Delay in gratuity settlement

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Thank you for your advise Sir.

However the HR is saying that 45 days from my last working day (03 May 2012) and then 3 months after that will I get my Gratuity. That is more than 4 months. I have not received any acknowledgement from the company either regarding acceptance of my Gratuity application. What should I do? Should I approach the concerned authorities and complain about this or I need to wait for some more time. I also would like to know if a Company can hold on to the Gratuity amount of an employee for more that 30 days and can pay it at their own wish and policies.

Employer should pay in a month. Try by writing to your appointing authority, MD, Company secretary, that you have submitted the form I to Mr/Ms.............dept...........designation............address on dated..........and you understand that payment of gratuity is to be made in a month's time whereas these gentlemen are communicating that it shall be released after 4 months( explain how), and request these good offices to supply you the payment by bank DD thru redg/speed post only so as to reach you within dated.............You may mention that you are submitting the copies to controlling authority by dated...........If the employer delays the payment it shall have to pay interest.If the good offices also maintain studied silence and do not provide releif you may approach o/o Controlling Authority which may be DLC in your case.

Rules of Payment of Gratuity:

7. Application for gratuity.-(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer:

    Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

8. Notice for payment of gratuity.-(1) Within fifteen days of the receipt of an application under rule 7 for payment of gratuity, the employer shall-

if the claim is found admissible on verification, issue a notice in Form 'L’ to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof,

Manager, Human Resources of the Company has either misdirected, or misconstrued the relevant provisions made in this behalf. The employer shall make the payment of Gratuity as stipulated within 30 days. There is no question of any delay. If, the payment of gratuity is not made, it is advisable that a legitimate claim be filed before the specified statutory authority under the Act for "deterining the gratuity" and for the payment of money due with interest. The appropriate authority will pass the order accordingly. It has powers to award interest on delayed payment and even the penalty.

There are members in HR fraternity who guide the employer properly and prompt or peruse to follow norms and there are gentlemen who would blindly implement the instructions of master. FNF settlement should ideally be completed by employer within notice period and dues and documents be handed over to employee on last day in office or within 2 days. In case of termination employers promptly attach notice pay instrument with termination order, then why can't employer complete its own act of FNF settlement and pay on last day in office along with gratuity as date of retirement is known to employer. This task is to be performed by HR on behalf of employer, even if their operation is manual or computerized. Nowadays this operation is computerized, and excellent software is used.

What was your job responsibility? Did it involve very sensitive operation or expensive and huge inventories at various locations etc? How does the company justify the time period of 45 days and 3 months thereafter? You can raise specific queries.

Those who tend to stand on toes of employee are not  fit to be left to loose around in a civilized society.

There are provisions to check this in the Payment of Gratuity Act.

Section: 9
Penalties.

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.

Section: 8
Recovery of gratuity.

If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify,] from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :

Employer should pay gratuity in a month from date of retirement or deposit with Controlling Authority.

You may remind the Appointing Authority, MD, Company Secretary, with a copy to Head-HR, in gentle or terse language as deemed fit at your end.

Attached Payment of Gratuity Act.