GRATUITY ISSUE – CLARIFICATIONS REQUIRED:
Our Company XXX have his Head office Mumbai started in the 1960s. It started making molasses based chemicals at Maharastra and it was closed in the 1990s. XXX started another company for different products at Madras in 1972. In the 1990s it added some other products same complex. In 2002, the name of the Company was changed as YYY. So 2002 onwards XXX have their Corporate Office at Mumbai and the manufacturing facility at Chennai. This manufacturing has been closed by Dec-12 and it obtained the permission from TN Labour Ministry to close the company and agreed to settle the employees by paying compensation after selling the land We, 84 officers, are approaching Control of Authority, Labour Commissioner office., Chennai.
1)We are not clear whether we should approach the Control Authority of State or Central Government since Head Office is at Mumbai and Factory was at Chennai. The company has got no other business unit.
2)Also, we, the officers ( Management Category), were eligible for 30 days of Gratuity per year of Service as per appointment, promotion letters and even by the letter given by the Chairman after closing the Company. Can the Gratuity Control Authority get us 30 days Gratuity or only 15 days Gratuity as per Act?
Can anyone clarify the above two points?
From India, Madras
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Our Company XXX have his Head office Mumbai started in the 1960s. It started making molasses based chemicals at Maharastra and it was closed in the 1990s. XXX started another company for different products at Madras in 1972. In the 1990s it added some other products same complex. In 2002, the name of the Company was changed as YYY. So 2002 onwards XXX have their Corporate Office at Mumbai and the manufacturing facility at Chennai. This manufacturing has been closed by Dec-12 and it obtained the permission from TN Labour Ministry to close the company and agreed to settle the employees by paying compensation after selling the land We, 84 officers, are approaching Control of Authority, Labour Commissioner office., Chennai.
1)We are not clear whether we should approach the Control Authority of State or Central Government since Head Office is at Mumbai and Factory was at Chennai. The company has got no other business unit.
2)Also, we, the officers ( Management Category), were eligible for 30 days of Gratuity per year of Service as per appointment, promotion letters and even by the letter given by the Chairman after closing the Company. Can the Gratuity Control Authority get us 30 days Gratuity or only 15 days Gratuity as per Act?
Can anyone clarify the above two points?
From India, Madras
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Gratuity entitlement is 15 days per six months of service but management is at liberty to pay more. In this case, company has committed higher figure in writing. Q1 is not clear.
From India, Pune
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3251From India, Pune
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Payment of Gratuity Act is an establishment-based enactment; therefore, you have to apply for gratuity in the place where you have worked. If you are entitled to a higher amount of gratuity, it is payable as per the concerned agreement. However, if the PGA Authority awards only 15 days of completed year of service gratuity, you can enforce the agreement by approaching the appropriate government for payment of the remainder amount of gratuity.
From India, Pune
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From India, Pune
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In your case, the Appropriate Authority is the Central Govt. You can approach the Central Labour Commissioner because you have an office or factory outside one state.
If the terms of appointment say that managers are eligible for 30 days of gratuity, you will receive it. The appropriate authority cannot say that they cannot pass an order for the payment of 30 days' gratuity because the law states that there is no bar on any employee to receive a more beneficial amount.
From India, Kannur
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If the terms of appointment say that managers are eligible for 30 days of gratuity, you will receive it. The appropriate authority cannot say that they cannot pass an order for the payment of 30 days' gratuity because the law states that there is no bar on any employee to receive a more beneficial amount.
From India, Kannur
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I beg to differ from the view of my learned friend Mr. Madhu regarding the Controlling Authority for the purpose of disposing of the gratuity claims of the employees of the factory in Madras, which is now closed. Although the Company has its registered office in Mumbai, which may be considered an establishment under the State's S&E Act, when the need for gratuity claims arose, it had only one factory in Tamil Nadu, which is now closed. Additionally, its sole manufacturing unit in Madras was closed with the permission of the Government of Tamil Nadu, being the appropriate Government under the ID Act, 1947. The gratuity claim stems from the closure permitted by the Government of Tamil Nadu and the assurance provided by the management beforehand. Hence, I recommend that the employees of the closed Madras factory:
1) Should approach the Controlling Authority appointed by the Government of Tamil Nadu, which also serves as the appropriate Government under the P.G Act, 1972.
2) Section 4(5) of the P.G Act, 1972, upholds the employees' right to receive better gratuity terms under any award, agreement, or contract with the employer. Therefore, in case of any retreat by the Company currently, if the appointment letter includes improved terms, it can be considered a contract, and a higher gratuity amount can be claimed.
From India, Salem
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1) Should approach the Controlling Authority appointed by the Government of Tamil Nadu, which also serves as the appropriate Government under the P.G Act, 1972.
2) Section 4(5) of the P.G Act, 1972, upholds the employees' right to receive better gratuity terms under any award, agreement, or contract with the employer. Therefore, in case of any retreat by the Company currently, if the appointment letter includes improved terms, it can be considered a contract, and a higher gratuity amount can be claimed.
From India, Salem
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