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kpb (engineer)     16 October 2012

Is notice period considred for gratuity

Hi,

I had joined my company on 25 Nov 2007. I will be completing 5 years on 25 Nov 2012. I have put in my resignation on 11th Oct 2012 and have to serve a notice period of 2 months. My last day will be 11 Dec 2012.

I am confused with 4 years 8 months or 5 years for grauitiy eligibilty and also is the notice period part of my continuous service.


Please let me know if I am eligible for a gratutiy.

regards,

kpb



Learning

 4 Replies

Kumar Doab (FIN)     17 October 2012

Notice period served by you shall be counted in period of service.

Your last day in office shall be date of reference.

If gratuity in your company is managed by trust you may obtain rules of gratuity.

If not you may refer to:

 

 

Section Payment of Gratuity Act, 1972

: 2A
Continuous service.

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

The courts have validated the provisions of the act.240 days served in a year as per Sec 2A {1} amounts to full 1 year.

 

 

Section: 7
Determination of the amount of gratuity.

(1) A person who is eligible for payment of gratuity under this Act or any person authorized, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.

 

If you have served notice of resignation you have notified the employer of your date of retirement. You may mention in notice of resignation to compute your gratuity in FNF statement and pay it vide FNF settlement. You may submit FormI under proper acknowledgment to your appointing authority a month before your effective date of resignation. You may also mention in notice of resignation that all communications to you should be supplied by redg. post only and postage prepaid {as purchased from PO} self addressed envelope{s} are being submitted and are enclosed.

 

The employer is duty bound to serve notice to employee as per Sec7.

 

THE PAYMENT OF GRATUITY (CENTRAL)

RULES, 19721

 

     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.

 

You may find the following threads initiated by employees useful.

 

https://www.lawyersclubindia.com/forum/Gratuity-67131.asp

 

Discussion > Labour & Service Law > Gratuity > Gratuity

 

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp

 

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

 

https://www.lawyersclubindia.com/forum/Gratuity-eligibility-59745.asp#.UG20vmcWrts

 

Discussion > Business Law > Gratuity eligibility

 

 

https://www.lawyersclubindia.com/forum/Gratuity-unpaid-67376.asp

 

Discussion > Labour & Service Law > Gratuity > Gratuity unpaid

 


Attached File : 814334025 gratuity%20-%20madras%20hc%20judg%5b1%5d..pdf downloaded: 245 times

Manindra Singh (Chief Manager IR)     17 October 2012

You will be eligible for gratuity under the Payment of Gratuity Act. Please make an application in form - I, on the last working day in the company and your company needs to settle your gratuity within 30 days.

In case there is any issue, concerned DLC is the authority under the Payment of Gratuity Act, and do not hisitate to approach him if you do not receive the payment in 30 days.

Kumar Doab (FIN)     17 October 2012

Mr. Maninder Singh has given valuable advice. Kindly follow it.

If you have served notice of resignation under acknowledgment the date of superannuation or retirement is known, to the employer therefore you may apply to the employer before thirty days of the date of superannuation or retirement, and submit FormI under acknowledgment to o/o your appointing authority. You can also submit copy under acknowledgment to Controlling Authority of Gratuity which may be DLC at your location.

 

kpb (engineer)     17 October 2012

Thank you all for making it clear. Will follow your advice.

 

thank you


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