How Can I Claim My Gratuity After Resigning Voluntarily from an MNC?

I was working for an MNC in Chennai from January 2002 to June 2009, and I was forced to resign, which I did. As per HR, I was promised to be given three months' salary and all benefits. However, currently, the company is denying my gratuity, LTA, and other benefits. Since I was not terminated by the company and I resigned voluntarily, what is the solution to get my gratuity? Kindly help.

Dear Balkishanlal,

There are two things you have to understand in this case.

First Point of Consideration

First, if they terminate you, then your entire career will become a big question mark. But you will get all the benefits, including notice pay and other monetary benefits.

Second Point of Consideration

Second, if you submit the resignation letter, you cannot claim anything except your PF and leave encashment as per the company policy.

Do you have any proof to prove in court that you have been forced by the management to submit the resignation letter?

Have you mentioned in the resignation letter that "As per your advice, I am submitting my resignation letter" or words to that effect? If so, you can go to court.

Now, before approaching the court of law, please send a letter to your old company stating, "As advised by you, I have submitted my resignation letter. Please release my 3 months' notice, LTA, gratuity, and other benefits as per my eligibility."

If they give some reply, then you can keep the same as your record, and you can knock on the doors of the Court of Law.

With warm regards,

S. Bhaskar
[Phone Number Removed For Privacy Reasons]

Dear Mr. Bhaskar,

Thank you for writing. Sir, if I resign on my own, how can a company refuse to give me my benefits like notice pay, gratuity, and LTA as per the law to which I was entitled?

Since they couldn't terminate me due to insufficient proof of any wrongdoing (this was mentioned by one of the senior board personnel), I was informally asked to submit my resignation. I complied as I was not keen on continuing in a company that viewed me with suspicion, especially when I have other job offers in hand.

In this circumstance, how can they refuse my dues? After my resignation, when I contacted HR, I was informed that they cannot give me any dues since I was relieved on ethical grounds. I could not accept this since I had resigned on my own, and they do not have any proof against me.

What should I do now?

Thank you.

As you have submitted the resignation, you are not eligible to receive any benefits except for your leave encashment and PF. In turn, they can ask you for payment of 3 months' salary. Only then will they provide you with the relieving letter.

Approach the management and HR department with a friendly and confident demeanor. Do not show any ill feelings on your face. Explain your problem and convey the inconvenience caused by the unethical attitude softly to the management and HR. These are the only actions that can be taken in the present scenario. Even if you go to court, the case will not withstand.

With warm regards,

S. Bhaskar
[Phone Number Removed For Privacy Reasons]

Dear Balkishanlal, you have resigned from your job after completing 6 years of service, and you can indeed claim your gratuity and other benefits. Gratuity is payable to an employee who resigns from the job after completing 5 years of service. You have all the rights to claim these benefits, so please approach the labor officer in your region at the earliest.

Dear Bhaskar,

There is nothing like gratuity that can be denied for the reason of resignation. A person can claim gratuity only after completion of 5 years of continuous service and after resignation. Please do refer to the Gratuity Act 1972.

*Corrected spelling, grammar, punctuation, and formatting as per the original content provided.*

Regards,
[Name Removed For Privacy Reasons]

Thank you, Shreekanth, for your information. I will note this point. However, in the case of resignation, the Notice Pay and Retrenchment Compensation will not be eligible. I intended to convey the same but mistakenly interpreted it as Gratuity, for which I regret.

With warm regards,
S. Bhaskar
[Phone Number Removed For Privacy Reasons]

Understanding Gratuity and Notice Pay

Each act has to be viewed individually, and confusion arises only when you club acts together. For claiming gratuity under The Payment of Gratuity Act, the condition is that one should have completed 5 years of continuous service. After 5 years, more than six months have to be construed as one year. The last drawn salary/wages is the one that was drawn; that is the rate of pay. The month for arriving at the salary rate is to be divided by 26 and not by 22 or 30.

When you are voluntarily offering to resign, where is the question of notice pay by the employer? In fact, if you desire to get relieved early, you need to pay the notice pay or serve the entire notice period as per the service contract or terms & conditions as enumerated in the appointment letter.