Hi Team,
I want to clear a doubt regarding the applicant of gratuity. One of our ex-employees who has completed 5 years at the time of resignation has forwarded her request for gratuity via email and informed us that due to some medical reasons, she will not be able to come in person to apply for the same. She will authorize someone to collect the same.
However, our company policy states that employees eligible for gratuity need to come in person to our office and complete the formalities for the payment of gratuity. Our policy doesn't permit any third person for this.
I would like to know if, as per law, a third party, if authorized, can complete the formalities of payment of gratuity on behalf of an employee unless in the case of death.
Seniors, kindly advise.
Regards, Anna
From India, Kochi
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I want to clear a doubt regarding the applicant of gratuity. One of our ex-employees who has completed 5 years at the time of resignation has forwarded her request for gratuity via email and informed us that due to some medical reasons, she will not be able to come in person to apply for the same. She will authorize someone to collect the same.
However, our company policy states that employees eligible for gratuity need to come in person to our office and complete the formalities for the payment of gratuity. Our policy doesn't permit any third person for this.
I would like to know if, as per law, a third party, if authorized, can complete the formalities of payment of gratuity on behalf of an employee unless in the case of death.
Seniors, kindly advise.
Regards, Anna
From India, Kochi
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No, only in the case of death of the employee, the nominee of the deceased can claim gratuity. In other cases, such practices are not allowed. The concerned employee is required to fulfill all formalities and make a written request for claiming the gratuity amount from your company.
Regards
From India, Gurugram
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118Regards
From India, Gurugram
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The Payment of Gratuity Act does not say that the beneficiary should come in person to complete the formalities. It's the organization's policy-dependent, but I think if the beneficiary has a very genuine and valid reason, then the organization should take care of that and can make the payment (handing over the a/c payee cheque) to any authorized person. Yes, authorization needs to be proper.
If an employee has not claimed the gratuity in Form I, it does not mean that the Employer is absolved from his responsibility to pay gratuity. The Employer is bound to make the payment within the specified time prescribed in the act. Even the signed and scanned copy of Form I sent through mail is enough to process the application.
Regards,
Kamal
From India, Pune
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If an employee has not claimed the gratuity in Form I, it does not mean that the Employer is absolved from his responsibility to pay gratuity. The Employer is bound to make the payment within the specified time prescribed in the act. Even the signed and scanned copy of Form I sent through mail is enough to process the application.
Regards,
Kamal
From India, Pune
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Yadav Sir,
Thank you for your immediate reply. I have one more doubt that I would like to clarify. If she decides to pursue a legal case stating that the company has not taken into consideration her medical condition, which prevents her from traveling to the office and completing the formalities, what would be the legal stance in this scenario?
Regards,
Anna
From India, Kochi
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Thank you for your immediate reply. I have one more doubt that I would like to clarify. If she decides to pursue a legal case stating that the company has not taken into consideration her medical condition, which prevents her from traveling to the office and completing the formalities, what would be the legal stance in this scenario?
Regards,
Anna
From India, Kochi
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Dear Mr. R B Yadav,
Do you think it is legal to delay or deny someone of gratuity benefits on the grounds that the employee is not coming in person to fulfill the formalities? Please do not give confusing and wrong advice. Your advice may create future legal issues for the employer.
I would suggest going through the Payment of Gratuity Act thoroughly and also reviewing several case decisions/laws of High Courts and the Supreme Court on related matters.
Gratuity benefits are a statutory and protected right of an employee and cannot be mixed up or manipulated with your organization's policies.
It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. Even when the employee is untraceable, it is the duty of the employer to trace them. If the employer fails to trace the employee, they should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act. Failing this, the employer has to pay interest at 12% from the date on which the gratuity became due, i.e., 30 days after the employee's leaving.
Regards,
Kamal P
From India, Pune
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Do you think it is legal to delay or deny someone of gratuity benefits on the grounds that the employee is not coming in person to fulfill the formalities? Please do not give confusing and wrong advice. Your advice may create future legal issues for the employer.
I would suggest going through the Payment of Gratuity Act thoroughly and also reviewing several case decisions/laws of High Courts and the Supreme Court on related matters.
Gratuity benefits are a statutory and protected right of an employee and cannot be mixed up or manipulated with your organization's policies.
It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. Even when the employee is untraceable, it is the duty of the employer to trace them. If the employer fails to trace the employee, they should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act. Failing this, the employer has to pay interest at 12% from the date on which the gratuity became due, i.e., 30 days after the employee's leaving.
Regards,
Kamal P
From India, Pune
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Anna George, please read Section 7 of the POG Act. The employer shall pay gratuity to the employee even if she has not applied for it. In your case, you can pay by cheque to the authorized person. However, to be safer, you should inform the Controlling Authority about the payment.
Varghese Mathew
From India, Thiruvananthapuram
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Varghese Mathew
From India, Thiruvananthapuram
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