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ramesh (n/a)     20 October 2011

Gratuity

Hi

Please advice if a company has to register themself with any authority for Gratuity Act 1972;

If yes, how to find out the authority & what are the forms, returns are applicable.

Further, there is a judgement from Madra High Court that if an employee rendered more than 240 days after completion of 4 years, he/she would be entitled for Gratuity. I gues this has not been challanged in any other court of law.  Would this be applicable to all states? If yes, in that case the gratuity would be payable as same as like completion of 5 years?

Please advice

Many thanks

Regards

Ramesh

 



Learning

 10 Replies

M.Sheik Mohammed Ali (advocate)     20 October 2011

yes its compulsory completed aforesaid days

1 Like

Ajay Mittal (manager (f&A))     21 October 2011

i agree with mr. m. sheik

darshana sawant (associate consultant)     21 October 2011

dear mr ramesh

 

In case your establishment engages more than 10 workmen, the Payment of Gratuity act is applicable, wherein no registration is required but notice of opening was to be given at the time of commencement.  However if you have an employee who has completed 4 years and beyond 6 months, then gratuity is applicable as if he has completed 5 years of service.  The formula for calculation of gratuity is  26 x salary divided by 15.  The gratuity is to be paid within 1 month of the employees resignation or termination.  The appropriate govt is the state govt for the act.

1 Like

rupali (Sr. Accounts Executive)     21 October 2011

Hello,

My husband left his job in March 2011 after completion of more than 10 years, as per his appointement letter he is entitled for Gratuity. Since we have been follwing up since last 3 months and accouts dept. telling that they have not yet recd. payment from LIC. However I personlly checked with LIC & they have confirmed that they have released the payment in August & same has been encashed from Compnay.

As we asked the company and gave the details of the payment, they are telling us to give some time. And now they are not even attending our calls.

Please advice.

Thanks and regards,

ramesh (n/a)     21 October 2011

Hi

I had checked these details yesterday only; though experts can comment on this clearly

  • An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer;
  • Within 15 days of receipt of application, the employer shall if the claim found admissable issue a notice in Form "L" to the applicant employee specify the amount payable and fixing a date not later than 30 days after the date of receipt of application for payment therefor
  • or if the claim is found not admissable they should issue a notice in Form "M" to the applicant employee specifying the reasons why the claim for grautity is not considered admissable.
  • In both the case a copy of the notice shall be endorsed to the controlling authority.

This means within 30 days the payment should have been made.

Now you have an option to apply in FORM "N" to the controlling authority for issue a direction to the employer. The Controlling authority may call upon the employee & the employer to hear & decide on the case. If it found that the applicant is entitled to payment of gratuity under the Act, the controlling authority would issue notice to the employer in Form "R" specifying the amount payable and directing to pay within 30 days from the date of receipt.

All the Assistant Labour Commissioners and Labour Officers in the Labour Department are generally the Controlling Authority and all the Deputy Labour Commissioners are the Appellate Authority under the Act.

Experts may please confirm the above.

Thanks & Regards

Ramesh

Vijayarajan (Executive Director)     23 October 2011

The PG Act, 1972 is applicable to all estts employing or employed  10 or more workers on any day. Emplyees who have 5 years of service are eligible for gratuity. If they are not getting it, they may file an application to the controlling authority. If the application is delayed a condonation application also should be filed along with the application.

Kumar Doab (FIN)     23 October 2011

Dear Rupali,

Your husband left in March and LIC paid in August but the company has not paid the amount to your husband.

You may stop calling the company on phone.

You may obtain the details in writing from LIC by submitting a written representation or by raising RTI application and ask for the date of receipt of application by them, date amount cheque number drawn on which bank and date of dispatch and whether the cheque is encashed or not as per their records. It is imp. to know, if the company has delayed the submission to LIC? Company may claim the cheque was sent by normal post or by courier; however you can always contest it.

You can lodge a complaint citing date of each representation by phone, in person, by letter, with o/o controlling authority which may be Local o/o Labor Commissioner, and demand penalty to company and compensation to your husband. The conduct of company is bad and they are fit to be left loose hence let them suffer the enquiries and penalty by o/o controlling authority.

You are sure to get the payment.

Vijayarajan (Executive Director)     24 October 2011

There are two levels of controlling authorities. one under state govt and other under the centrel govt. You have to identify the appropriate authority to file the claim.

Kumar Doab (FIN)     24 October 2011

Kindly follow the valuable advice given by learned Mr. Vijayarajan and stake a claim for your rights.

SURESH GODBOLE (ADVOCATE)     28 October 2011

It is strange that  LIC paid the amount to the  Company account and not Personal Account of the person who whose life was insured.

Whether the premium wnet direct from the Employer after deducting it from ones salary or being paid by the individual himself is immaterial.

Ms Rupali ,  if you have received the LIC deed or document  , you can claim straight from LIC . They have no business to pay  An individuals amount to Company .

Depends on the facts

0-9929596546


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