Gratuity
Manish Kumar Choudhary
(Querist) 07 December 2015
This query is : Resolved
I have served 9 yrs 332 days with my last organisation (21st Dec 2004 till 17th Nov 2015).
However i have been paid Gratuity as applicable to employees who have served for 5yrs in the organisation.
Does not fulfilling the criterion of 2 years by just 33 days make me ineligible for receiving Gratuity as applicable for employees having served full 2 yrs ?
Is there a recourse for such cases...
Manish
Kumar Doab
(Expert) 07 December 2015
Did the employer supply 'Notice of Determination of Gratuity' to you?
You should get Gratuity =10Years.
What was the total amount amount paid to you?
Manish Kumar Choudhary
(Querist) 07 December 2015
Its available on the Gratuity site as follows:-
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Payment of Gratuity:
The policy regarding payment of gratuity for employees is as under:
1) An employee must have completed a minimum of 4 years and 240 days of continued service.
2) For the purpose of calculation, the period of service is rounded off to the nearest year. Example –
Service period of 5 years 6 months 1 day = 6 years for the purpose of calculating gratuity.
Service period of 5 years 6 months = 5 years for the purpose of calculating gratuity.
Formula – ((Basic+DA)*15/26 * no. of years of completed service.
3) On completion of 10 years of service the employee is paid gratuity of one month’s basic multiplied by the number of completed years of service.
4) To be eligible for a full month’s basic for the years of service; an employee should have necessarily completed full 10 years of service. Rounding off is not considered for the payment at full month’s basic Example –
Service period of 9 years 6 months 1 day = 10 years for the purpose of calculating gratuity. Formula – ((Basic+DA)*15/26*10)
Service period of 10 years 0 months 0 days = 10 years for the purpose of calculating gratuity. Formula – ((Basic+DA)*10)
5) The payment of gratuity is capped at a maximum of 20 times of Basic + DA (wherever applicable).
6) Gratuity is payable within 30 days of last working date.
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How is it that a 33 days short of completing 10 yrs of service, makes me ineligible for the full gratuity amount leaving?
Is there a recourse available.
Kumar Doab
(Expert) 08 December 2015
At point 4) it is mentioned that:
"Service period of 9 years 6 months 1 day = 10 years for the purpose of calculating gratuity. Formula – ((Basic+DA)*15/26*10)"
So you have already have the answer of your query.
Did you inquire from your office? What is their reply?
What is your establishment: Govt/Private?
Which gratuity rules apply to it:Payment of Gratuity Act, 1972 or some other?
These gratuity rules are posted at which site?
Rajendra K Goyal
(Expert) 08 December 2015
If you have not been paid as per norms of the company / policy send notice to the company.
Advocate/CS Sanjeev Kataria
(Expert) 08 December 2015
you are entitled for 10 years gratuity. you can file the complaint for short payment before the designated authority appointed by the state. it is advisable to serve the legal notice before filing complaint
Surrender K Singal
(Expert) 09 December 2015
Author has himself answered his querry by "To be eligible for a full month’s basic for the years of service; an employee should have necessarily completed full 10 years of service. Rounding off is not considered for the payment at full month’s basic" THen why should be try to entangle him with legal notice etc. to deprive him of his peace ? Jai Shree Ram !
K.S.Srinivas
(Expert) 12 December 2015
You have already answered your query.
