LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Y B Arya (Accountant)     20 May 2014

Co. not agree for full & final settlement with gratuity

Dear All Respected Senior, I am working in Proprietorship Firm (Trading Company) from last 15 years as Accountant without any Appointment Letter. Company has 15 employee in there Delhi, Gurgaon and Chandigarh Office. Company had given 15 % increment in year 2006-2008 and 12.5% increment in year 2009-2011 and 10% increment in year 2011-2013 but this year Company has refused to give any increment while the GTO, GP & NP was constantly increasing. Company has shown 12% Bonus in their Balance Sheet every year but not given anything to their employee and said that they have CASH expense to get order from Govt. Department etc so they compensate the CASH expenses with Bonus. When I have discussed with company that I want to leave this company and ask for Gratuity and leave incashment of my 40 days leave. They are not agree to give incashment of Leave and Guatuity and start harassing me that they will not give me anything and said go to court it will take 20 years to settlement. I request you all to give me advise, I am in very harass and embress. Regards, Y B Arya



Learning

 5 Replies

SAI KIRAN R (ADVOCATE)     20 May 2014

You will have to make a written demand about grauity amount with your employer after you resign. Keep proper acknowlegement like Register post acknowlegement for having served such demand letter. If your employer fails to make payment within a month time, approach the competent Authority with application against the employer. Your employer will be liable to pay grauity amount along with interest subject to proof and evidence about your employment as your are claiming. Your employer will be liable to pay the amount within reasonable time period.

Y B Arya (Accountant)     20 May 2014

Thanks for reply.

Can I also ask for Bonus which was shown every year in Account Book but not given to any employees.

Regards

Kumar Doab (FIN)     21 May 2014

The redg. office of the company is in which state?

You are located in which state?

This info shall help hence post it.

Appointment letter alone is not proof of employment. Various forms and registers prescribed under enactment s applicable to the establishment make it mandatory to keep, maintain, provide, details of employees. Get hold of copy(ies) of such forms and registers……………….

The salary slip has to be supplied to each employee in advance before payment of wages:
-- as per Payment of Wages Act 1936: Sec13A and should be signed by both employer and employee. This Act is applicable to all employees drawing wages upto Rs.18000/pm.

 

--and also asp per Minimum Wage (Central) Rules, 1950, Rule26(3) 26(4)

https://www.lawzonline.com/bareacts/minimum-wages-central-rules/rule26-minimum-wages-central-rules.htm

 

 

The establishment should be covered under (Name of the state) Shops and Commercial Establishments Act., and this Act and (Name of the state) Shops and Commercial Establishments Rules may be looked into.

The leave encashment  shall be as per (Name of the state) Shops and Commercial Establishments Act.

IT can not be inferior to the provisions of this Act. It can be superior.

 

Bonus shall be as per Payment of Bonus Act 1961 and should have been paid within 8 months   max. by 30th Nov or employer can be punished/penalized. Being an accountant you would be aware that payment of Bonus should be by cheque.

 

 

Payment of Gratuity Act 1972: Sec:

1 (3) (b)(i) (ii) ,3A: The establishment should have been covered by the Act and Act should be applicable and employees should be eligible for Gratuity.

 

 

Y B Arya (Accountant)     21 May 2014

Dear Sir,

Thanks for Reply,

Please also update on below.

Registered Office is in Delhi and I am also employed in Delhi Office and getting salary of Rs.20,500/- in Bank A/c.

I have copy of Attendance Register, Employee salary sheet which is given to Bank for salary transfer and Authority Letter given to Sales Tax. Is it sufficient proof.  

Bonus has been shown in CASH but no voucher has been signed by any employees.

Company has PAN No., TAN No. Service Tax Registration No, Central Excise No. and also IEC (Import Export Registration).

You informed

Bonus shall be as per Payment of Bonus Act 1961 and should have been paid within 8 months   max. by 30th Nov or employee can be punished/penalized. 

Why employee can punished/penalized? Why not employer ???

Thanks in advance.

Regards,

Kumar Doab (FIN)     21 May 2014

Employer is liable to be penalized, and not the employee.

The error has been corrected.

