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D Kulkarni (Analyst)     01 February 2014

Entitled for gratuity?

A relative of mine retired as a School Teacher from a reputed Govt aided School in Mumbai  in 1994 after completing 25 years of uninterrupted service and has not received any gratuity. I would like to know from the legal luminaries in this forum whether he is within his rights to claim Gratuity from the School.

I have posted a link to The payment of Gratuity(Amendment) bill 2007 which mentions that the date of effect for Educational Institutes is 19.04.1997. Since my relative retired in 1994 is he eligible for Gratuity as the school insists he doesn't qualify. 

 

https://www.prsindia.org/uploads/media/1196228046/scr1204095937_Payment_of_Gratuity.pdf

Thanks in advance



 7 Replies

Kumar Doab (FIN)     02 February 2014

He is eligible. Instead of remaining entangled in verbal transactions he may write to appointing authority, Chairman,  thru redg. post under proper acknowledgment that the 'Notice of Determination of Gratuity' has not been supplied to him ( it is to be supplied with a copy to Controlling Authority of Gratuity) and FormI is attached.

The Gratuity is to be paid within 1 month of being eligible and school has to tender interest for the period of delay @10%/pa.


You have gone thru the notification.

You may go thru:

Bombay High Court

The President/Secretary vs Shri Pradipkumar S/O       on 21 February 2012

 

 

https://indiankanoon.org/doc/117816025/?type=print

 

 

 

 

 

 

 

7…………………….Taking a note of such

 

 

 

observation, the Legislature has amended the definition of 'employee' under Section 2(e) of the said Act with

 

 

 

effect from 3-4-1997,

 

 

 

which is in tune with the observations made in para 25 of the judgment of the Apex

Court. The Objects and Reasons of such amendment make the intention of the Legislature very clear to apply

 

the provisions of the Payment of Gratuity Act to the Teachers also. The amended definition is wide enough to

 

 

 

 

 

cover the category of the Teachers for the purpose of applicability of the said Act. There is no escape but to

 

 

 

hold that a Teacher is an 'employee' within the meaning of Section 2(e) of the said Act and hence the

 

 

provisions of the said Act are applicable.

 

 

There are many threads on Gratuity at LCI :


https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.Uu4C7UeBmXU



that you may find relevant e.g;




https://www.lawyersclubindia.com/forum/Is-the-private-school-teachers-applicable-for-gratuity--92288.asp#.Uu4A60eBmXV



https://www.lawyersclubindia.com/forum/Private-school-teachers-gratuity-effective-from-which-date--96881.asp#.Uu4DDkeBmXU




Hope this shall suffice.


Attached File : 780786727 the presidentsecretary vs shri pradipkumar.docx downloaded: 153 times

D Kulkarni (Analyst)     05 February 2014

Mr. Kumar Doab,

I am extremely grateful for your articulate reply that has narrated the factual position on my relatives claim for gratuity for which i express my deepest thanks.

My understanding from your post is that from now on my relative will have to hire the services of a lawyer to redress his Gratuity claim with the School management.Am I right ?

 

What is the Address of the Chairman Appointing authority?

Kumar Doab (FIN)     05 February 2014

>>> The appointing authority is person/designation that has signed on appointment order of the employee.

The Chairman is Chairman of the educational instt. where employee was employed.

The address of both should be known to the employee.

 

>>> The enactment applicable in case of employee as already noted by you is: Payment of Gratuity Act 1972 and you have already made note of Sec 2(e), 7. You may also refer to: Sec 3, 4, 4A, 7A, 8, 9……………….

 

>>> You may also refer to The Payment of Gratuity (Maharashtra) Rules, 1972:

5) Compulsory insurance of the employees is to be obtained.

 

You would note that in state of Maharashtra the condition of compulsory insurance has been notified. Therefore each employer should compulsorily obtain insurance. This is also in favor of employee.

 

If the employer fails to do so it is provided for that:

Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupees and in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues.”

 

Therefore employee may demand to inform him in writing the name of insurer, policy number, log in id and allow him to log onto the Gratuity a/c………….

 

The employee may also try to find out from P&G section of LIC. He may have to try with Div. Manager-CRM or pursue thru RTI.

 

If the employer has obtained compulsory insurance the insurer (usually LIC) would create an a/c for employee and release Gratuity, payment certificate, and payment by cheque to the employer.  

 

There are judgments by court of law that has decided that employer shall have to release full payment (without keeping even a penny ) to the employee even if amount of Gratuity determined as per formulae of calculation of Gratuity  is less than amounts released by LIC.

Therefore employee may also demand certified copy of payment certificate, and cheque released to the employer.

 

Nedupuzha Service Co-Operative ... vs K.Rugmani

https://indiankanoon.org/doc/77470836/?type=print

 

>>> The employer should make the payment of Gratuity within 1 month.

Since employer has not supplied the ‘Notice of Determination of Gratuity’ as per Sec7 the employee may submit FormI ( provided for in the attachment) along with a covering letter thru redg. post under proper acknowledgment stating that despite representations in person in office /by letter/ email/phon etc (if possible mention dates, names, designations etc) the 'Notice of Determination of Gratuity' has not been supplied to him and FormI is attached.

If the employer still does not pay the employee can approach Controlling Authority of Gratuity (state or central as the case may be in case of employee who should asses which is appropriate govt. in his case; state or central) in person or thru any person authorized by him.

 

It shall be appropriate to approach a competent and experienced labor consultant ( which may not necessarily be a lawyer)/ lawyer-law firm dealing in labor/service  matters and proceed under expert advice of your counsel.

The employee can also approach employee’s unions, trade unions.

 

>>> You would notice from various publications that some employers have been miser in payment of Gratuity and have very narrow view, despite the clear provisions of Payment of Gratuity Act and judgments by courts of law.

The designated personnel in HR/Admin/personnel dept have to advise the employer to release the gratuity and employer should release the gratuity even if the designated personnel misguides or subscribes to unlawful advise of employer……………..

Therefore it may not be out of place to emphasize upon term “WHOEVER” in Sec: 9 of Payment of Gratuity Act  AND seek penalty and punishment including imprisonment as provided for such “WHOEVERS”………………..

 

 

 

   

 

 


Attached File : 134903370 the payment of gratuity (maharshtra) rules 1972.pdf, 134903370 nedupuzha service co-operative ... vs k.rugmani.docx downloaded: 164 times

Abhinav (Branch manager)     05 February 2014

Dear sir, I served in an organisation for 4 years 7 months and 13 days which means 4 years 227 days in a 6 days working company. Am I eligible for gratuity payment?

 

regards

Kumar Doab (FIN)     05 February 2014

@ Abhinav,

>>> As per Section: 2A: Continuous service:2(a) (ii):

You are not eligible.

 

>>> Section: 4 : Payment of gratuity.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.

Therefore even if you are not eligible the employer can till grant Gratuity to you.

Make a request to god offices of appointing authority, MD, Chairman.

 

>>> Is the Gratuity component stated in CTC sheet?

If yes you may have some chance.

 

Consult your lawyer.

Abhinav (Branch manager)     05 February 2014

Dear sir,

yes the gratuity was stated in the ctc offer letter given to me.

can you let me know how much is the minimum eligibility for a 6 days working company?

regards

Kumar Doab (FIN)     05 February 2014

As per Section: 2A: Continuous service:2(a) (ii): 240 days

There are many threads on Gratuity at LCI :


 

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.Uu4C7UeBmXU


including on eligibility if Gratuity is included in CTC.

You may search and go thru such threads.

Consult your lawyer.



Attached File : 134924006 paymentofgratuityact(1).doc downloaded: 152 times

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