Non-payment of gratuity

Jitendra Jain (Querist) 27 February 2014 This query is : Resolved
Dear All,

I am in need of your guidance in the following matter:-

- My client has served more than 8 years continuously in a Public Limited Company covered under Payment of Gratuity Act.

- He had resigned from the services of the company before six months back (September 2013) but he was not relieved by the company and informed him after one week of his resignation that some decisions which were taken by him during his last two years of tenure are being enquired.

- My client after waiting a period of two months started correspondence with the company to pay his entire dues including amount of gratuity but they did not respond.

- Due to this he lodged his claim with controlling authority under payment of gratuity act on 2nd Dec 2013.

- After lodging claim with the authority by my client, they informed him on 7.12.13 that services of my client terminated due to misconduct / lack of confidence in my client and lodged a vague FIR on 10th Dec'13 just to give strength to their decision of termination.

- They have done this all just to grab the amount of gratuity as gratuity is not payable in case of termination.

My query is can employer terminate the services of employee after tendering his resignation that too after 4 months of his resignation while during his long tenure with the company he was never given any letter / charge sheet about lack of confidence / misconduct.

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Sankaranarayanan (Expert) 27 February 2014
approach the labour court and submit the details and fight the case and win .All subject to the genuinity of case

Raj Kumar Makkad (Expert) 27 February 2014
Such termination is nothing but an eye-wash and thus the same should be strongly challenged before Controlling authority as well as before labour court.

Devajyoti Barman (Expert) 28 February 2014
You can go for Writ petition straightway for speedy result.

Isaac Gabriel (Expert) 28 February 2014
Gratuity should be paid within 30 days of cessation of employment.The controlling Authority may be appraised of this and order for the edisbursement could be
issued.Retrospective termination is against law.

T. Kalaiselvan, Advocate (Expert) 01 March 2014
The company's act is illegal and not tenable in law, Appropriate legal actin may be intiated as advised by experts.

Jitendra Jain (Querist) 04 March 2014
I Thanks to All experts for their advise and it will certainly boost my confidance.

Guest (Expert) 04 March 2014
Mr. Jain,

If your client could not receive any kind of negative response before the expiry of notice period that can be a plus point in his case to fight his cause. In that case, the resignation can be deemed to have been accepted.

Jitendra Jain (Querist) 02 April 2014
Dear Sir,

My client had resigned with immediate effect and he had received a mail after four days of his resignation having the following negative words:-

"Please note that there are circumstances where the company / group is looking into certain decisions / actions taken during the course of your employment, particularly in the immediate last two years. It is expected that you will co-operate with and assist the company in carrying out these proceedings".

On receipt of this e-mail, my client had assured company to co-operate in any proceedings undertaken by company.

But in actual company never sought any information / co-operation from my client and just terminated his services after 3 months of this letter giving reason "LOSS OF CONFIDENCE".

Devajyoti Barman (Expert) 02 April 2014
Anyway all is well which ends well.\Forget the past incidents now.

Non-payment of gratuity

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