Struggling to Claim Gratuity After Resignation: How Can I Get HR to Respond?

I have worked for seven years for a private company and resigned in March 2011. I want to claim my gratuity after leaving the organization. The HR management is not responding to the calls or SMS sent to them, nor are they giving an appointment to meet when contacted at the official number. What options do I have to get my gratuity? Whom should I contact then?

If you have documents to prove that you worked continuously for 7 years, then no one can deny your gratuity money. First, write a letter along with Form I to HR and Management stating your claim for gratuity for the period you served. Wait for a response. If they do not respond, take this matter to the Assistant/Deputy Labour Commissioner for your area with a request letter and Form N for gratuity settlement. He will do the needful.

Regards,
S. Sethupathy, Excellent HR Services, Erode.

Hi Seniors, with regards to gratuity, I have one query. I have been working in a software company since December 2004. In September 2005, I took a one-month break and then rejoined after that. I have been continuously working in the same company since then. If I resign from this company, will I be eligible for gratuity? If yes, how many years of service will be considered?

Thanks & Regards,
Suvarna

Dear all, I joined the company on 2 May 2005 as a trainee on a stipend (no EPF deduction) with an appointment letter. I got confirmed exactly after 1 year, i.e., 2 May 2006 (EPF deductions began), and left on 23rd Feb 2011. Do I stand eligible for gratuity? And from where can I cite the clarity to company HR as they too are not sure, as 5 years have not been completed.

Thanks in advance.

Regards, Ajitsingh

EPF deduction has no role in gratuity calculation. Your date of joining is the base for the calculation. Hence, you are eligible for gratuity.

Gratuity Calculation

Gratuity calculation = Your last drawn basic + DA x 6 years of service x 15/26.

Regards,
S. Sethupathy, Excellent HR Services, Erode.

Hi, my case is also similar to Mr. Redstain's. I have worked for seven years in a software company (First Job). I resigned and was properly relieved in February 2011. When I inquired about my gratuity settlement, HR informed me that gratuity was included with my salary, but I didn't see this component in the payslip breakdown. When I tried to discuss gratuity further, I was told that since it wasn't mentioned in my offer letter, they wouldn't provide it, and the HR representative behaved very rudely. Upon escalating the issue to the manager, I received the same response, with the added statement that even if I pursued legal action for gratuity, they were prepared to handle it.

I am unsure of what steps to take next. Approximately six other individuals with similar experience have left the company without receiving their gratuity settlements, possibly due to concerns about receiving negative feedback during background verification checks. We are now considering taking legal action.

Seeking Legal Assistance for Gratuity Recovery

If we were to approach the Assistant/Deputy Labour Commissioner, would we be able to recover our gratuity money?

Note:

1. All of us were hired through a campus interview and worked continuously for seven years. Gratuity was not mentioned in our offer letters. Is it mandatory to have gratuity mentioned in the offer letter to claim gratuity settlement?

2. Is there a specific timeframe within which one must request gratuity settlement after the date of relieving?

Please assist us.

Regards,
Ram

Dear Ram, Many companies do not mention anything about gratuity in their appointment orders, which doesn't mean that they can deny it. Suppose a company does not mention anything about PF/ESI in their appointment orders, should they explain the same to the PF or ESI authorities for non-deduction? Please go through Section 1 of this Act:

Section: 1

Short title, extent, application, and commencement.

(1) This Act may be called the Payment of Gratuity Act, 1972.

(2) It extends to the whole of India: Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.

(3) It shall apply to:
- every factory, mine, oilfield, plantation, port, and railway company;
- every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.

For your reference, I am enclosing the bare act of it. Please go through this. Also note that if the company is functioning in more than one state, then the Central Rules are applicable.

All the best, Ram.

Regards,
S. Sethupathy,
Excellent HR Services,
Erode.

You are eligible for gratuity, which is not part of the salary structure. It will be payable after continuous service of 5 years. "Superannuation," in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment.

Mr. S. Sethupathy has provided the right guidelines; please follow them and also request the Assistant Labour Commissioner for this.

Dear Ram, Please furnish the following information to answer your query:

1. What was the designation given to you at the time of initial appointment?
2. Was there any subsequent change in the designation given to you? If so, please indicate the change and the date from which the change took place.
3. What was the nature of work done by you? Did it remain the same from the time of initial appointment until you left the company?
4. Where is this company situated?
5. Does it have branches in more than one state?

Thank you.

Dear Harikrishnan,

Designation and Work History

1. My initial designation was Software Engineer Trainee.
2. Every year, along with my appraisal, my designation changed (Software Engineer, Senior Software Engineer, Senior Software Design Engineer, Technical Consultant, and Project Leader).
3. Nature of work: Software Development.
4. The company is located in Chennai.
5. No branches.

