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Gratuity applicabilty

(Querist) 14 August 2013 This query is : Resolved 
Dear sir,

We are joining a company in sept-2010 which is a contract manufacturing site of MNC, now the company closed due to contract not renew till date . can we claim for gratuity
Devajyoti Barman (Expert) 14 August 2013
Yes, surely.
somkumar saini (Querist) 14 August 2013
Hi Dev,
Thanks a lot for your valuable comment.
Can u further advise,against which clause of law it is applicable.
Can u share any relevant case also in which court has ask the employer to pay gratuity.

Warm Regards,
Som Kumar Saini
somkumar saini (Querist) 14 August 2013
Hi All, can u advise that in case of immediate closure of any company, compensation of 3 months salary is applicable to managers or not.
Can u further advise,against which clause of law it is applicable.
Can u share any relevant case also in which court has ask the employer to pay compensation of 3 months salary.

M.Sheik Mohammed Ali (Expert) 14 August 2013
where are you from ?
actually in tamilnadu any employe should completed 5yrs in the same company than only get grautity
Kumar Doab (Expert) 14 August 2013
ID Act is not applicable as you have referred the post for a manager and thus non workman. Therefore the employee may not explore the possibilities of retrenchment/lay off in the ID Act.

Look for clause on Severance pay, redundancy, lay off etc in standing orders of the company extended to the designation of the employee in question, and appointment letter.
You can also negotiate to the best of your ability ………………….for the best you can obtain.
Minimum amounts payable should not be less than notice pay in case of termination.

Company should have issued notice to all employees.Look into the statements.

Company might have issued notice to Controlling authority of gratuity, o/o Labor commissioner..............for closure.

Since 5Y of service is not completed Gratuity may not be applicable.

If Gratuity component is stated in CTC sheet issued by employer the employee may have a chance, however let the opinion of lawyer that has seen all the documents of the employee and has analyzed the merits be final.

Valuable advice of learned experts is sought.
Raj Kumar Makkad (Expert) 15 August 2013
Your question is specific and my reply is also specific -No.

You are not entitled for the grant of gratuity as you have not completed a minimum period of 4 years 240 days in 5th year in service.
somkumar saini (Querist) 16 August 2013
dear : M.Sheik Mohammed Ali

we are working at Bhiwadi, Distt. Alwar(Rajasthan)
Deepak Nair (Expert) 16 August 2013
As per the Gratuity Act, you cannot claim gratuity in this case, as you have not completed 5 years of continuous service in this organization.
Guest (Expert) 16 August 2013
Mr. Som Kumar,

First of all, your question is clueless. For example, your query does not indicate, whether you are a contract employee and if so, of which company, a contract manufacturing company or that of an MNC? Also, who appointed you, whether the MNC or the contract manufacturing company and if appointed by the MNC, whether your services were hired only for the said contract manufacturing company?

Secondly, for eligibility of gratuity, minimum required service is 5 years.

Thirdly, gratuity is not a topic of business law. It is pertains to labour and services law, as it is permissible to individual employees for his services rendered for their employer.
Kumar Doab (Expert) 16 August 2013
Sh. P.S. Dhingra has raised valid points. You may provide details.

Were you appointed for this contract period or on the basis of FTC?
Sudhir Kumar, Advocate (Expert) 01 September 2013
agreed with Mr Dhingra.


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