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Santosh (SSE)     18 September 2013

Employee gratuity act

Hello Sir,

I was working for a company from last 4.9 years. I just want to know that what is the Gratuity Law right now in India. Am I eligible for this . Bcz some of my friend saying that its 5 year and some of saying its 4.8 years. 

 

Please help me on it so that I can claim for my gratuity bonus amount 

 

Thanks

Santosh



Learning

 1 Replies

Kumar Doab (FIN)     18 September 2013

 

The Payment of Gratuity Act 1972, is a statue and is applicable on employer.

Section: 2A: Continuous service: 2 (a) (i) (ii), (b) (i) (ii)

(Thus If you have worked for 190/240 days in 5th year you should be eligible)

From DOJ calculate 1Y e.g; 1st  Jan to 31st Dec………………thus 4Y. In 5th year calculate 240 days if the establishment is working on 6days/week and 190 days if establishment works 5 days/week……………………

Section: 7
Determination of the amount of gratuity.

 

In your case the employer and its designated person in HR has not issued any notice to you with a copy to Controlling Authority of Gratuity on calculation of Gratuity payable to you. If you are eligible it is a lapse at the end of employer.

 

Did you submit FormI? Submit as ap by redg. post.

You may demand reply and payment (by bank DD only) by  redg. post only.

Your employer himself or concerned competent personnel in HR have to reply to you.

Employer has to decline or accept and if it declines it has to explain the reason for declinature in writing and supply the declinature by effective odes of communication e.g redg. post………………………….and the reason for declinature has to satisfy the provision of the statue……………….

If company has delayed the payment it has pay the interest as stipulated in the statue which was @ 10% from date of eligibility (DOL) ................................You may confirm the latest rate.

There are many threads on Gratuity at:

 

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

e.g:

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

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

 

IT IS BEING SUGGESTED IN ALMOST ALL THREADS THAT EMPLOYEE SHOULD STOP DEALING WITH EMPLOYER VERBALLY::::: COME OUT OF ASKING, SAYING, TELLING MODE::::: AND TRANSACT IN WRITING BY LETTER THRU REDG. POST.THE COMPNAY CAN NOT KEEP ANY AMOUNT FROM PAYMENT DISBURSED BY LIC TO COMPANY FROM GRATUITY ACCOUNT OF EMPLOYEE. COMPNAY HAS TO PAY ENTIRE AMOUNT TO EMPLOYEE IT HAS RECEIVED FROM LIC, EVEN IF AMOUNT OF GARTUITY  CALCULATED BY EMPLOYER BY FORMULAE OF GRATUITY IS LESS THAN AMOUNTS EMPLOYER HAS RECEIVED FROM LIC.

 

 

 

 

IN OTHER SITUATION LET US ASSUME THAT AMOUNT PAID BY LIC TO COMPNAY IS LESS THAN AMOUNT OF GRATUITY CALCULATED BY EMPLOYER BY FORMULAE FOR CALCULATION OF GRATUITY, STILL EMPLOYER HAS TO PAY HIGHER AMOUNT CALCULATED BY FORMULAE FOR CALCULATION OF GRATUITY………….

 

 

 

 


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