Gratuity Payment [Thread 222832]

Hi, Asia,
At the time of employment, the employees with lack of awareness give their names casually. This practice is prominent in the areas where the work-force is ill or semi-literate. But nothing to worry, there are solutions.
Your uncle has to produce his bank pass book with a xerox to the employer and request for a correction letter addressing the area EPFO stating clearly that such 'nickname' and 'realname' is the same person with this pf a/c no. and his pf dues please be settled and and posted in his 'realname' a/c (Certified- Employer's sign. & seal). In addition to the statuary withdrawl forms, you have to submit this letter to the pf authorities. Best of luck (Suresh)

Gratuity Calculation = Last drawan(Basic+DA)*15*NO.OF Years/26
15days wages for every completed year of service
26 is no.of working days.
Gratuity is not Taxable.
Charvaka Reddy

Hi akesiss
If any employer refuse to make payment of gratuity to any employee who had completed a term of 5 years of continuous service with him / organisation, it tent-amount to punishment.
For this you go through Section 9 'PENALTIES"
An employer avoiding any payment to be made under this Act, 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 shall not be less than three to six months and which may be extended to two years and also with a fine which shall be Rs.10000.00 and may be extended to Rs.20000.00
Mohan Rao
Manager HR

The gratuity payable to an employee may be wholly or partially forfeited :-
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

The gratuity payable to an employee may be wholly or partially forfeited-
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

Hi,
If the employer refuses to give the gratuity, then what is the next step that has to be taken?

Dear
Then you are to file a claim before the Controlling Authority under The Payment of Gratuity Act of the area. You can also file a complaint before the law enforcing agency before filing the claim case.
With Regards,
R.N.Khola

Gratuity Payment would entail continuous service for 5 years which in case of onsite assignment becomes a bit of a tricky issue.
The position is: if the person is on a social visit pass/business visa and earning salary back in India from the Indian company, then it is considered as a continuous service.
The moment this consultant starts working on a work permit - which is usually the case for long assignments (typically more than 6 months) then technically there is a severance from the Indian payroll (during which his/her Indian salary stops therefore, PF stops, therefore gratuity stops and probably the med insurance will also stop).
This is what my experience says....
A Chakraborty

Hai
He has completed five years of service. Then there is no question of eligibility.
Yes he is eligible for Gratuity.
Mano Kavin

Dear Sara,
Gratuity
Any empoloyee who has been on the rolls of the Co. and has put in 5 years of continuous service is entitled to receive Gratuity.
It does not matter that someone has been on duty On Site.
Vasant Nair
09717726667