Mmrao
Hr Admn Legal
Neharan
Manager - Hr
Milanjanuary
Gm-hr & Training
Schakraborty_69
Central Excise And Hr
+3 Others

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Dear All,
I have workd in my last Co. for the period from 10th Jul'2000 to 31st Mar'2010. After leaving the Co. w.e.f 1st April'2010 I have have got Full & final settlement payment as wel PF also. But till now I didn't get Gratuity payment. I have sent a mail claiming Gratuity payment but they didn't respond.
Pls guide me as how to get my gratuity payment.
Thanks & Regards
Avijit

Hi Avijit,
You are entitled to Gratuity and should have been paid along with your full & final payment. If your past employer does not pay heed to your mails then approach the Labour Officer - cum- Reconciliation Officer with written complaint who has jurisdiction over your past employer.
Thanks & Regards
S. Chakraborty

Dear Avijit

In similar question a thread shared by one of our senior moderator Mr.Madhu T.K wrote the following ,as I am not able to share it in link , so copied for your knowledge ,hope it will resolve ur issue.

Gratuity is an amount payable by the employer while an employee leaves the establishment after serving for at least five years. Therefore, it cannot be claimed while you are in service. On your leaving if the employer does not pay it you can recover it with interest by giving a request to the Labour authorities.

Gratuity will be equal to 15 days salary at the time of leaving the company for every completed year of service. Any fraction of a year for more than six months shall be taken as one year and less than six months shall be ignored while calculating the amount of gratuity. That means if you have worked for six years, six months and a day, you will get gratuity for seven years. If your salary (Basic + DA) at the time of leaving is Rs 26000 then your gratuity will be Rs 105000 calculated as 26000 /26 days (to get daily salary) X 15 days X 7 (years of service)

Payment of gratuity is mandatory and it should be paid to the employee who is entitled to get it even if the employee has not claimed it. That means it is the responsibility of the employer to trace the employee and pay him.[/B]

regards

Mitali

Dear Avijit,

You are eligible for gratuity. You can send a letter to your company(Through registered post) and next step you can go to the Inspector of labour and give a complaint.

Gratuity can be denied only on below cases

Forfeiture of Gratuity

(1) The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused;

(2) The gratuity payable to an employee shall be wholly forfeited-

(a) If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or

(b) If the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.[Section 4(6)].

Else your company has got an exemption by providing an better scheme which is more favorable benefits than the gratuity scheme.

Section 5 : Power to exempt

(1) The appropriate Government may, by notification, and subject to such conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate Government, the employees in such establish¬ment, factory, mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

(2) The appropriate. Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employee or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

(3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to prejudicially affect the interests of any person.

Dear Avijit
On receipt of your application for gratuity, the employer shall inform you about the payment or non payment of gratuity within 15 days of receipt of your application as per the Act and thereafter shall arrange to pay the same within 30 days from the date it becomes payable. Now you can send a final letter calling up on them to pay your gratuity within 7 days(the time may bestipulated by you), failing which you will be free to pursue the remedies availbale to you under the Act.If they still do not respond to your letter, you can file an application before the Controlling Authority under the gratuity Act who is normally the Asst Commissioner of Labour (State).
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234

Kindly let me know if the company is not deducting any Gratuity from the employees CTC since his/ her joining, then too the employer is liable to pay gratuity to the employee who leaves the company after serving more than 5 years of services
Neha Singh

Dear neha,
Today many company show gratuity amount in the TCTC calculation.
Even it is not mentioned the company has to pay gratuity to the employees who had completed minimum 5 yrs of service in same company.

Dear Neha, After completion of 5 years, you are entitled to Gratuity. CTC has nothing to do. Regards S. Chakraborty
On one hand you are quoting it as Salary and within brackets you mentioned as (Basic + DA). Here, salary means only basic + DA ?
Or entire CTC? What is the basis for calculation for gratuity? Could you pls help?

Dear MMRAO,
Yes it is Basic + DA only. No other allowances like HRA, TA, Spl Allowance, Medical Allowance will be taken.
As per Gratuity act it is mentioned cleared as Basic wages only.
Also when a company calculates the TCTC the gratuity amount is derived from Basic salary only.
Gratuity is calculated as below
(Last Drawn Basic+DA) / 26(No. of days in the month)*15(Half of the month)* N(No. of years)
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned: In case of a monthly rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying quotient by fifteen.


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