratuity I was told that they do not follow that practice in the company. Can a company choose to pay gratuity or not, and if necessary what actions can an employee take to receive the gratuity amount?
From India, Bangalore
malikjs
167

dear
if company has 10 or more employee than this act is applicable to them.
there is no choice and they are bound to pay gratuity.you can file a case before controlling authority under
payment of gratuity act 1972

From India, Delhi
Yaasmin
49

Dear MAlick,
My husband worked for pvt ltd firm for last 11 years, and this year they told him search for a new job as they dont have business to retain employees, now they are giving excuse for gratuity saying that company is iin bad economic state.
But on the other side company never provided any pf, esi, or other benefits, paid cash salaries till 2008 and then by cheques and have sent my husband to no of locations while on job.
In this case should we expect gratuity and what should be the approximate amt.
He started with 3,000 and at the time of leaving job he was drawing 17.500.00
Presently we are located in mumbai, company head office is delhi.
Kindly help

From India, Mumbai
Madhu.T.K
4248

A company can not escape payment of gratuity to eligible employees by saying that it is running in losses. At the same time it is the obligation of the company to pay it within 30 days of leaving of the employee EVEN IF THE EMPLOYEE DOES NOT ASK FOR IT. In other words, if the employee is not traceable the company should DEPOSIT the amount with Government (Labour Department) failing which the company will be constrained to pay interest.

In the above circumstances there is nothing wrong in demanding gratuity by sending an application in form I (attached) and if no intimation is received from the company (the company is expected to intimate date of payment of gratuity in form L) within 30 days, file a complaint before the District Labour Officer. You will get it.

The amount of gratuity is equal to 15 days salary for every completed year of service. If there is a fraction of a year of more than six months it shall be taken as one year whereas a fraction of year of less than six months shall be ignored. Salary for this purpose will include basic salary and dearness allowance only and the gratuity is calculated on the LAST DRAWN SALARY.

Regards,

Madhu.T.K

From India, Kannur
Attached Files (Download Requires Membership)
File Type: doc Gratuity Form I.doc (28.0 KB, 1557 views)

phanikumar_d66
15

Dear Jaya keerthi,
A company employing 10 or more employees has to pay gratuity to it's employees on sepetation from company provided they complete a continuous service of 5 years ( one year service in case of death).
Since you have completed 5 years of service you can apply for the payment of gratuity in Form I to your employer under the Payment of Gratuity Act and it your company do not pay the gratuity you can knock the doors of the Labour department. The concerned Asst. Commissioner of Labour is the controlling Authority under the Act.
D. Phani Kumar
Sr. Manager- P&A
Zuari Cement Ltd.
An Ital Cementi Group.


Yaasmin
49

Dear Mr. Madhu,

Thanks for your reply and the form.

one more thing i want to share that is, my husband is working there since Aug 2000 without any offer or appointment letter, so can go ahead for claiming of gratuity.

Only we have one promotion letter of 2008 and some address proof's on companies letter head.

I am hereby describing below his part of experience with the company.

Organization : XYZ (I) PVT LTD
Duration : From August 2000 to Till Date
Designation & Job Responsibilities : As Follows

Manager Operations - From April 2007 to till date in Mumbai Branch Office.

Field Officer – From 2006 to 2007 in Banglore Branch Office
Field Officer – From2005 to 2006 in Kolkatta Branch Office
Field Officer – From 2004 to 2005 in Mumbai Branch Office

Sr. Plumber – From 2002 to 2004 in Mumbai Branch Office at Site – Proctor & Gamble, Andheri.
Plumber – From 2001 to 2002 in Delhi Head Office at Site – Polyplex, Noida.
Plumber – from 2000 to 2001 in Delhi Head Office at Site – Appolo Tyres, Gurgaon.

azwaiting for seniors reply.

From India, Mumbai
kprasoon
173

Dear Yaasmin,
Before giving you any suggesation we need to know the employment conditions of your husband. If your husband has worked on retainership basis then applicability of PF/ESI/Gratuity depends on the terms mentioned in the employment contract and its not obligatory on the part of the employer. If your husband has worked as a regular employee then applicability of PF/ESI/Gratuity is a must oterwise it depends n the terms mentioned in the employment contract.
regards,

From India, Pune
boss2966
1168

Dear Jayakeerthi As informed by Madhu Please proceed. You have to get the gratuity. With warm regards S. Bhaskar 9099024667
From India, Kumbakonam
Yaasmin
49

He has worked on regular basis, not on retainership.
It is a, we can say lala type company, the employees are paid in cash and with signature on any wage register or sometimes no wage register, no pay slip has been provided till date.

From India, Mumbai
Yaasmin
49

He havent had any pay slip or any other proof. The just paid cash to evry employee with no deductions at all, from 2008 they introduced paying by cheque then from 2009 transferring to bank account.
From India, Mumbai
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