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Vidya Rani (Manager)     13 August 2012

Clarification on gratuity rules

 

Dear Sir,

 

I am working as a manager in a company whose current strength was 9 but the company fired 2 people for no reason recently. Now they are in the process of recruting new people out of which Two persons have already joined and 1-2 more are expected to join in due course.

 

As per gratuity act, it is compulsory for all companies with minimum size of 10 employees. I personally am looking to quit the company to give more attention to my family. I have completed 6 years service in this company. I have to service a notice period of 60 days as per my contract.

 

Currently my company employee strength after new people joined has become 9 people. 1-2 more people are expected to join the company in the next 30-45 days. So if I submit my resignation now and during the course of my notice period (60 days), the company strength crosses 10 people, will I be eligible for gratuity. 

 

Please clarify as early as possible. Also would like to know the procedures to be followed if the company fails to honour the gratuity act.

 

Your earlier possible reply will be very much appreciated.

 

 

Best Regards,

Vidya



Learning

 4 Replies

Phanindra Kumar (Adovcate)     13 August 2012

Dear Vidya,

            can i know some of the details of the company you are working for, i.e., whether the company is incorporated according to Companies act. And according to Company act, Labour Act  if your company is incorporated and not maintaining the minimum norms you can sue the company  for your claim on gratuity

 

regards....

Phanindra Kumar Jayanthi

Vidya Rani (Manager)     13 August 2012

Dear Phanindra,

thanks for your prompt response. our company is a MNC and registered as a branch office of a foreign company in India. we have all other registrations in place like PAN, TAN, Shops & Estt etc. 

let me know if you need any other information.

Regards,

Vidya

Phanindra Kumar (Adovcate)     14 August 2012

Dear Vidya, As you said yours is an MNC and registered as a Branch of a foreign company in INDIA it needs to follow all the rules and pay you the gratuity. I need some other details from your side. If you can mail me on my mail id:( phani_kumarj@yahoo.in) i'll certainly assist you in regard to solve your problem. regards.. Phanindra Kumar Jayanthi

Phanindra Kumar (Adovcate)     14 August 2012

Dear Vidya,

              As you said yours is an MNC and registered as a Branch of a foreign company in INDIA it needs to follow all the rules and pay you the gratuity. I need some other details from your side. If you can mail me on my mail id:( phani_kumarj@yahoo.in) i'll certainly assist you in regard to solve your problem.

regards..

Phanindra Kumar Jayanthi


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