TRIBHUVAN PUROHIT (ACCOUNTANT) 02 January 2022

Gratuity dispute

Respected Sir,

My uncle was working with a Proprietary concern since June 1984. In 1996 the employer formed a new private limited company and transferred his name in private firms payroll without paying any gratuity. whatever the scheme of arrangement while forming private limited, my uncle is not aware of.

My Uncle faced heart attack and gone through surgery, after few months of joining service back covid pandemic arrived wherein as per government guidelines he was not allowed to visit office and later he decided to settle at Native Place

When my uncle asked for the gratuity the employer denied to pay him gratuity for the period 1984 to 1996 for which my uncle has absolute right

Requesting you to provide us with perfect reply/case law which we can send the employer to get the hard earned money from the employer

Regards

Tribhuvan

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5 Replies

G.L.N. Prasad (Retired employee.) 03 January 2022

Please contact a local advocate who is an expert in such labor matters after studying the eligibility of such gratuity in proprietorship concern, he may suggest you as to whether the previous employer is liable to pay such Fratuity, based on other evidence.. But raising the issue after 25+ years is a disadvantage, as the employment conditions while taking up a job in a private company is important.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 03 January 2022

Arrange to give a legal notice through a lawyer for gratuity claim. If you have been denied gratuity payment by your employer, you can file a complaint under Section 8 of the act, against the company. The controlling authority, on hearing both sides, if satisfied with the employee's stance, can direct the employer to pay the gratuity that is due along with the interest on it.

P. Venu (Advocate) 03 January 2022

Is it the case that uncle has recived the gratuity for the period from 1996?

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TRIBHUVAN PUROHIT (ACCOUNTANT) 03 January 2022

Yes,

My uncle not received any gratuity, & as mentioned in my query the earlier proprietor is now a Director in Private Limited, the name was shifted on Private Limited Payroll without paying any gratuity amount of earlier period

Dr J C Vashista (Advocate) 04 January 2022

Provisions of section 3 of the Payment of Gratuity Act, 1972 provide:

(3) It shall apply to -

(a) every factory, mine, oilfield, plantation, port and railway company;

(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.

(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten]

Accordingly your uncle is not covered for gratuity.