Additional Information

1. Number of employees: 150+
2. Even in the company's reception area, they displayed Government Notices related to PF, Gratuity, and Women's maternity.
3. For some employees who left with more than 10 years of experience, the company gave a gratuity amount as an incentive after deducting tax (we came to know this personally because the employer informed them not to disclose).

Please help us.

Regards,
Ram

From the information furnished by you, you are entitled to gratuity under the Payment of Gratuity Act. A further scrutiny of the appointment orders given to you is necessary to calculate the length of service and the quantum of gratuity to which you are eligible. Depending on the location of the company, you have to prefer a claim under the Payment of Gratuity Act before the Assistant Commissioner of Labour (Controlling Authority under the Payment of Gratuity Act) having jurisdiction over the area in which the company is situated. As you have stated that the company has no branches outside Tamil Nadu, your claim has to be preferred before the Assistant Commissioner of Labour of the Tamil Nadu State Labour Department.

Regards

I went to my HR Manager and requested to send a mail or a letter to the accounts department, but the HR replied back saying, "You have been given a relieving letter, keeping in mind your many years of work. Otherwise, you would have been given a termination notice and sent. Please wait for 3-4 months for the matters to settle, and I have to wait for PF forms also. We will send an email to you."

Question About Gratuity and PF Settlement

Now my question is, should I wait for 3-4 months as told by my HR manager? What is the minimum period to ask for gratuity and PF settlement?

Regards,
Redstain

It's your right to claim gratuity, and you should approach the HR department. If they are not responding, send them a registered AD letter, and you can also go to the labor court.

Regards,
Aparna

Please provide the following information to assist in addressing your query:

1. What was the designation given to you at the time of your initial appointment?
2. Was there any subsequent change in your designation? If so, please specify the change and the effective date.
3. What was the nature of the work you performed? Did it remain consistent from your initial appointment until you left the company?
4. Where is the company located?
5. Does the company have branches in more than one state?
6. How many individuals were employed by the company? Did the number exceed 10 at any point?
7. What type of work was conducted by the company?
8. When were you officially relieved from the company's services?

Thank you.

Thanks, Mr. Sethupathy. Your suggestions have helped me tackle my previous company's management and get my gratuity amount cleared. Though it took almost 5 months, it finally happened.

I, Swagatam Sarkar, worked as a Computer Operator in a C&FA of Hindustan Unilever Ltd from December 2006 to March 2012. I worked there for 5 years and 4 months before leaving the job for a better opportunity. Recently, I claimed my Gratuity and Arrears (Salary Increment) for the months from January 2012 to March 2012 from the C&FA owner. However, he completely refuses to pay any gratuity or arrears.

Gratuity Entitlement

Regarding the Gratuity, he mentioned that I would be entitled to it only if I were terminated by him, and since I left the job voluntarily, I am not eligible.

Salary Arrears

Concerning the Arrears for the salary increment from January 2012 to March 2012, he explained that Hindustan Unilever Ltd had increased the salary for current staff members, and as I am no longer part of the current staff, I would not receive the increment. However, as the salary increase was effective from January 2012, and I was employed during that period, I believe I am entitled to the arrears.

I am now completely confused and cannot understand the reasoning behind denying my claims for gratuity and arrears. In my opinion, my claim is justified, and I have the right to receive my Gratuity and Arrears. If I am indeed entitled to the Gratuity and Arrears, please assist me in this matter.

Thank you.

I presume that the establishment in which you were employed is governed by the Shops and Establishments Act. Please indicate the number of workmen employed in the establishment.

With regards

If a person has been working since the year 2000 and was on leave without pay (LOP) for the past year, and then resigns after one year, for how many years is gratuity applicable?

Please contact the Labor Superintendent or Deputy/Assistant Labor Commissioner of your area immediately. Do not remain quiet in situations like this, as such practices only embolden employers to repeat the same actions.

Thank you.

Hello, I have been working for the same company for the past 10 years. We have more than 20 employees. My company does not have a gratuity policy, so they say they are not entitled to pay gratuity even if you have worked for more than 5 years. Additionally, the company does not deduct any PF from the salary. Our salary pay is as per the cost to the company (only professional tax and our income tax liability amount are deducted from our monthly salary).

Is gratuity a mandatory rule or a policy that the company can decide whether to implement or not?

Hi, I was working at my earlier company for nearly 10 years. From 2008 to 2014, they arranged salary reimbursement through one particular agency, and from 2014 to May '2018, they provided it through the Manpower agency. I resigned from my job in June '18. Am I eligible for Gratuity? Please guide me. In case they only considered the second agency, I worked for only 4 years and 5 months. Please guide me.