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Paresh Bane (Assistant Manager)     01 October 2012

Gratuity

Dear Sir,

 

I have some doubts about my gratuity, I work in pvt. ltd. firm from Nov. 2004 till date and in my appointment letter there is 30 days notice period mentioned but nothing mentioned about gratuity.  Most of employees working with me left the organization 6 months before and they get their gratuity amt.   But suddenly organization wants to change the rules, we get our yearly appraisal arrears in Sept. 12. But still not getting appraisal letter now management suddenly wants to change the rule of notice period from 30 to 90 days and this rule they want to applied in appraisal letter.

 

Now my question are

 

1)    1)    Can any organization change the notice period rule from 30 to 90 and can it will be included in appraisal letter?

2)   2)   If after signing appraisal letter which mentioned clause 90 days notice period I leave organization with proper 30 days notice period can they recover salary amount from my gratuity?

3)    3)  After 7 years services can any organization forced to sign any type of bonds?

4)   4)   Can company terminate the employee if he/she refuse to sign this type of   appraisal letter or bond after 7 years of continues services?

5)    5)  If gratuity not included in CTC can any company refuse to give it after  resignation?

   Please guide me thanks



Learning

 11 Replies

Kumar Doab (FIN)     01 October 2012

  1. Yes. Company may draft a comprehensive letter and include many points. Employee may submit specific reply and confirm acceptance on points he wants to accept and confirm non acceptance on points he does not wants to accept. Change in notice period may amount to change in ser vice conditions and changes in contract would be in force if accepted by both the parties. Employers and their HR personnel and their craftsmen burn extra oil to craft communications and supply them thru line management in such a manner that employee is not granted time to go thru, consult and take time to revert. Employee should not sign on the spot, in haste, without consultation. If appraisal and increment in mentioned in appointment letter, employer is duty bound to conduct and grant.

2. If you have not accepted change in notice, it must not be applied to you. Company can adjust notice pay in FNF statement/settlement. Employee can ask the company to adjust notice pay in correct FNF statement, encash paid leave and disburse vide FNF statement/settlement and issue   form 16 as per correct FNF statement. Employee may refrain from tendering notice pay by DD/cash. If next employer is buying out the notice period employee may be subjected to double taxation. Gratuity can be forfeited partially or fully only in case of {Section: 4
Payment of gratuity. (6) (b)}. It is felt that Gratuity can not be attached by court decree for recovery of loan.   Withholding or Adjustment of Gratuity is not permissible under any circumstance other then those mentioned in section 4(6) of the Act

3. NO. Nothing can be forced. Employee should be tactfull to handle the situation, build record in his favor and resolve the matter in his favor skillfully.

4. NO. and Yes : who can stop the company and an adamant and  recalcitrant employer.

A smart employee shall rather record { audio/visual}such transactions submit minutes of any such meeting in time to good offices of Appointing Authority, MD, Chairman, Company Secretary and lodge grievance, in writing under acknowledgment for  redressal.

The grievance committee should redress the grievance within one month.

Or employee may tender notice of resignation under acknowledgment citing reasons.

5. NO. Gratuity is statutory right of employee. Non payment can invite punishment with imprisonment.

Employee should also submit formal request for payment of gratuity and FormI a month before effective date of resignation {in case notice of resignation is submitted} under proper acknowledgment. If employee has served notice of resignation employee has notified date of retirement.

THE PAYMENT OF GRATUITY (CENTRAL)

RULES, 19721

     7. Application for gratuity.-(1)

Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

Valuable advice of learned experts/members is sought.

 

Paresh Bane (Assistant Manager)     01 October 2012

 

Dear Sir,

Thanks for your prompt reply, i have another doubt.  Our yearly appraisal already transferred to our salary account but appraisal letters not given and if now I refuse to accept appraisal letter with 90 days notice period clause, in that case should I refund arrears amount to company if they demand and for that should i demand reason for demanding refund arrears amount in writing from company for the record or directly refund that amount to company and in which mode?  May be there is chance that company not agree to give in writing for what reason they demanding to give back the arrears amount in this situation what should be my next step.

 

Thanks

Kumar Doab (FIN)     01 October 2012

You have to handle situation and you have to prepare yourself for it. You have to decide what do you want and where you can relent. Remain amiable and keep channels of communication open. Exit time is the time to firm up and carry forward the rapport and goodwill. Talk logic and avoid emotional outbursts.

Keep the appraisal letter in original with you and submit reply by another letter or record your reply on copy of the appraisal letter but retain a copy of your reply.

You should also retain original copies of appraisal forms filled up by you and signed by you and your reporting authority and matrix/rating of points supplied to you for awarding points/rating.

It is felt that increment in wages once granted can not be taken back.

