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Bhushan More   14 August 2018

Gratuity

If employee did not completed more than 5 Years in the employment then he would have eligible for gratuity? And gratuity amount is deducted from his CTC.


Learning

 5 Replies

Adv. Varun Vij (Advocate)     14 August 2018

No, to be eligible for gratuity benefits the employee needs to serve the organisation for atleast 5 years.

Vipin   14 August 2018

BIG No .. Only after completion with continuation of Five years

Kumar Doab (FIN)     14 August 2018

While posting such queries employee should post basic information!

What is this establishment; Govt, private, Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it (From beginning)?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

 

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Does the establishment have its appraisal system? Do you have copy of signed appraisal forms, matrix, KRA’s, performance date? How was your performance?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

 

Which Gratuity Rules apply to establishment?

Did you download the copy of applicable rules?

You worked from which date to which date ( DOJ-LWD)?

The establishment operates in how many states?

The establishment works for how many days/week?

 

You may revert to relevant points.

Name of company etc is not required so don’t post names etc .

Kumar Doab (FIN)     14 August 2018

 

 

Employee (e.g; You) should consult and take help of elders in the family, competent and experienced well wishers, seasoned employees/trade union leaders, a very able senior LOCAL counsel of unshakable repute and integrity specializing in Labor/service   matters and well versed with latest citations, LOCAL applicable rules/laws/ … and having successful track record…. and worth his/her salt…..and show the case related docs etc etc for a considered opinion to handle any situation…properly.

With time and experience majority of the employee become properly informed and are able to handle the matters with their own knowledge and skills; persuasion, persistence, negotiation, reasoning…   Perspectives; Employer can pay Gratuity on LWD with FnF..

Employee can submit letter to pay Gratuity 30days before LWD..

Still; You are closest to the facts and nature of establishment and bosses and HR personnel you are working with………. And may keep copy of notice of resignation (also POD), and get offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………     

After relieving submit letter under proper acknowledgment stating that ‘Notice of Determination of Gratuity’ {that should contain DOJ-LWD, (Basic +DA) as per last drawn salary, NO. of years in service}, Gratuity payment, requisite forms are not supplied and may be supplied…    

The employer is under obligation to reply and agree to pay or decline to pay citing reason.

Gratuity= {(Basic+DA)/26*15*No. of years in service}

(Basic +DA) as per last drawn salary, In your case No. of years for calculation is 5..

Thereafter you can submit FormI signed by you, under proper acknowledgment in office /by Redg. Post. There are many threads on similar query at LCI with illustrations, citations/judgments.

Even if NO application is submitted by employee, employer is under obligation to calculate and pay gratuity within 30days of LWD or interest @ 10%pa has to be paid for the delayed period.

 

Kumar Doab (FIN)     14 August 2018

 

 

If you are unable to resolve on your own take help of very able LOCAL counsels of unshakable repute and integrity as already suggested above.

At each location three are some counsels that specialize in such matters and they are well known.

Check for such counsels at LOCAL Labor court/CGIT, O/o LOCAL Controlling Authority of Gratuity, CAT, School- Educational Tribunal, civil courts, HC…… 


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