I have completed 4 years 11 months and 7 days of continued service in a private company and then i joined a new company. But the company did not give gratuity to me and told me that I have not completed 5 years hence I was not entitled for gratuity. I also thought so and did not raise voice. Its been a year now and I came to know from my friends that gratuity can be claimed if somebody completes 4 years 6months of continued service in an organization which works for 5 days a week.
After knowing this I emailed the previous company by mentioning the rule, they did not reply for few days and after sending continuous reminder they replied me on email and the HR wanted to discuss this thing on phone. But I replied on the their mail stating that whatever is the reason for denial of gratuity they need to reply on my email. But they have not replied yet. I live in Noida. Can you please guide me how to proceed further to get my gratuity? Thanks in advance

From India, Noida
Sr.manager - Hr&admin
Med. Superintendent

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Dear Raj,,
As per the duration you have mentioned you are seem to be eligible for gratuity payment.
You may send them Legal show cause notice asking them why gratuity been denied to them and why non compliance should not not be raised to statutory authorities followed by recovery proceeding .
Thanks And Regards,
Compliance First

From India, Pune

Thank you very much for your prompt reply. Most of the sites does not reply so promptly.
Yesterday got a mail from company that they have agreed to pay my gratuity. Now that I have raised my voice they have agreed to pay the gratuity so easily. They have tried to take advantage of ignorant employee and after raising voice they have easily agreed. For complete 1 year i used to think that i could have waited for 25 more days to complete my 5 years to get the gratuity. Now i want to pay them a price for this by paying me penalty as per gratuity act. Can you please guide me in this that how much provision of penalty is there in gratuity act.
Also can you please guide me in calculating the gratuity amount.
My basic is 23300 and I dont have any DA component.

From India, Noida

You are eligible for Gratuity amount of Rs.67,212/- @ 5 years service.
Section 7(3A) of Payment of Gratuity Act 1972 says that for delay in payment beyond 30 days from the date it becomes payable, employer is required to pay simple interest at the rates notified by the government unless the delay is due to fault of the employee
If an employer fails to pay due gratuity even after the receipt of application in Form-I, the claimant employee or his nominee or legal heir, may within 9 days of the occurrence of the cause for the application, should apply to the Controlling Authority for issuing direction to the employer under Section 7(4) of the Act, to release the amount of gratuity payable.
After conducting the enquiry as prescribed, the Controlling Authority will determine the amount payable and direct the employer to make the payment.
Penalties under The Payment of Gratuity Act ;
Section 9 (1) of the Act states – Whoever, for the purpose of avoiding any payment to be made under this Act or enabling any other person to avoid such payment of gratuity, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs 1000/-, or with both.
An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made thereunder, shall be punishable with imprisonment for a term which may extend to 1 year, or with fine which may extend to Rs 1000/-, or with both.
However now that your employer had agreed to make the payment close it in a peaceable manner.

From India, Madras

Dear Friend,
One is eligible for gratuity on completion of 5 years conteneous service. Please check whether you have 5 year conteneous service. If yes, then make an application to your previous employer; The following points given for your information to understand the matter;
Section 7(3) casts a duty on employers to determine the amount of Gratuity and give a notice in writing to the person to whom Gratuity is payable and also to the Controlling Authority specifying the amount of Gratuity so determined. Section 7(3) provides for payment of Gratuity within 30 days from the date on which it becomes payable to the concerned person. Section 7(3A) provides for interest if Gratuity is not paid as provided in sub section 3 of Section 7.
The provision in Section 7(1) cannot be construed as a leverage to deny Gratuity to the employee on the specious plea that the person has not applied for Gratuity as provided under Section 7(1) in Form I.
The relevant legal provisions are stated herein below –
Section 7 (1) of the Gratuity Act states that an employee who is eligible for payment of gratuity under the Act, shall apply in writing to the employer for payment of such Gratuity amount.
Rule 7(1) of the Payment of Gratuity Rules, 1972 states that the above application shall be made ordinarily within 30 days from the date the gratuity became payable, in Form ‘I’ to the employer.
Further, Section 7(2) of the Act of 1972 states that the employer, whether or not the above application has been made, must determine the amount of Gratuity payable and give a notice in writing to the concerned employee and Controlling Authority informing them about such amount.
Rule 8 of the Payment of Gratuity Rules, 1972, states that within 15 days of receipt of application under Rule 7, the employer must give a notice under ‘Form L’ if the claim is found admissible. If the claim for Gratuity is not found admissible, the employer shall issue a notice under ‘Form M’ to the employee specifying the reasons why the claim for Gratuity is considered not admissible.
Section 7(3) of the Act of 1972 states that the employer shall pay the amount of Gratuity so determined, within 30 days from the date it becomes payable to the concerned employee.
Rule 10 of the Payment of Gratuity Rules, 1972 provides that a claimant employee may apply to the controlling authority in writing in ‘Form N’, if the employer either refuses to accept a nomination to entertain an application under Rule 7(1), or having received an application under Rule 7 fails to issue any notice as required under Rule 8. The Controlling Authority may accept any application after the expiry of the specified period for submission of such application, if sufficient cause is shown by the applicant. The Hon’ble Supreme Court in the matter of State of Kerala V/s Padmanabhan Iyer, 1985 has held that delayed payment of Gratuity must be considered with the penalty of interest as the current market rate till actual payment.

From India, Mumbai

I'm surprised your company gave in so quickly. Since you have not 'completed 5 years of service, you are not eligible for gratuity. Now that you are getting paid, don't try to rake up a legal issue, it will backfire against you.
From India, Kolkata

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