Company may not ask to refund the increment in writing. You may retain original salary slip showing increment in salary, and may not refund any amounts until demanded in writing.

Employee must develop rapport, goodwill, and apply exceptional levels of persuasion, persistence, negotiation, reasoning skills, and resolve the situation in his/her favor, while in employment. You need to convince them and delay till you submit your notice of resignation, under proper acknowledgment. Even if you submit notice by some resignation tool/software, obtain screenshots and retain copies and subsequently submit notice by  letter under acknowledgment followed by email and mention your date of notice, effective date of resignation/last day in office, and clause of appointment letter vide which you have tendered notice. Do not leave any room for the company to charge you on any count. If there are many employees in your situation, all of you may unite and be witness to each other.

 

Paresh Bane (Assistant Manager)     13 October 2012

Dear Sir,

 

I have formula of gratuity calculation please confirm whether it is correct or not and if not then please tell me correct formula.  And also tell me gratuity is calculated from date of appointment or from date of confirmation.

formula is as below

Basic salary * 15 / 26 = 'ABC'

ABC * No. of years from the date of appointment. = total gratuity.


Kumar Doab (FIN)     13 October 2012

Date of appointment.

 (((Basic+D.A.)*15)/26)*No. of years of service.

Take Last basic salary+DA.

Submit FormI Under acknowledgment.

Paresh Bane (Assistant Manager)     08 November 2012

 

Dear Sir,

Thanks for your previous advices, I have some doubts in my mind about some things please give your valuable advice.

1)            One of my team member in my company resign from his job with proper 30 days notice period, but our Joint M.D. reject his resignation and told him that company not giving him reliving  letter.  But he don’t want to continue with this company, if any employee give proper notice period and want to leave organization and employer not accept resignation then how will he get his last salary and reliving letter, because the new employer where he will be joining want reliving letter or resignation acceptance.  How can anyone survive with this type of situation?

2)            We got our arrears in the month of September 2012 for our yearly appraisal but still company not giving us appraisal letter and salary slips for 2 months (September 12 and October 12) our Joint M.D. told us if I give you the letter or slips you will leave the job and he don’t want to that but most of us want to leave the job.  Now how can we handle this situation, can any employer stop the salary slips after crediting salary to our account? And can any employer stop giving appraisal letter after giving arrears?

3)            Our HR not having any proper record with them about how may leaves balance of any employee or any other type of records, I take follow up for the same many times but they are not provide it and if any employee wish to resign from the job company not adjust his balance leave in his notice period even if employee having his own records of leave company not accept it,  even our PF slips also not given to us in time still we are not getting our PF slips for the year 10-11 & 11-12 how can we come to know that company is deposited our PF amount to PF account or not? And is there any way to getting PF slips directly from PF office?

Please guide us.

Kumar Doab (FIN)     08 November 2012

Employee should build complete and favorable record while in office and keep copies and POD.

Employee should apply exceptional levels of persuasion, persistence, negotiation, reasoning skills and resolve the matter in his favor while in service. This shall be the quickest and easiest solution. Employer does not marry the employee and employee should also not treat employment as marriage. Employee should deliver performance, remain amiable and firm when situation demand it. Majority of the employers, line management, HR apply tactics, flout norms and are aware that a strong willed and properly informed employee can put his feet on their tail and avoid conflict with such employees.

Subsequent to your resignation or notice of resignation you may submit a carefully structured representation in writing under acknowledgment addressed to the good offices of your appointing authority, MD, Chairman, Company Secretary and narrate all representations made by you so far {mention name, designation, dept, address of all company personnel and give date wise detail of all representations made by you in person, in office, by email, letter etc and highlight the ones made to good offices and line management, HR} and conclude that company has not supplied the letter of increment, salary slips for the months of ………despite your unlimited representations and you have been clamoring for these, fro many months. You may mention that notice period as mentioned in clause number……..in appointment letter dated……issued to you is …….month and thus you have not signed and accepted any change in notice period after the issuance of appointment letter till date however you are being coerced and forced to serve notice period of ……….months which is unfair and the good offices should advice all concerned to impose notice period of one month only and notice pay in lieu of notice period clause as per appointment letter only and thus provide relief to you and that your last day in office as per notice submitted by you is dated….which may be duly recorded.. You may mention that good offices may inform you to whom you should handover the charge and company property { if any} and designated employee should be advised to provide receipt to you on the spot, and you should be supplied payment of your wages and dues by bank DD and documents e.g. acknowledgment of notice of resignation, increment letter, salary slip for the months of …. Immediately, and acceptance of resignation, correct FNF statement { with leave encashment, bonus, performance pay etc}, Form 16, work experience/service certificate, relieving letter, NOC/NDC, PF number, PF accumulation reports of all years….. etc, by your last day in office. You may be assigned duties on routine basis which can be completed up to and within your last day in office i.e. dated……….You may mention that all communications and payments  be supplied to you by redg. post only and postage prepaid{ as purchased from PO} self addressed envelope is enclosed.

