Hi Team,
I want to clear a doubt regardining the applicant of gratuity. One of our exemployee who has completed 5 years at the time of resignation has forwarded her request for gratuity via email and informed us that due to some medical reason she will not be able to come in person to apply for the same. She will authorise her some to collect the same.
but our Company police says that the employees eligible for gratuity need to come in person to our office and complete the formality for the payment of gratuity. Our polciy doesnt permit any third person for this.
I would like to know as per law whether a thrid party ,if auhtorised can complete the formality of Payment of gratuity onbehalf of an employee unless otherthan in case of death.
Seniors kindly advice.
Regards,
Anna
From India, Kochi
I want to clear a doubt regardining the applicant of gratuity. One of our exemployee who has completed 5 years at the time of resignation has forwarded her request for gratuity via email and informed us that due to some medical reason she will not be able to come in person to apply for the same. She will authorise her some to collect the same.
but our Company police says that the employees eligible for gratuity need to come in person to our office and complete the formality for the payment of gratuity. Our polciy doesnt permit any third person for this.
I would like to know as per law whether a thrid party ,if auhtorised can complete the formality of Payment of gratuity onbehalf of an employee unless otherthan in case of death.
Seniors kindly advice.
Regards,
Anna
From India, Kochi
No, only in the case of death of the employee the nominee of the deceased can claim gratuity and in other cases whatsoever, such type of practice is not allowed. The concern employee is required to fulfill all formalities and is required to make a written request for claiming gratuity amount from your company.
Regards
From India, Mumbai
114Regards
From India, Mumbai
The Payment of Gratuity Act does not say that beneficiary should come in person to complete the formalities.
Its organization's policy dependent but I think if the beneficiary has some very genuine and valid reason then the organization should take care of that and can make the payment (handing over the a/c payee cheque) to any authorized person. Yes authorization needs to be proper.
If an employee has not claimed the grauity in Form I, it does not mean that Employer is absolved from his reponsibility to pay gratuity. Employer is bound to make the payment within the specified time prescribed in the act. Even the signed and scanned copy of Form I sent through mail is enough to process the application.
regards,
Kamal
From India, Pune
Its organization's policy dependent but I think if the beneficiary has some very genuine and valid reason then the organization should take care of that and can make the payment (handing over the a/c payee cheque) to any authorized person. Yes authorization needs to be proper.
If an employee has not claimed the grauity in Form I, it does not mean that Employer is absolved from his reponsibility to pay gratuity. Employer is bound to make the payment within the specified time prescribed in the act. Even the signed and scanned copy of Form I sent through mail is enough to process the application.
regards,
Kamal
From India, Pune
Yadav Sir,
Thanks for your immediate reply. One more doubt i would like to clarify, if she goes for legal case stating that company has not considered her medical condidtion due to which she is unable to travel to office and complete the formalities, in this scenario what will be the legal stand.
Regards,
Anna
From India, Kochi
Thanks for your immediate reply. One more doubt i would like to clarify, if she goes for legal case stating that company has not considered her medical condidtion due to which she is unable to travel to office and complete the formalities, in this scenario what will be the legal stand.
Regards,
Anna
From India, Kochi
Dear Mr. R B Yadav,
Do you think it is legal to delay or deny someone of grauity benefits on the ground that employee concern is not coming in person to fulfil the formalities. Plz do not give confusing and wrong advice. Your advice may create future legal issues to the employer.
I would suggest to plz go through the Payment of Grauity Act properly and also go through several case decisions/laws of High courts and Supreme court on related matters.
Gratuity benefit is a statutory and protected right of an employee and can not be mixed up or manipulated with your organizations policies.
It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. Even when the employee is untraceable, it is the duty of the employer to trace him out. If the employer fails to trace him out, he should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act failing which the employer has to pay interest @ 12% from the date on which gratuity became due, ie, 30 days of employee's leaving.
regards,
Kamal P
From India, Pune
Do you think it is legal to delay or deny someone of grauity benefits on the ground that employee concern is not coming in person to fulfil the formalities. Plz do not give confusing and wrong advice. Your advice may create future legal issues to the employer.
I would suggest to plz go through the Payment of Grauity Act properly and also go through several case decisions/laws of High courts and Supreme court on related matters.
Gratuity benefit is a statutory and protected right of an employee and can not be mixed up or manipulated with your organizations policies.
It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. Even when the employee is untraceable, it is the duty of the employer to trace him out. If the employer fails to trace him out, he should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act failing which the employer has to pay interest @ 12% from the date on which gratuity became due, ie, 30 days of employee's leaving.
regards,
Kamal P
From India, Pune
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc