LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Developer (DEVELOPER)     29 May 2018

Gratuity amount

Hello Team,

I am working in a well known IT company since December,2014. The company deducted some amount as a gratuity amount from my salary. Now someone is teasing me for my leaving standard. I want to leave the company, But as per government rules about gratuity amount that no one can withdrawal that amount until completing at least 5 years service in the same company. So I want to know that, Is there some possibilities to get my gratuity amount before leaving the 5 years service in that company?

 

 

Thanks 



Learning

 5 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     29 May 2018

It requires a minimum service of 5 years.

Kumar Doab (FIN)     30 May 2018

IT/ITeS companies are covered by the Shops & Estbs Act of the state and Payment of Gratuity Act, 1972.

Payment of Gratuity is upon separation from employer-employee relationship.

 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?

While you have clarified some you may post how many persons are employed in the establishment.

Kumar Doab (FIN)     30 May 2018

You may go thru;

Payment of Gratuity Act,1972; 1,2A, 4(5, 6) https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972

https://labour.gov.in/sites/default/files/ThePaymentofGratuityRules.pdf

 

and rules framed in the state e.g;

The Payment of Gratuity (Maharashtra) Rules, 1972.

https://esipf.com/labour-law/The%20Gratuity%20Act.pdf

Kumar Doab (FIN)     30 May 2018

 

As on date assuming that you joined w.e.f  01-12-2014 you seem to have worked for 29D05M03Y

If the employer has provided with better terms of Gratuity as per Sec; 4(5) of Payment of Gratuity Act, 1972 then relate with terms of the contract/agreement offered to you and check if you are eligible as per (better) terms of Gratuity, offered by employer .

Gratuity is without any cost to employee and NO money should be deducted from wages of employee.

Has employer shown the deductions in monthly salary slips issued to you?

Or if you have evidence that amount equivalent to Gratuity component was deducted from your wages/salary. Gratuity is average 15days of annual salary ( Basic+DA) @ last drawn. 

If yes, you may claim the amount with interest!

 

Gratuity= {(Basic+DA)/26*15*No. of years in service} (Basic +DA) as per last drawn salary

After 5 calendar years; No of years=1 if employee has worked >6 months ………..and ……………….. No of years=0 if employee has worked <6 months…

 

Gratuity: Employee that is eligible may; Just write under proper acknowledgment to designated official e.g; HR head/designated HR personnel and if required to good offices of appointing authority, MD, CEO……………..that ‘ Notice of Determination of Gratuity’, payment o Gratuity, requisite forms if any be supplied on LWD……….. or you can also write after LWD or after getting acknowledgment and/or acceptance of resignation, reliving docs etc  If employer dos not tender payment within 30days from LWD then IT has to tender interest @10%pa.

Avoid committing any act leading (alleged) loss that can be established for forfeiture of Gratuity.

 

In case you have posted wrongly about deduction from salary but IT is CTC then you may resolve by applying your own skills ; persuasion, persistence, negotiations, reasoning…


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register