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Girija Hariharan (resigned)     21 September 2012

Non payment of gratuity

I resigned from my employment in March,12.  I was covered under the LIC group gratuity scheme and am eligible for gratuity.  My company has received the gratuity cheque from LIC on 26/3/12 but have still not paid it to me.  I am not getting a proper response to my follow ups for the gratuity cheque.  Can you please let me know whether there is an organisation which can help me in recovering my gratuity with interest for the past 6 months. Thanks. 



Learning

 4 Replies

Kumar Doab (FIN)     21 September 2012

Company should have paid you without any delay.

You may submit FormI to employer under acknowledgment with a copy to Controlling Authority, under acknowledgment at your location which may be ALC.

You may write to LIC and obtain in writing the status of disbursement to company or peruse RTI route.

If you submitted notice of resignation say of a month, you have notified your last day in office/effective date of resignation/date of retirement to employer and employer should have paid gratuity on last day in office or computed in FNF statement and paid vide FNF settlement, along with superannuation payment if your company had any superannuation scheme also. Employer can make the payment of superannuation on date of retirement as described in standing orders or before.

You could have stated in notice of resignation to disburse gratuity and superannuation on last day in office, and could have submitted Form I a month before last day in office.

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.

It is felt that you may submit a gentle communication addressed to good offices of your appointing authority, MD, Chairman, Company Secretary, with a cc/copy to Head HR, and narrate all representations made so far by phone, email, by letter, in person, mentioning date of each representation and name of company employee…….designation..dept…..address….., and request the good offices to disburse payment to you by redg. post only and you may mention that a postage prepaid { as purchased from PO}, self addressed envelope is enclosed herewith for supplying the payment to you.You may conclude that Mr/Ms…… designation..dept…..address…have been stating that gratuity payment shall be released soon without specifying any date and have never supplied the payment o you till date.

You may submit Form I under acknowledgment to good office of your appointing authority. You may submit copy to Controlling Authority under acknowledgment which may be ALC at your location, and enclose copy of your representation to good offices.

Payment of Gratuity Act, 1972

 

Section: 7
Determination of the amount of gratuity.

 

 (1) A person who is eligible for payment of gratuity under this Act or any person authorised, 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.

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.]

Has the company supplied you FNF statement, work experience/ service certificate, relieving letter? It is believed that company has not charged you on any count.

 


(Guest)

Dear Girija Je

Just type a RTI request latter anr fuenishe to said authority. You will get your gratuiy within 2-3 month.


(Guest)

DearGirija Je

You have to use RTI act for solving your Problem. May your this step will provide you full saticfaction.

Kumar Doab (FIN)     22 September 2012

Section: 7
Determination of the amount of 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.

Has your employer supplied any such notice to you?

You may in your gentle representation to good offices of your company mentioning that you have learnt that LIC has supplied the cheque of payment of gratuity to you on dated.........., and that you have not received any notice of payment from company as described in SEc 7{2} mentioned in the Act.

You may submit FormI to employer under acknowledgment. You may also submit  a copy to Controlling Authority, along with copy of your representation to good offices under acknowledgment.


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