Dear Professionals _ Greetings of the day.

Query regarding Gratuity : One employee eligible for gratuity and without information employee absconded ( Not able to trace out )
Not able to do F&F settlement,
( As per Gratuity act The employer shall arrange to pay the amount of gratuity within thirty days
from the date it becomes payable to the person to whom the gratuity is payable ).

Can you please suggest what is the processor to be followed. ( As per Act ).
Is this any provision to hold this amount in organization.

From India, Bangalore
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
HROne
Content Marketing Strategist

You may take action and deposit the amount with the Controlling Authority under Gratuity Act.
Refer this cite discussion: https://www.citehr.com/628892-paymen...ml#post2465375

From India, Madras
HROne
10

Gratuity -

Before we draw the gratuity payment criteria for absconded employees, we should clear out the air on whether an absconded employee is eligible for it or not.

According to the Payment of Gratuity Act (1972), the Gratuity rules clearly mentions that if an employee has completed more than 5 years of continuous service, he is eligible for both gratuity and leave encashment.

EMPLOYEE'S RIGHT TO GRATUITY

The Gratuity Act, identifying the right of an employee to claim gratuity, leaves no discretion to an employer to complete payment of gratuity dues to an employee at his own sweet will, which has to be mandatorily paid. The Act involves the concerned employer. Any negligence to pay gratuity dues is punishable with imprisonment for not less than six (6) months and which may further be extended to two (2) years.

In short, there might be a few exceptional cases, but the Act leaves no provision to hold the gratuity amount within the organisation.

From India, Noida

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