Gratuity eligibilty when company closes down
Anu Bedi
(Querist) 01 June 2017
This query is : Resolved
I am working with one of the German MNC. I joined this company On 23dec,2012 for contractual job of few months in place of a female employee who went on maternity leave.
On 4th may, 2013 the company decided to make me a permanent employee for another good position due to my good work.
Now due to some reasons company is closing down its operations on 17th october, 2017 and have given me a notice period of 3months i.e.(1.06.2017-31.08.2017)with 2months salary for september and october and that also i will get only if i will stay till 31st august 2017 otherwise nothing.
I just wanted to ask,am i elligible for the gratuity or any other benefits.
Please help
Kumar Doab
(Expert) 01 June 2017
The establishment/employer can pay Gratuity by its free will and offer better terms of Gratuity.
Has the establishment communicated anything on Payment of Gratuity also in writing?
Anu Bedi
(Querist) 02 June 2017
Thanks for your reply but there is nothing in writing.
Rajendra K Goyal
(Expert) 02 June 2017
Whether company observe 5 days or 6 days week?
It seems your service is not enough to entitle you for gratuity.
Guest
(Expert) 02 June 2017
On what account you are being paid "2months salary for september and october," when the company has already given you three months notice of termination covering the period up to 31.08.2017?
Kumar Doab
(Expert) 02 June 2017
Your DOJ as per our post is: 23dec,2012.
Did you resign, before you were taken into permanent employment (w.e.f 4th may, 2013).
Or can you establishment Continuous service since 23dec,2012?
You have posted that;
“ am working with one of the German MNC. I joined this company On 23dec,2012 for contractual job of few months in place of a female employee who went on maternity leave.
On 4th may, 2013 the company decided to make me a permanent employee for another good position due to my good work.
Now due to some reasons company is closing down its operations on 17th october, 2017 and have given me a notice period of 3months i.e.(1.06.2017-31.08.2017)with 2months salary for september and october and that also i will get only if i will stay till 31st august 2017 otherwise nothing.
I just wanted to ask,am i elligible for the gratuity or any other benefits.
Please help “
Kumar Doab
(Expert) 02 June 2017
If you did not resign/can you establishment Continuous service since 23dec,2012:
Then your DOJ might be 23dec,2012.
As per your post your LWD shall be: 31.08.2017.
Apparently: If DOJ is: 23dec, 2012 and LWD: 31.08.2017 then you might have worked for 4Y8M.
You can be eligible for payment of Gratuity per Sec; 2A of Payment of Gratuity Act 1972.
http://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf
Kumar Doab
(Expert) 02 June 2017
The establishment works for 6days/week or less than 6days/week?
The establishment/employer can pay any severance package, Ex. Gracia, even gratuity, any amount by its sweet will/discretion/decision.
What is stated in writing for nature of payment of 2 months’ salary for September and October: say Notice pay or whatever else?
What is the compensation stated in case of lay off (Redundancy) in service conditions/appointment letter?
Kumar Doab
(Expert) 02 June 2017
If you are covered by the def. Of Workman, then you may succeed to claim retrenchment compensation.
{15days salary/year*No. of years}
The establishment might have applied for closure and might have obtain clearance from Govt. You may check it locally.
Since establishment has tendered Notice of Termination it may not agree on Notice Pay.
However it should tender in FnF statement/settlement; Leave encashment/bonus/OT/incentives/reimbursements/performance bonus etc etc etc
Insist on issuing FnF statement showing all details under respective heads.
Submit FormI under proper acknowledgment and request to supply Notice of Determination of Gratuity.
.
Kumar Doab
(Expert) 02 June 2017
You have posted that:
"Thanks for your reply but there is nothing in writing."
It is not in your interest.
What is the reason stated in Termination Notice by company?
If it is stated that establishment is being closed down then it is OK.
Kumar Doab
(Expert) 02 June 2017
Obtain correct FnF statement, Form 16 of all years and last year as per correct FnF statement, salary slips of all months, PF a/c slips of all years, ESIC card, acknowledgment of handover of charge/assets, NOC/NDC, service certificate, relieving letter for future reference and use etc etc?
If you have firmed up next employment try to get BGV done before closure and get a copy.
Kumar Doab
(Expert) 03 June 2017
Hope you are satisfied.
