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Lalita N Bhatt (BDM)     14 April 2012

Pls help- gratuity

Hi All,

I stay at ambernath and have been working with a Pvt Ltd co. in Andheri since May 2005.

I was on maternity leave till 31st Dec 2011 (3 mnths). I was blessed with a baby girl on 17th Nov 2011.

I had sent hard copy as well as soft copy of my resignation to the company on 19th Dec 2011, stating to consider one month's notice period and that I would not be able to join back- since my baby was too young to leave alone .My Director - waived off my notice period considering my situation to stay back with my child.

After a month, I got an opportunity from one of the other co. in Pune to work from home and accepted it.

I am eligible for gratuity from the earlier co.- the co. had prepared the gratuity cheque on 7th Feb 2011, but i was not in Mumbai that time. When I came back- they came to knew that I am working for another compnay and they are not ready to give me the cheque now. They are now asking me to pay them a penalty of 1 month salary in lieu of 1 month notice period and then they would release my gratuity.

My questions are:

1. Is there any rule in Indian Labour Law that one cannot work with the competitors till 6th months, after leaving the company.

2. Is the company in breach of Law for not paying me the gratuity within 30days of submission of Form I.

3. Can I proceed to take a legal action against the co.- if yes, then pls help me how to proceed?

 

Regards,

Lalita Bhatt



Learning

 4 Replies

H. S. Thukral (Lawyer)     14 April 2012

1. No there is no law which can prohibit you from joining a new company if there are no covenants in your earlier appointment. Even such negative promises can be contested.

2. you are eligible for gratuity if you have put in continuous service of five years. 

3. You first apply to your employer for payment of gratuity in a prescribed form which can be found in Payment of Gratuity Rules. If the employer does not pay, you can apply to the authority again in the prescribed form who after verifying your eligibility shall issue a certificate  to revenue official for recovery of the same as land revenue. In the latter , you shall be eligible for interest on gratuity amount from the date you applied for gratuity to your employer. 

Lalita N Bhatt (BDM)     14 April 2012

Thanks Mr. Harbhajan for your reply. The earlier co. has made me signed an agreement at the time of full and final settlement- saying that you cannot work with competitiors till six months. As per my knowledge, there is no such law as per Indian Labour Law- pls correct me if I am wrong.

I have put continuous service of more than six years in the co.

I have applied for gratuity in Form I on 19th Jan 2011- but they are not ready to give me the gratuity cheque.

Please advice if the Form N is the correct form for applying to the Authority.

Thanks once again for your help.

H. S. Thukral (Lawyer)     14 April 2012

It is not the Labour Laws which attract your case but the Indian Contract Act. Any stipulation of restraint in employment with the competitors can be included in the contract. In your case an agreement was entered after you quit the employment and therefore that has no force.  I don't remember the form no.  but you can see it in the Gratuity Act. Since you have applied to the employer long back, you shall be entitled for interest on the gratuity amount. 

Kumar Doab (FIN)     16 April 2012

Learned Mr. Thukral has given valuable advice. Kindly follow it.

You may submit Form I to controlling authority.

You had submitted notice of resignation. Company should have computed gratuity in FNF statement and paid during FNf settlement.

Your director had waived off the notice pay. o you have the waiver in writing e.g. email, letter, copy of FNF statement...?

You have posted company had prepared and issued cheque for gratuity implying company has entered the cheque number i records and is now siutting on the cheque. Do you have any documentary evidence to prove that cheque was prepared and issued?

Mr. Thukral has advicd that as your signatures were obtained on the agreement after you had resigned.

Moreover your signatures were obtained by flaunting FNF statement to you which amounts to coercion.

You may explain the facts to controlling authority whihc may be ALC/DLC in your case.


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