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Nishanth (PFA)     03 April 2014

Claim gratuity

Hello I worked in a company from Sep 19, 2007 to Sep 29, 2012 thus completing 5 years. As per Payment OF Gratuity Act, all the establishments with more than 10 employees are supposed to pay Gratuity. Recently I contacted the company HR and I was informed that they have only PF in their rule book no gratuity. Are there any possiblities that company can not give gratuity like this. What should I do next to claim it?

 

Any help if greatly appreciated. Thanks



Learning

 6 Replies

Kumar Doab (FIN)     03 April 2014

If the payment of Gratuity Act 1972 is applicable to the establishment then it has pay the Gratuity.

The employer has to supply the notice of determination of Gratuity and pay Gratuity even if no application by employee is made.

IN your case thr employer shall be liable to tender interest @10%/pa for the delay………………..

You may submit FormI of course under proper acknowledgment preferably thru redg. Post, along with a letter mentioning all representations made so far by phone/in person/by email/letter etc and mention names, dates,……………………………brief minutes of discussion.

 

 

You may refer to;

Payment of Gratuity Act 1972: Sec1: 3 (b) (c) (3A) , Sec2A: 2(a) (i) (ii), Sec7, Sec8, Sec9…………

There are many threads on similar query at;

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.Uz09BUeBmXU

e.g;

https://www.lawyersclubindia.com/forum/Company-is-rejecting-gratuity-after-working-4-9-years-91201.asp#.Uz057EeBmXU

 

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp#.Uz09IUeBmXU

 

 

You may record (audio/visual) the reply of HR as posted by you and later draw the attention of HR and employer to word ‘WHOEVER’ IN SEC: 9, AND PROVISION OF PUNISHMENT AND PENALTY….


Attached File : 574167399 paymentofgratuityact(1).doc downloaded: 121 times
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Nishanth (PFA)     05 April 2014

Thank you for the information. Just a clarification. When you said "If the payment of Gratuity Act 1972 is applicable to the establishment then it has pay the Gratuity." Does this mean the company has to specify about gratuity in offer letter. Also as per Payment of gratuity act 1972, a company having more than 10 employees comes under this act.

 

Please advice.

Thanks

Kumar Doab (FIN)     05 April 2014

Even if the company has not stated about Gratuity in appointment letter if it is covered by the Act, it is liable to pay.

It has already been mentioned that “You may refer to;

Payment of Gratuity Act 1972: Sec1: 3 (b) (c) (3A)

 

 

This section contains provisions about applicability of the Act to an establishment.

1 Like

Nishanth (PFA)     05 April 2014

Ok thank you got it. One last question, if company does not agree to pay gratuity where should I approach. I just spoke over the phone with the HR and they informed they dont have anything like gratuity. Should I still send Form 1 or I should directly approach labour commison.

 

Thanks a lot for clarifying my doubts

Kumar Doab (FIN)     05 April 2014

 

You may submit by letter addressed to appointing authority, MD,thru redg. Post that despite your representations in office/by phone/by email/in person on dated…………………..to Mr/Ms…………………………the notice of determination of Gratuity has not been supplied to you and FormI is attached, and company should supply payment of  Gratuity immediately by redg. Post only.

If Gratuity is applicable and you have recorded the statement of HR personnel you have the option to draw the attention to word ‘WHOEVER’ and provisions of penalty and punishment in Sec9………………

 

You can approach controlling Authority of Gratuity...………..which might be ALC/DLC in O/o Labor Commissioner.

Nishanth (PFA)     05 April 2014

Thanks a lot for the help.

 

Regards

Nishanth


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