Claim gratuity money

I have worked for 10 year in my previous company. I had left the company with one month notice. At the time of joining I had not signed any contract neither it is displayed in my offer letter(i.e. notice of 3 months) notice. Although they had sent a general mail notice to all employees for implementing a 3 months notice after 7 years of my service. Not received my gratuity payment from my previous company since 1 year. I have made an application for the same which they denied asking to settle the company's due ( 2 month notice period salary). Can I claim my gratuity money and how? Please suggest.

Asked on December 23, 2016 in No Category.
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1 Answer(s)

Dear Sir/madam,

As far as the concept of gratuity is concerned, a person is entitled to the benefit of gratuity if he/she renders at least five years of service. In this particular case, you served for 10 years which fulfils the pre-requisite criteria. Also, Section 4 of the Payment of Gratuity act 1972, makes you an eligible employee for gaining the benefit of gratuity.

There is a Form ’I’ in the prescribed format, as per the rule 7 of the Payment of Gratuity act 1972. An application with this form can be made to the employer seeking the due payment of gratuity.

The act through section 8 further says that in case of a dispute between the employer and the employee regarding gratuity, the employee can file a claim before the “controlling authority” (in the office of Labour Commissioner) stating the grievance. As per the directions of the authority, the employer has to deposit the amount of gratuity alongwith interest to the controlling authority.

There is a forfeiture clause also, which helps the employer in not allowing the employee – the benefit of gratuity. Such things are made transparent through the service rules of the company. Generally, on part of a misconduct by the employee, the employer reserves the right to cancel the gratuity. Also, when the employee is terminated for constituting an offence involving moral turpitude.

In a situation where the employee himself have left the job by way of resignation and not being terminated by the employer on grounds of misconduct etc., the benefit of gratuity is an employee’s right and cannot be taken away by the employer. However, there could be a condition posed by the employer as per the service rules of the company, stating that the gratuity might only be released as and when the salary of those 2 months be deposited.

Further, if the above steps don’t work, then a civil suit may be instituted in this regard.

Incase you are facing any difficulty pursuing the above advice or want any help in filing the case. Please follow the link below

Answered on December 28, 2016.
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