Eligibility Of Gratuity - Pdf Download - CiteHR
Kumaran Praveen
Private Consultant On Labour Laws

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I have joined in a Private company in 31st March 2006 and I resigned from there on 31st August 2015, when I asked for Gratuity the management says you are not in the PF & ESI, so you are not eligible for GRATUITY, is it correct, If I am eligible what will the amount may I get as my last salary is Rs.15000.00. Pl help me.

It is immaterial whether you were or not in PF or ESI, Gratuity act says if employee completed 5 years of continuous service he/she is eligible for gratuity and there is no any other condition so you will be eligible for gratuity. However i cannot tell your gratuity amount because gratuity will be calculated on BASIC + DA not whole salary amount.
Gratuity Calculation: Last Drawn Bascic+Da / 26 days * 15 days * No of years of service.
With Regards
Mr.Thumbs Up

Dear Kannan,
Sh Kumaran has very rightly mentioned that the there is no requirement of PF & ESI membership to became entitle to the payment of gratuity. As per Section 4 of the Payment of Gratuity Act,1972, a person who resigns on completion of FIVE years, is eligible for the payment of gratuity. The formula for calculation has been shown by Sh Kumaran, you can accordingly calculate the same.
BS Kalsi

Thanks for Mr. Kumaran and BS Kalsi for your Guidance.
Let me know if they are denied to whom I have to approch the Authority, is it labour commisioner or civil court or any other authority?

Hi, Please visit near regional labour office and put forward your grievances in writing to Assistant Labour Commissioner and then follow it continously. With Regards Mr.Thumbs Up
Assistant commissioner is the controlling authority for gratuity.
Dear Kannan,

The Payment of Gratuity Rules clearly provides that an employee, who is eligible for payment of gratuity shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer: Within fifteen days of the receipt of an application the employer shall (i) verify the claim of the payment of gratuity and if found admissible on verification, issue a notice in Form 'L to the applicant employee specifying the amount of gratuity payable and fixing a date for payment within thirty days after the date of receipt of the application (ii) If the claim for gratuity is not found admissible, issue a notice in Form 'M' to the applicant employee specifying the reasons why the claim for gratuity is not considered admissible. In either case a copy of the notice shall be endorsed to the controlling authority.

If an employer refuses to accept or entertain an application filed by an employee, the claimant employee may apply in Form 'N' to the controlling authority for issuing directions for the payment of gratuity within ninety days of the refusal or non-entertainment of the appliaction submitted by an employee.

Form 'I' is attached herewith of your necessary action.

BS Kalsi

Attached Files
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File Type: pdf Form-I under PG Rules.pdf (21.7 KB, 105 views)

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