I have been working with a company for almost 13 years now. About 5 years back the company was taken over by other company.
Now i have been asked to leave and now i come to know that the old management had tied up with LIC and the gratuity amount ceiling is 3.5 lakhs where as my entitlement is 6.3 lakhs
the EHRMS sheet also shows 6.3 lakhs as gratuity accrued
However the present management now says that old management has done the tie up and i dont fall into their system of gratuity
Is there a way out, can i challenge them in a court of law on not informing me and i have saved the screen shot of the EHRMS report showing gratuity accumulation as 6.3 lakhs
Pls guide
From India, Bangalore
Now i have been asked to leave and now i come to know that the old management had tied up with LIC and the gratuity amount ceiling is 3.5 lakhs where as my entitlement is 6.3 lakhs
the EHRMS sheet also shows 6.3 lakhs as gratuity accrued
However the present management now says that old management has done the tie up and i dont fall into their system of gratuity
Is there a way out, can i challenge them in a court of law on not informing me and i have saved the screen shot of the EHRMS report showing gratuity accumulation as 6.3 lakhs
Pls guide
From India, Bangalore
Dear Anil,
The details are given u/s 4 of Payment of Gratuity Act, 1972 as follows:
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
Further in the case between Pattathurila K. Damodaran v. M. Kassim Kanju, it was held that by change of ownership, the relationship of the employer and employees subsists and the new employer cannot escape from the liability of payment of gratuity to the employees.
Hence, you will have to prove that you are entitled to better terms of gratuity as per Section 4(5) and the contract for better terms of gratuity was not changed/changed but no initimation was given to you during the change of employer.
Regards,
SC
From India, Thane
45The details are given u/s 4 of Payment of Gratuity Act, 1972 as follows:
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
Further in the case between Pattathurila K. Damodaran v. M. Kassim Kanju, it was held that by change of ownership, the relationship of the employer and employees subsists and the new employer cannot escape from the liability of payment of gratuity to the employees.
Hence, you will have to prove that you are entitled to better terms of gratuity as per Section 4(5) and the contract for better terms of gratuity was not changed/changed but no initimation was given to you during the change of employer.
Regards,
SC
From India, Thane
thanks for the comment
the actual problem is that the old employer has tied up with LIC wherein the upper limit has been fixed at 3.5 lakhs
But they didnot intimate anybody about this change
In the current organisation they dont have any such tie up but they are saying that since we are from other division which was bought over by them the regular rules/ benefits of their company dont apply to us
however my ehrms page shows a gratuity of 6.3 lakhs accumulated till date, so can i challenge them stating that why were u misleading me till now
From India, Bangalore
the actual problem is that the old employer has tied up with LIC wherein the upper limit has been fixed at 3.5 lakhs
But they didnot intimate anybody about this change
In the current organisation they dont have any such tie up but they are saying that since we are from other division which was bought over by them the regular rules/ benefits of their company dont apply to us
however my ehrms page shows a gratuity of 6.3 lakhs accumulated till date, so can i challenge them stating that why were u misleading me till now
From India, Bangalore
EHRMS sheet is the online facilty where an employee can acccess all his deatils , like salary slip, income tax deductions, leaves availed and balance, gratuity accumulated etc
this site is maintained by the company for all the employees and each emp[loyee is given a user id and password
From India, Bangalore
this site is maintained by the company for all the employees and each emp[loyee is given a user id and password
From India, Bangalore
Dear Anil,
The valid documents in this regards is/are Letter of Appointment/Terms and Conditions of Employment/ Employment Policies/ Contract of Employment/ Letter of Promotion or Increment/ Change in the Terms and Conditions of Employment. The EHRMS is a employee portal which has no validity in the eye of law, unless explicitly stated in any communication given to you.
Regards,
Swastik
From India, Thane
The valid documents in this regards is/are Letter of Appointment/Terms and Conditions of Employment/ Employment Policies/ Contract of Employment/ Letter of Promotion or Increment/ Change in the Terms and Conditions of Employment. The EHRMS is a employee portal which has no validity in the eye of law, unless explicitly stated in any communication given to you.
Regards,
Swastik
From India, Thane
Dear All,
Gratuity Act says that the minimum benefit under the Act is Rs. 3.5 lac but that does not restrict the employer to provider better benefits than the one mentioned.
I am aware of many such organizations which have made it a policy to keep the gratuity benefit uncapped (as a long term retention tool). In such case the employer can avail tax benefits upto Rs. 3.5 lac only and the additional money received by the employee is taxed in the hands of the employee at normal rates.
To Anil,
If your new company's gratuity policy says that the benefits are uncapped (does not have a 3.5 lac limit), then you are entitled for your 6.3lac.
Even if yuor new employer had any understanding with old employeer on transfer of liability ownership, it can not affect your status.
Before proceeding for an action, confirm the gratuity policy at the new employer. If it is uncapped, you can get 6.3. If it says capped at 3.5 lac, then even if the EHRMS shows 6.3, you are eligible for 3.5 only.
Gaurav
From India, Hyderabad
Gratuity Act says that the minimum benefit under the Act is Rs. 3.5 lac but that does not restrict the employer to provider better benefits than the one mentioned.
I am aware of many such organizations which have made it a policy to keep the gratuity benefit uncapped (as a long term retention tool). In such case the employer can avail tax benefits upto Rs. 3.5 lac only and the additional money received by the employee is taxed in the hands of the employee at normal rates.
To Anil,
If your new company's gratuity policy says that the benefits are uncapped (does not have a 3.5 lac limit), then you are entitled for your 6.3lac.
Even if yuor new employer had any understanding with old employeer on transfer of liability ownership, it can not affect your status.
Before proceeding for an action, confirm the gratuity policy at the new employer. If it is uncapped, you can get 6.3. If it says capped at 3.5 lac, then even if the EHRMS shows 6.3, you are eligible for 3.5 only.
Gaurav
From India, Hyderabad
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