I was working in a corporation Ltd company for 18 years. Due to the sick/over liability of the company, the management has decided to sell the company. Accordingly, the company has been sold, and all employees were transferred to the new company with service continuity. The new company ran the unit for 4 years, and they tried to sell the company to another party. Gradually, they stopped the business. Meanwhile, many employees were laid off from the company. Eventually, only 4 to 5 persons were working, and we also resigned and left the company. Currently, the company is completely closed. Only security personnel are taking care of the company.
During our period of service, the employer did not pay the salary or provide service to the remaining employees. In the worst case, all remaining employees left the company. Personally, I have 6 months' salary due and have not received the gratuity. We have filed a case against the employer in the labor court, and the case is ongoing. In this case, only the previous employer's advocate has attended the court, while the purchasing employer has not appeared or replied to the court. We are in a difficult situation. I am around 53 years old and unable to find a job in a reputed company.
Please advise me/us on further possibilities to receive our overdue wages and benefits.
From India, Mumbai
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During our period of service, the employer did not pay the salary or provide service to the remaining employees. In the worst case, all remaining employees left the company. Personally, I have 6 months' salary due and have not received the gratuity. We have filed a case against the employer in the labor court, and the case is ongoing. In this case, only the previous employer's advocate has attended the court, while the purchasing employer has not appeared or replied to the court. We are in a difficult situation. I am around 53 years old and unable to find a job in a reputed company.
Please advise me/us on further possibilities to receive our overdue wages and benefits.
From India, Mumbai
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There is no mention in the post about the nature of the case pending before the Labor Court - a dispute referred under section 10 of the Industrial Disputes Act, 1947 or a joint-claim filed under section 33C(2) of the Act for the recovery of moneys due to the workmen is also not known. Anyway, the fact is that the Company switched hands along with its employees with continuity of their services and reached the stage of closure eventually while all the workmen left the Company on their own gradually before its closure due to the continued non-payment of wages for months together.
Therefore, if at all, there can be only two types of claims - one is gratuity and the other is unpaid salary till the respective dates of resignation of the workmen concerned. Of course, the Labor Court is empowered to entertain and dispose of the claims of unpaid wages under section 33C(2) but cannot decide the claim relating to gratuity. For gratuity, you have to file claims before the Controlling Authority under the Payment of Gratuity Act, 1972 only. Anyway, you have to await the outcome of these legal proceedings of recovery only and no other go. Better, urge your counsels to file expedite petitions before the forum concerned.
From India, Salem
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6185Therefore, if at all, there can be only two types of claims - one is gratuity and the other is unpaid salary till the respective dates of resignation of the workmen concerned. Of course, the Labor Court is empowered to entertain and dispose of the claims of unpaid wages under section 33C(2) but cannot decide the claim relating to gratuity. For gratuity, you have to file claims before the Controlling Authority under the Payment of Gratuity Act, 1972 only. Anyway, you have to await the outcome of these legal proceedings of recovery only and no other go. Better, urge your counsels to file expedite petitions before the forum concerned.
From India, Salem
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Dear Sir,
If the employee worked at a company for 5 years and resigned, then he will be eligible for gratuity. Now, I have a doubt: if the employee rejoins the same company and completes another 6 years, will he be eligible for gratuity or not?
Sailaja
From India, Hyderabad
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If the employee worked at a company for 5 years and resigned, then he will be eligible for gratuity. Now, I have a doubt: if the employee rejoins the same company and completes another 6 years, will he be eligible for gratuity or not?
Sailaja
From India, Hyderabad
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Dear Sailaja,
Service for gratuity implies the unbroken continuity of the contract of employment between the same employer and the employee concerned. One of the formal terminations of the contract of employment is the effective resignation by the employee. When the resignation of the employee is accepted by the employer and pursuant to this, he is relieved, the particular contract of employment comes to an end, and the employer-employee relationship gets snapped. So the disbursement of all terminal benefits including gratuity becomes effective.
Now, after receiving all his terminal benefits for the period of service rendered up to resignation, if the employee joins the services of the same organization/employer for whatever reasons, it is a fresh contract of employment, and the employee distinctly enters into a fresh innings of service too. His eligibility for gratuity, therefore, depends on the qualifying factors in that subsequent service only.
From India, Salem
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Service for gratuity implies the unbroken continuity of the contract of employment between the same employer and the employee concerned. One of the formal terminations of the contract of employment is the effective resignation by the employee. When the resignation of the employee is accepted by the employer and pursuant to this, he is relieved, the particular contract of employment comes to an end, and the employer-employee relationship gets snapped. So the disbursement of all terminal benefits including gratuity becomes effective.
Now, after receiving all his terminal benefits for the period of service rendered up to resignation, if the employee joins the services of the same organization/employer for whatever reasons, it is a fresh contract of employment, and the employee distinctly enters into a fresh innings of service too. His eligibility for gratuity, therefore, depends on the qualifying factors in that subsequent service only.
From India, Salem
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