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Please solve my problem for the calculation of Gratuity.
One of our relatives was working in a private school since 01-JUNE-1995 and she got retired on 31-MAY-2016. As per our calculation she's eligible to get the Gratuity for 21 YEARS (from 1995 to 2016). Whereas, the management says that the NEW G.R. regarding Gratuity has come, and according to that THE SERVICES AFTER 2010 ONLY WILL BE TAKEN INTO CONSIDERATION for the calculation of Gratuity. So, according to them, she'll get the Gratuity for 06 YEARS only.
Can anybody tell, what exactly the Act says???

From India, Rajkot

Not heard of any such new instructions or notification under the Payment of Gratuity Act,1972. Therefore, the contention of the management may be based on wrong interpretation of the notification dated 03-04-1997 of the Central Govt in its S.O.1080 issued u/s 1(3)(c) of the Act bringing in the educational institutions employing 10 or more no. of employees as establishments to which the Act is applicable w.e.f the date of notification. It only relates to the claim for gratuity w.e.f the said date of notification and not to the service rendered by the employees eligible for gratuity prior to that date. In other words the employees retired from service prior to that date can not stake any claim for gratuity since the Act applies to such educational institutions only from the date of notification. Same is the situation in respect of payment of gratuity to teachers consequent on the amendment to the term " employee" u/s 2(e) and insertion of a new section 13-A as per the PG(Amendment)Act,2009.

Therefore, she is eligible to claim gratuity from the date of her appointment in 1995 and the date of retirement in 2016.

If the management pays gratuity only as per their calculation, receive it and file a claim for the balance before the Controlling Authority.

From India, Salem
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