Gratuity
Kota Gopal Krishna Nayak
(Querist) 07 October 2011
This query is : Resolved
Dear sir,
I was employed with a multinational company for a period of 4 years and 9 months from 09/08/2006 to 30/04/2011 continuous employment. I want to know whether I am eligible for the payment of gratuity from the company.
Regards
Gopal Nayak
Sankaranarayanan
(Expert) 07 October 2011
no u have no right of eligibility for gratuity. IF any one crossed 5 years and more they are eligible.
Sailesh Kumar Shah
(Expert) 07 October 2011
You are eligible.
As per Madras High court ruled that An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year'.who has been completed service for 4 years and 240 days, is eligible for gratuity.
Guest
(Expert) 07 October 2011
Shailesh Kr. Shah is right in his opinion.
Kota Gopal Krishna Nayak
(Querist) 08 October 2011
Thank you sirs for your replys..but i want to know if the company does not pay citing that non completion of 5 years, then what should i do.
regards
Gopal Nayak
Sailesh Kumar Shah
(Expert) 08 October 2011
Section 8 of the Payment of Gratuity Act deals with RECOVERY OF GRATUITY. Which says:-
If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :
Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate :
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.
Guest
(Expert) 10 October 2011
Shailesh is again right in his advice.
K.S.Srinivas
(Expert) 15 October 2011
I totally agree with Expert Shailesh Kr. Shah.
Kota Gopal Krishna Nayak
(Querist) 16 October 2011
Dear Sirs,
It really amazes me. All you experts are saying me that I am eligible for gratuity. But i fail to understand why the company is flatly refusing my claim. Why is this that the company is not informed about the laws. I really dont know how to go about.
regards
Guest
(Expert) 16 October 2011
Dear Nayak,
The management of the company cannot be said to be not aware of the law on gratuity. In fact, the company is trying to avoid making payment by one or the other plea.
Just ask the company to quote the relevant section of law under which it thinks that the gratuity is not entitled to you. The company would definitely avoid quoting any law in support of its reply. In case the company quotes the law of mininimum five years of service for eligibility, just come back with the reply received by you from the company, the experts would provide you the appropriate solution, as the law clearly lays down that 240 days of service of any employee in the last year has to be reckoned as a year for the purpose of payment of gratuity.
Kota Gopal Krishna Nayak
(Querist) 25 October 2011
dear Sir,
This is what the reply i got from the company when i asked to quote them the law.
"Dear Mr. Gopal Krishna,
As per Payment of Gratuity Rules an employee has to be on the rolls of the Company continuously for five years.
Unfortunately, you are short of 4 months as regular employee of the Company, hence we are constrained to inform you that you are not covered under Gratuity Rules. (DOJ: 10-8-2006 DOL: 30 April, 2011)."
Sailesh Kumar Shah
(Expert) 25 October 2011
Make representation before company with below judgement:-
1998 LLR 1072
MADRAS HIGH COURT
Hon’ble Mr. S.M. Abdul Wahab J.
W.P. No. 21350f1987
Decided on 12.6.1996
MetturBeardseU Ltd. (represented by Its Personnel Manager), Madras
vs.
Regional Labour Commissioner (Central)
(Authority under Payment of Gratuity Act).
Madras & Others
PAYMENT OF GRATUITY ACT 1972- Sections 2(a), 2(b), 2(c), 2(e) and 2A -'Continuous service' - Qualifying period of service by an employee –Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year as stipulated by section 2A of the Act -Thus an employee who has Put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous s6rvice of five years -His claim for gratuity is tenable.
