Gratuity Dispute: Can I Take Legal Action Against My Former Employer?

Dear All Members,

If somebody can guide me regarding my Gratuity related issue?

I worked for a limited company for 9.5 years. In the appointment letter, they have mentioned that you are eligible for all company's benefits but not mentioned words like PF & Gratuity.

Now, when I resigned from the company and requested for the gratuity, they say that they do not pay any.

What are the rules? As per my knowledge, even a shopkeeper has to pay gratuity to the salesmen if they have worked for more than 5 years. However, I was working in a Limited company where more than 500 people are employed.

Can I file a suit against the company? Where do I have to file the suit to get my gratuity?

Please help>>>

Dear Akshit,

It is unclear to us why the company is not paying gratuity to its employees. If the Act is applicable to the company, they must pay gratuity regardless of whether it is written in the appointment letter or not. Since the company has refused to pay gratuity, you should approach the Labour Office in your area. First, file a complaint for non-payment of gratuity with the Labour Inspector/Labour Enforcement Officer in the area. If the matter is not resolved at this level, you should file a claim case with the Controlling Authority under the Payment of Gratuity Act, 1972. The Inspector will guide you on which officer of the labour department is authorized to hear and decide such cases.

Regards,
R.N.Khola

Even if it has not been specifically stated in your Appointment Letter, you are very much entitled to receive Gratuity. If you have worked for 9 years and six months, then you are entitled to receive Gratuity for 10 years, subject to the then-defined ceiling of 3.5 Lacs.

To begin with, send a written request to your previous employer, under Registered Post, asking for payment of your Gratuity. In case they do not comply, you could make your representation to the concerned authorities constituted under the Payment of Gratuity Act.

Best Wishes,
Vasant Nair

Gratuity Calculation Clarification

For gratuity calculation, a service period of 9 years and six months will be rounded down to 9 years. To be rounded up, the fraction should be more than six months.

Regards,
Abbas P.S