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Anonymousname (Business)     30 May 2018

Employer not paying gratuity

Dear Sir

I have worked in an autonomous  government organization for 20+ years, later I hav resigned due to internal politics of organization.

I have given due notice during resignation and was relieved as per procedure. The organization is not paying gratuity inspite of reminders. I have written atleast 3 letters to head of organization to release gratuity, but no response is received.

What to do now..?



Learning

 1 Replies

Vanshika Kapoor   13 June 2018

Payment of gratuity is ensured by The Payment of Gratuity Act, 1972, thus making it mandatory under a statute. The act is applicable to every legal place of employment such as mines, factory, shops, oil field, plantation, railway company, and ports. But, it must be noted that these employments must have had or have at least 10 employees, on any day of the preceding one year. 

After completion of 30 days, the employer has to pay you not only the gratuity amount but also simple interest incurring on it. This simple interest rate cannot exceed the rate imposed by the Central Government though.

 


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