I worked with a partnership firm for 6 years, which employs about 60 people. I recently resigned from the company after 6 years. When I approached them for Gratuity, they said the company doesn't fall under the gratuity act. Can anyone clarify on this.
From India
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Dear member, It seems that they are avoiding you to pay gratuity. You should approach the nearest labour office for this matter. Regards, R N KHOLA
From India, Delhi
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    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply is incorrect. A partnership firm employing 60+ people falls under the Payment of Gratuity Act, and the employee is entitled to gratuity. Seek legal advice for resolution.
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  • Dear Nick,

    Yes, I agree with Mr. Khola because, as per the act, every shop or establishment with 10 or more persons employed is covered under the Gratuity Act. I hope you are eligible for the gratuity. Please approach the labor office immediately.

    Suneel Pepakayala, HR Executive.

    From India, Hyderabad
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    (Fact Check Failed/Partial)-The user reply contains some inaccuracies. The Payment of Gratuity Act, 1972 applies to establishments with 10 or more employees, not shops. Partnerships firms are also covered under the Act irrespective of the number of employees. Please refer to the Payment of Gratuity Act for clarification.
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  • Dear Nick,

    You should write a letter to the Company (mentioning your designation, duration, and general duties) that you have worked with them for more than 5 years and politely request them to pay you the Gratuity amount. Most probably they will not reply. Wait for about 2 weeks and send them one more letter politely reminding them about your gratuity payment; do mention or make reference to your 1st request as well.

    Both letters should be sent by registered post acknowledgment due (registered AD). When the letter is delivered, the postman will take an acknowledgment from your Company that they received your letter, and this acknowledgment will be delivered back to you by the post office. Keep both the acknowledgments and photocopies of the letters with you; you will require these later on.

    Scenario 1) - If the Company does not respond to you, then take your appointment letter, pay-slips, copies of the letters, and AD receipt and go to the labor officer and register a complaint.

    Scenario 2) - If the Company responds to you in writing that they are not covered under Gratuity Act and refuse to pay Gratuity, then take the Company's reply, your appointment letter, pay-slips, copies of the letters, and AD receipt and go to the labor officer and register a complaint.

    As per law, if you are eligible for Gratuity, the Company has to pay Gratuity to you automatically, i.e., you do not need to make any request or application for it, but to make your case stronger, you should show that you made polite requests but still, that Company is not paying you Gratuity in violation of the Gratuity Act.

    Non-payment of Gratuity is a serious offense; the labor officer will take strict action, but you need to be a little patient and calm as these matters take time.

    In my experience, some Companies do take advantage of naive/unsuspecting employees, but once they get a notice from the labor office, they immediately clean up their act and settle all claims/dues as per law.

    Hope this helps.

    Best Regards,

    Ritesh Shah

    From India, Pune
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    (Fact Check Failed/Partial)-The user reply contains some inaccuracies. According to the Payment of Gratuity Act, 1972, all establishments with 10 or more employees are required to provide gratuity. The user should directly approach the labor officer without having to wait for company response.
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  • The authority under the Payment of Gratuity Act is the Assistant Commissioner of Labour. You shall prepare a petition providing the details of your date of joining and date of relieving, and the proposed Gratuity Amount claim. The authority will issue a notice to the respondent and deal with the matter accordingly.

    Regards,
    Sasikumar.R

    From India, Coimbatore
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    (Fact Check Failed/Partial)-The information provided is partially correct. The authority for gratuity claims is the Controlling Authority under the Payment of Gratuity Act, not the Assistant Commissioner of Labour. The process described for preparing a petition and claiming gratuity is accurate.
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  • Dear Nick,

    What was your position and nature of work in the company? If you have worked for more than 5 years, you are entitled to gratuity. You should approach the concerned Labour office.

    Thanks & Regards,

    Sanjeev Baliyan Sr. Consultant (Labour Laws) Clairvoyant Management Solutions Noida 9971589511 www.clairvoyants.co.in

    From India, Pune
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    (Fact Checked)-The information provided in the user reply is correct. It is advisable to approach the concerned Labour office for further assistance regarding gratuity entitlement. (1 Acknowledge point)
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  • Dear Nick_07,

    Without going into much complexity, I would suggest the following:

    1. Any establishment/company/shop registered under the Companies Act or Shops & Estb. Act has to pay gratuity as per the provisions of the PG Act, without a doubt.
    2. If your HR department has denied this, provide them with a claim in Form-I (Application for Gratuity by an Employee) and obtain a receipt. Wait for 30 days. The employer is liable to pay gratuity within 30 days of separation. If they fail to do so, they are liable to pay interest on the amount due after the 30-day period.
    3. If you have not received your gratuity within 30 days, lodge a complaint with the ALC of your region, who is the Payment Authority under the Act. They will address the matter appropriately.

    Best wishes,

    AK Jain
    HR Personnel
    NCL, CIL

    From India, New+Delhi
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    (Fact Checked)-The user reply contains accurate information regarding Gratuity entitlement and the process to claim it. No corrections needed. (1 Acknowledge point)
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  • Dear Nick_07,

    It is as simple as that which has been suggested by others. If you still have difficulty, use these forms and submit them to your employer: one personally, one by ordinary post, one by speed post or RPAD, and one copy to the designated authorized officer for your office. Make sure you have a copy of this claim form duly acknowledged by your employer. Wait for some time, send a reminder quoting your original claim form, giving them a 15-day period. If nothing happens immediately, file a petition to the Authorized Officer (you can also meet them personally). In your reminder, mention that your employer is liable to pay overdue interest as per the law until the date they make the gratuity payment. You can make use of the attached forms as deemed necessary.

    All the best.

    From India, Bangalore
    Attached Files (Download Requires Membership)
    File Type: pdf gratuity form I claim.pdf (21.7 KB, 668 views)
    File Type: docx Gratuity-Form L,M,N....docx (21.2 KB, 568 views)

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    (Fact Check Failed/Partial)-The user's reply contains inaccuracies regarding the process of claiming gratuity. The process described is not in line with the legal requirements. An amendment is needed to provide the correct procedure.
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  • Friend,

    We all understand that your ex-employer is making attempts to avoid paying your gratuity. Communicate once again and demand what is due. If the stalemate persists, take up the issue with the concerned ALC and follow up regularly to get what you are owed.

    Best wishes,
    Sourav Mukherjee

    From India, Bangalore
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    CiteHR.AI
    (Fact Check Failed/Partial)-The information provided is partially correct. The Payment of Gratuity Act, 1972, applies to establishments with 10 or more employees. Your ex-employer should provide gratuity. Contact the labor department if needed.
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  • Before approaching the Labour Department or authority under the Payment of Gratuity Act to file your case/claim for the payment of gratuity, please ensure that you have sufficient evidence regarding:

    1. Your date of joining and date of exit.
    2. You have continuously served there for 5 years and above.
    3. In each year of service, you have worked at least 240 days.

    I believe you will be awarded payment of gratuity with interest and penalty by the authorities.

    Thanks,

    Yash Paul Ahuja
    Consultant
    Yash Ahuja & Associates
    Malerkotla, Punjab

    [ESI & EPF Consultant in Punjab| Labour Laws Consultant in Punjab](http://www.esiepfadvisor.com)

    From India, Sangrur
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    (Fact Checked)-[The user's reply contains accurate information regarding the eligibility criteria for gratuity under the Payment of Gratuity Act, 1972. The user correctly advised the individual to ensure they meet the necessary conditions before approaching authorities.] (1 Acknowledge point)
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