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shibu thomas (DGM SALES )     31 May 2013

Gratuity

Hi all 

I havepresently changed my job,  I had joined my previous organization on 14th July 2008 & my last working day with them was 8th Feb 2013. to be more clear the date are as below :

DATE OF JOINING : 14TH JULY 2008

DATE OF LEAVING : 8TH FEB.2013 

I would like to know whether i will be eligible for Gratuity , can someone pelase help meout with this.

Thanks 

Shibu Thomas

 

 



Learning

 5 Replies

Adv k . mahesh (advocate)     31 May 2013

calculate urself i had given the correct procedure 

 

 

if your employed in other high-paced jobs, you

would probably give the above answer. Most people think it is 5 CALENDAR 

years ( or 365 * 5 days exact)


But the correct answer is: 


4 years 8 months 

(or 240 days  to be precise for organizations working 6 days a week)

or

4 years 190 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 )


Most software engineers (or professionals employed in other high-paced jobs) have 

very limited knowledge of Gratuity laws – the reason is simple – very few professionals

actually stay for around 5 years in the same job :)


But if you are like me who have managed to stay long in the same company, and more

importantly been on the edge of 5 years of service (I stayed in the same company for

4 years 10 months 7 days), you probably would have gone deeper in to the rules of Gratuity

Act and asked yourself – does losing a few months out of 5 CALENDAR years actually

deprive you of your hard-earned Gratuity (which is, in most cases shown as a part

of your CTC) ?


When I found myself in this situation, I did a thorough research including talking to friends,

seniors, reading HR forums on internet, talking to lawyers and finally – reading the Gratuity Act myself.


What I found was surprising – most people – even professionals in the field – were unaware 

of what the Gratuity Act actually says.

I managed to get an exact copy of the  Gratuity Act  and its attached rules from 


Gratuity Act 

https://labour.nic.in/clc/PaymentofGratuityAct.doc


and


Rules of Payment Of Gratuity

https://labour.gov.in/act/acts/RulesofPaymentOfGratuity.doc

Kumar Doab (FIN)     31 May 2013

 

As explained by Mr. Mahesh

 

Refer to:

Section: 2A
Continuous service.

(2) (a) (i) (ii):

 

Count 4 years from DOJ.

 

Then count 190/240 days upto date of reference i.e. your last day in office.

If eligible submit FormI preferably by redg. post( avoid courier/speed post) to company and demand acknolwedgment.


Attached File : 996170986 paymentofgratuityact(1).doc downloaded: 165 times

Ashima (hr)     01 June 2013

hi All

Sir i joined travel agency which is a pvt ltd firm on 29th jan 2007 and left on 30 th sep 2011,plz suggest am i eligalbe for gratutity or not as i applied for the same but company is denying plz suugest 

 

Thanks

Ashima

97171989667

JITENDER KUMAR (administration)     01 June 2013

sir

 

i joined a advertising comapny in 22/01/2006 & resigned on 15/05/2013. but i dont get any joinning letter or any offer letter.

but my salary is given  bya/c payee cq. only till april 2013. when i joined my company their are about 12 workers are working. 

also this is proprietership company. my last salary was rs. 20000 basic with 2200 ta & 2000 other allownces(.LIke Mobile &vehcle services). total salary is 24200/-

i am eligible to ask for gratuity. even i dont have resigned in written.

so tell me how this will calculated or am i eligible

Kumar Doab (FIN)     01 June 2013

@ Ashima:

Your query is replied at another thread:

https://www.lawyersclubindia.com/forum/details.asp?mod_id=28768&offset=14#.UaoTGNKAqWM

This thread is highly informative. You can calculate tenure of your service and eligibility and submit FormI.

 

 

@ Jitender Kumar:

You are in which state and HO/Redg. office of the company is in which state?

Many of the  ( name of the state) Shops and Establishments Act lay down that :

 

e.g; Delhi Shops and Establishments Act :

34.  Employer  to  furnish  letters  of  appointment  to  employees.—

COMMENTS

The object of the enactment is to furnish an accurate proof of employment to an employed person and for this object in view, the Legislature provided that the letter of appointment given by the employer to the person employed should contain the following particulars:—

………………………………………

(5)  Date of Appointment.

(6)  Rate of wages or salary.

Failure  to  issue  appointment  letters  under  section  34  of  the  Act  to  the  employee

amounts to ‘unfair labour practice’ resorted to deprive them of the benefits which accrue

to  them  due  to  the  length  of  their  service;  Bharat  Mudranalaya  v.  Workmen,  Delhi Gazette, dated 7-5-1970 (IT).

 

If you have resigned, resign by issuing notice of resignation with some notice as uitable to you…….in writing under proper acknowledgment (preferably by redg. post and avoid sped post/courier), and demand

and demand the acknowledgment of notice/acceptance of resignation, correct FNF statement, FNF dues, Form 16 as per correct FNF statement, PF number and account slips for whole period of employment, ESIC card ( if eligible), salary slips for the month of ………….., work experience/service certificate, relieving letter, acknowledgment of company property/handing over of charge, etc  and mention that these should be supplied to within office hours on last day in office.

 

 The employee who has submitted notice of resignation has thus notified the employer of his date of retirement.

Employee can submit FormI 1month before his date of retirement.

You may submit FormI for payment of gratuity under proper acknowledgment.

 

The notice of resignation is mentioned in certified standing orders/model standing orders/IESO Act/ Shops and Establishments Act…………….

As no appointment letter is issued to you, you can claim that thee was no such condition issued to you and accepted by you.

However if you issue some notice you shall display character, sincerity and thus employer can not level charge for having caused loss with abrupt termination and lay a claim…………..

On your last day in office/effective date of resignation/expiry of notice you may submit final resignation under proper acknowledgment preferably by redg. post.

 

Salary slip should be issued, in compliance to:

 

Minimum Wages Central Rules:

26. Form of registers and records: sub section 1-4

Payment of Wages Act:

13A. Maintenance of registers and records.

 

 

If without resignation on record, you stop attending to office a shrude employer may level

Charges of : abscondment, abandonment, having caused loss etc…………….with or without supplying you any communication in writing. However it may inset communication in its files in office.

 You may consult elders in the family, trade union leaders, competent and experienced labor consultant/service lawyer as ap, show all of your documents, give inputs in person, understand the merits and proceed under expert advice of your lawyer.

 

 

 

 


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