ashish (am) 25 April 2011

payment of gratuity

Dear Sir

I joined my service in a central PSU on 28/4/2006 on five year contract.

My service contract says that

First Year : You will be paid a fixed amount of 16000 for first year.

Second year onwards: You will be given the pay scale of 10750-16750 in E-1 grade and will be entitaled for all the facilities equivelant to E-1 Grade like LTA, HRA, DA, Gratuity etc.

Now I have resigned on 10/3/2011. My pay scale on resignation was 20600-46500 (revised as per Pay commission recomandations)and basic sallary was 22520.

I applied for Gratuity but my employer says that I am not eligible for payment of gratuity as my service contract says that I will be eligible for Gratuity from second year onwards.
They are not counting the first year of my service for the perpous of gratuity so it makes my total continuous service equal to 4 years and hence I am not eligible for the same.

The contract was of 5 years only.

Please advise what to do and if I am eligible for gratuity where should I apply.

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4 Replies

Isaac Gabriel (Advocate) 25 April 2011

Any agreement,contract cannot violate the provisions of the gratuity Act.You are eligible for service gratuity from the date of joining since you have completed the requisite service though not completed full service of five years. Consult a lawyer conversent with labour matters.

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Isaac Gabriel (Advocate) 25 April 2011

Birendra Prasad Singh (Lawyer) 25 April 2011

Mr. Ashish: You are entitled to get the gratuity from the initial date of joining of service. The Payment of Gratuity Act clearly provides that Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. Whereas the contract as arrived between you and your company is concerned the provisions of the Act having overriding effect on any other enactment inconsistance with the provisoins of the Gratuity Act or over any instrument or contract. In view of the above matter, you should approach the Controlling Authority appointed under the Payment of Gratuity Act having the territorial jurisdiction.

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Amarjeet Singh (Clerk) 13 July 2011

Sir I worked as M.I.S Associates in Centre for Computational Engg, Punjab Engg College, Chandigarh

approxmately 14 years and Company started EPF account in july 2000

to OCT 2011

after that i widraw my epf

i want to know that wheather i am aplicable for gratuity if yes then from whom my company or EPF Department

my company is a prrivate compay if there any provision to get gratuity from private firm of contractual employee at consolidated salary

and from

when

the date i join the compay or the date i my EPF account was open