How Can I Ensure My Former Employer Pays the Gratuity I'm Legally Owed?

I have been a permanent employee in a company called Great Fortune Infotech Private Limited, located at B-191 Okhla Industrial Area Phase 1, New Delhi 110020 since July 23, 2001. My services were recently terminated with one month's notice on Feb 01, 2011. The company, which has more than 25 employees, cited loss of clients as the reason for terminating all employees.

Now the company is not ready to pay gratuity, stating that since it is a private limited company and gratuity was not mentioned in the employment letter. My understanding is that gratuity is to be paid by all companies regardless of whether it is mentioned in the employment letter or not, whether private or public limited.

Steps to Ensure Gratuity Payment

Please advise me on the steps I need to take in order to ensure that the company pays my gratuity amount as specified by law.

Thank you.

Regards

Irrespective of losses, a company needs to make provisions for the payment of gratuity in their books of account. Please approach the local labor office or write a claim letter with a cc to the labor commissioner.

Regards.

Even I am on hold for the same matter with a Delhi-based company. There have been lots of recent posts on this topic that we discussed briefly. We need to have proof of employment with them.

Thank you.

I have both the confirmation letter and termination letter (though the termination letter is through email). So, the establishment of employment is not an issue.

Seeking Advice on Labor Commission Office and Process

Can anyone suggest where the nearest office of the labor commission is (the company is based in Okhla) and share experiences of others who have gone there? Is lodging a complaint a simple process? Does it involve a lot of paperwork and bureaucratic red tape? How quickly is the matter resolved, and do I need some proof of refusal to pay gratuity by the employer?

Seeking Additional Advice

Any other advice that will help me get my dues will be helpful. Should I approach a lawyer first? Can anyone in this forum do the needful for me (I am willing to pay a reasonable fee)?

Thanks and regards.

Can anyone tell me the address and other contact details of the office of the Labour Commissioner where a complaint against a company refusing to pay gratuity can be made? The company in question is located at Okhla Industrial Area Phase 1, New Delhi.

You can approach the labor office in your area; however, the most important thing is to obtain a relieving letter cum no-due certificate from your employer. Don't approach your labor office unless you have obtained these two.

Procedure to Follow for Gratuity Claim

The relieving letter will serve as proof of employment. You can follow the procedure below:

- **Step a:** Once you receive the relieving letter, send a letter to your employer by Registered A/D requesting the gratuity.

- **Step b:** If you do not receive a reply, send a second letter (or reminder) referencing your initial letter. Send this letter also by Registered A/D. This time, cc the labor officer of your area.

- **Step c:** If the employer does not take any action even after a fortnight or so, visit the labor office with all proof of your employment and past correspondence. Explain your problem to the labor officer. If the labor officer is busy, they may schedule an appointment on a specified date. Revisit and explain everything.

- **Step d:** The labor officer will treat this as an industrial dispute and summon both parties. They will provide their verdict (most likely in your favor). At this point, you need to prove that there was no break in your employment and that you had continuous service of at least 4 years and 240 days.

- **Step e:** If your employer remains adamant and does not pay you the gratuity, seek legal advice and send a lawyer's notice.

- **Step f:** If the employer does not respond to the lawyer's notice, you are free to file a lawsuit against your employer.

- **Step g:** If there are several individuals who have not received gratuity, it is advisable for all of you to follow the same procedure and collectively approach the labor officer. Your collective representation will strengthen your demand.

Regards,
Dinesh V Divekar

Gratuity Claim Time Frame

What is the time frame to claim the gratuity if a person left the job in mid-December 2010 and registered a gratuity claim now? Is it okay, or is it compulsory to file the claim within one month only?

Thank you, Dinesh Divekar. I have a relieving email from my employer. I also have a termination letter which is in an email. The employment letter, of course, is in hard copy form. I hope this will suffice. Also, my services were terminated with effect from Feb 28, 2011. The company is dilly-dallying and not giving any firm reply either way. What I want to be sure of is that there is no limitation as to when one can approach the labor office for relief. If there is, then I am sure the company is taking advantage of this fact. Also, I have to get Form 16 from them for the tax deducted from my salary. Is it possible for the company to use this as a tool to deny gratuity? Please advise.