 

>>> Payment of Bonus Act 1961:

The attached Gazette notification and commentary in it is self explanatory.

The Payment of Bonus was made mandatory to be made thru a/c payee cheque or in Bank a/c.

You can obtain the copy for Delhi from O/o Labor Commissioner Delhi.

If you have not signed the voucher for cash payment (for period before the amendment and its notification in gazette) then you can succeed that the payment is not made to you.

If bonus payment is narrated in contract o employment/appointment letter or in implied service then you may also pursue thru ID Act:33(C)(2)……………………………your labor consultant/service lawyer can elaborate further.

Employer can pay Bonus even if employee is drawing wages above Rs.10000/pm as per current wage ceiling. If employer has adjusted Bonus but has not paid and can establish with evidence then you may have a good case for claim.

 

For previous years you can look for in amendments to the Act and /or approach o/o Labor Commissioner.

There are many threads on Bonus that you may find relevant e.g;

https://www.lawyersclubindia.com/forum/details.asp?mod_id=16610&offset=1#.UmfqR3CAqWM

YOU may search for more, if reqd.

 

 

>>> The establishment should be covered by the Delhi Shops and Commercial Establishments Act that is so employee friendly:

Sec;2(5,7,15,30),

18. WAGES FOR THE HOLIDAY.

19. TIME AND CONDITIONS OF PAYMENT OF WAGES.

 

21,                       

 

22. LEAVE.

23. WAGES DURING LEAVE.

30. Notice of Dismissal. (a) Applicability of section 30

The protection of the provisions of the section is available to all persons who fall within the

definition of the term “employee” as given in section 2(7) of the Act and who have put in three

months’ continuous services. In the absence of any standing orders or any contract between the

employer and the contesting respondent containing any particular terms or conditions, the

conditions of service of the employee relating to his employment in an establishment at Delhi are

covered by section 30(1) of Delhi Shops and Establishments Act, 1954;

33. Records.

(a) Particulars and forms of the records required to be maintained under section 33

Failure to maintain the records in the prescribed form and in the prescribed manner…………. or a record of the hours worked and the

amount of leave taken by end of the intervals allowed for rest and meals or not entering the

particulars of all employment overtime, amounts to contravention of the provisions of section 33

of the Act and the proprietor, employer or the manager of such an establishment is liable to be

punished……

The register of employment and wages is required to be kept in Form ‘G’ duly bound and

pages serially numbered. Where, however, the opening and closing hours are ordinarily uniform,

the employer may maintain such register in Form ‘H’ alongwith a separate register of wages and

record of leave in Form ‘I

al.

(d) Can an Inspector require an employer to produce the record in his office for

 

 

34. EMPLOYER TO FURNISH LETTERS OF APPOINTMENT TO EMPLOYEES

37. POWERS AND DUTIES OF INSPECTOR: (b) Duties of the Inspector: (i) that in dispensing with the services of an employee the provision of the Act and Rules

have been complied with and no dues payable under the Act or Rules have been

withheld;

 

>>> Payment of Wages Act 1936: Sec13A : Salary slip record should be maintained for min.3years.

 

 

>>> Payment of Gratuity Act 1972:

Sec:1 (3) (b)(i) (ii) ,3A: The establishment employs more than 10 persons, should have been covered by the Act and Act should be applicable and employees should be eligible for Gratuity.

Sec:2A,4,4A,7,7A,8,

9; Penalties; There is a provision of penalty, punishment with imprisonment………….

You may put the word ……………….’WHOEVER”

Employee can submit FormI one month before effective date of resignation or even any time without any limit.

Employer has to supply notice of determination of Gratuity and pay within 30 days or employee is eligible for interest @10%pa.

If employer does not supply notice of determination of Gratuity you may submit in writing under proper acknowledgment, that notice has not been supplied despite representations in office on dated………….to Mr/Ms………..and FormI is attached and instrument of payment payable at………………..be supplied to you by redg. post and that postage prepaid self addressed envelope is attached for sending redg. post to you.

  

 

 

 

 

 

 

 

 

 


Attached File : 517661023 delhi shops & establishments act, 1954.pdf downloaded: 244 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register