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gr_sek (am)     12 February 2013

Query regarding gratuity eligibility

  

Hi,

I joined my previous company on Jan 22, 2007 and left on 14th Nov,2012. Since I completed 4 years 240 days in that company I have asked finance team on the eligibility for gratuity, they themselves are not sure and after many follow ups they told me that they have included me in the list and sent it for LIC approval. After 2 months I got below reply.

"Had an update from LIC, they have rejected claims of those who have not completed five years service and your claim is also there in the rejected list."

I replied with few references from web where it is clearly mentioned that 4 years 240 days are sufficient to claim gratuity and asking for next level of contact (either from organisation or from LIC), but dint get any reply.

Please advice  on how to proceed  on this.

 

Thank in advance....

 

 

  



Learning

 14 Replies

Kumar Doab (FIN)     13 February 2013

If DOJ, DOL posted by you are correct you have completed 5 years.

Kindly go thru a highly informative thread at:

 

 

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

 

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

 

Isaac Gabriel (Advocate)     14 February 2013

I suppose your employer is linked with the LIC for the Payment of Gratuity to employees. Gratuity eligibility cannot be prevented by the LIC.It is the prerogative of the employer to comply witht he gratuity act and decide.The LIC in accordance with the arrangengement should comply with the demand for grant of gratuity to employees.

Kumar Doab (FIN)     14 February 2013

Mr. Gabriel has given valuable advice. Kindly follow it.

The employer and LIC are not above law of the land and courts of law.

The thread at the following link is highly informative.

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

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

1 Like

gr_sek (am)     14 February 2013

Mr Kumar and Mr Gabriel,

Thank you very much for your advice. After I asked for next level of contact, they stopped  responding to my mails. Please advise on  legal actions to proceed further...

Thanks in advance.

 

 

 

Kumar Doab (FIN)     15 February 2013

Majority of the queries you are raising are discussed in detail in the LCI thread:

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

 

You have posted that:

DOJ:          Jan 22, 2007

DOL:          Nov 14, 2012

 

Thus you have completed 5 years.Then why you or your company is maintaining that you have not completed 5 years in service?

 

You may submit Form I to appointing authority/MD, under proper acknowledgment.

You may obtain latest version from Head-HR or o/o Controlling Authority of Gratuity which may be DLC in o/o Labor commissioner.Later if required you can also submit copy for FormI to Controlling Authority of Gratuity under proper acknowledgment.

 

Refer to:

Payment of Gratuity Act, 1972

 

Section: 2A
Continuous service.

Section: 7
Determination of the amount of gratuity.

 

 

 

gr_sek (am)     15 February 2013

Sorry for the confusion, my joining date is 22 Jan, 2008.

Isaac Gabriel (Advocate)     16 February 2013

You are eligible.

1 Like

gr_sek (am)     04 May 2013

Thank you Mr Kumar and Mr Gabriel for the replies. After somany follow ups with my previous company, I got my gratuity amount today.  As I mentioned earlier HR people were not even responding to my mails.  After I got  replies from you,  I sent this as a reference and told them that I will take legal proceedings. Then they replied back immediately and said that they will again check with LIC on this and surprisingly this time the answer was YES. atlast after six months I received the money.

Once again thank you very much.

Kumar Doab (FIN)     08 May 2013

Company is liable and you are entitled to get interest on delayed payment which is probably @10%/pa.

You may demand the same in writing.

You are entitled to know the amount paid by LIC to your company. There are threads suggesting companies paying amounts less than the amount received from LIC. Demand copy of certificate of payment isseud by LIC.

Don't give up anything as a parting gift.

1 Like

Sasidharan (Retired Labour Commissioner (Central))     08 May 2013

Yes I agree with Mr, Kumar Doab. An employer has to pay the gratuity within 30 days of termination service, if it is not paid within the time prescribed under the law the employer has to pay interest from the date of due to till the date of actual payment. They must be claimed.

K. Sasidharan Nair

Vinod (se)     05 September 2013

Hello Everybody


In my last company (an IT company), I have worked from  26th Jun 2006 To 7th FEB 2011.
In total i have worked for  4 years 7 months and 12 days. Company is 5 days a week working.

 

1.) Am i elgible to get Gratuity under 4 year 190 days rule?
2.) Does IT companies fall under 4 year 240 days rule instead of 4 year 190 days rule?
3.) Can this 4 year 240 be considered as 4 year 8 months, Then my 4 year 7 months and 12 days can be considered as 4 years 8 months?


Please clarify me the experts??

 

Kumar Doab (FIN)     05 September 2013

If you have completed 190 days (including off days/holidays/approved leave etc) in 5th year,

you should be eligible. Submit FormI  by redg. post as ap.

 

This and other threads quoted here are self explanatory. 

Vinod (se)     06 September 2013

Thanks Kumar.

 

Im still having confusion, for an IT company whether the rule is

4 years 190 days or

4 years 240 days?


Why is this confusion?

Kumar Doab (FIN)     06 September 2013

IT/ITeS/BPO companies are covered by (Name of State) Shops and Commercial Establishments Act of respective states and have to register under this enactment.

The registration certificate has to be displayed at a conspicuous place/notice board, which you can also see.

The rules are same for IT companies.

Submit FormI as ap by redg. post and keep the acknowledgment.

 

If you are not bale to handle the matter on your own approach your lawyer.


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