You may issue regular reminders. You may submit final resignation by the close of office hours on last day in office.

Salary slip should be ideally signed by both employer and employee.

Company has to keep proper record and maintain record in proper format and forms.

It is good that employee is maintaining his records. If FNF statement is not correct employee may reject to accept it in writing, however employee should obtain FNF statement. Employee may accept the FNF payment but should submit in writing under acknowledgment that FNF statement is incorrect and payment is received under protest.

For PF account slips also employee should raise demand in writing and if employer is not supplying these employees may lodge a complaint with o/o RPFC, and follow up by RTI.

The contact details are available at:

www.epfindia.gov.in

 

Employee can approach o/o Labor commissioner, Inspector under SE Act.

The Inspectors under various enactments can call for records.

SE Act of Delhi is enclosed and you may go thru it.

Company may yield to legal notice of the lawyer or employee may have to agitate in appropriate forum.

Inform the next employer of facts preferably in writing even if by email and explain that your current employer may not issue you salary slip, FNF statement, acknowledgment and acceptance of resignation Form 16, work experience/service certificate, relieving letter, etc, and you can provide only the copy of resignation and its POD and you may be absorbed on the strength of these only. The next employer may do so or ask you to sign an indemnity bond language/draft of which may be supplied by it. The next employer may mention that you shall have to provide the relieving letter, etc within dated…….or your appointment can be terminated. Hence settle all terms beforehand.

The designation alone does not decide employee is a workman or not.

Companies burn extra oil to subdue an employee to not to approach a lawful authority and forgo his rights and that he/she is not a workman as many of the enactments applicable to a workman limit the choice to employer.

Employee can agitate under Payment of Wages Act and approach Wages Inspector for payment of your wages.

If the establishment is covered under SE Act or Factory Act employee can approach Inspector/Chief Inspector under SE Act or Factory Act.

Employee should act smart. Be smart.

 


Attached File : 416045001 delhi shops & establishments act, 1954.pdf downloaded: 232 times

Paresh Bane (Assistant Manager)     24 December 2012

Dear Sir, i want to know about lta (leave travel allowance).. should we ask the amount for lta at time of resignation.l....(If, we resign med of Financial Year) Regards,

Kumar Doab (FIN)     24 December 2012

If LTA is part of CTC and you do not avail, company shall compute it in FNF statement disburses it in FNF settlement and it shall be subjected to tax treatment.

If you wish to avail the exemption, refer to the LTA policy which is to be provided by the concerned personnel in HR. It might be published and made a part of HR policy and kept on employee portal, or provided in service rule book of your company.

LTA can be availed twice for two blocks of journeys in 4 calendar years. Min 3days of PL be applied and approved by approving authority. Journey should be by shortest route. First class AC by train or economy class by air might have been approved in your case by your company. Employee can claim fare for self, spouse, parents, children….

Your company might demand original tickets, boarding pass. In case train and Air connection is not available company might agree for taxi, deluxe bus however may refer to the list of fare available with it.

If your intention is to avail exemptions apply and obtain approval of leave and LTA policy of the company.

Your company may not allow it during notice period or may ask to extend notice period by number of days of leave. Settle everything in advance and in writing.

Valuable advice of learned experts/members is sought.

b.chitharanjan Reddy (qc)     25 December 2012

Dear sir,

 

Regarding gratuity,  I have join in organisation on april 2008.I am resigned in Nov 2012 but served up to Dec 24 th 2012.

can i elgible  for gratuity.

Plz reply me

Regards

 

c

Kumar Doab (FIN)     26 December 2012

@ Mr. Reddy,

Section: 2A
Continuous service.

(2)

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

Take your date of reference as Dec 24th 2012.

Calculate years from date of joining and then check if you have worked for 190/240 days as explained in the provision of the act mentioned above.

Submit FormI { it is must in a case like yours} to the appointing authority/MD of the company under proper acknowledgment, with a covering letter and mention that company should send the payment and reply by redg. post only an a postage prepaid { as purchased from PO} self addressed envelope with postage stamps/value affixed on it for Rs…….is enclosed for sending the payment and reply to you. Company should pay within one month.

FormI is enclosed however you may obtain the version in used from local o/o ALC/DLC.

In case of any difficulty approach a competent and experienced labor consultant/service lawyer and proceed under expert advice.

There are many informative threads initiated by employees on similar query as posted by you. You can access these at;

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.UNrpafLZ1JI

and go thru these.


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