Struggling to Get My Gratuity After Resignation: What Can I Do Now?

Hi all, I have already resigned from the company in January 2008. However, I have not received my gratuity payment until now. Whenever I inquire about it, they provide various reasons. Is this permissible according to the company's rules or regulations? What steps can I take to obtain my gratuity?

Please provide the following details:

- Date of joining
- Date of leaving
- Nature of the company's activities
- Number of employees in the company.

Thank you, Harikrishnan sir, for the reply. I am providing additional details below:

Employment Details

- Date of joining: 03-11-2000
- Probation period: 6 months
- Basic pay: $7500 at the time of leaving
- Gross salary: $29000
- Date of resignation: 10-01-2008
- Company: Animation Studio
- Approximately 500 employees were present at the time of joining.

Regards.

Thank you, Harikrishnan, sir, for the reply. I am providing additional details below:

Employment Details

- Date of joining: 03-11-2000
- 6-month probation
- Basic pay: 7500 upon leaving
- Gross salary: 29000
- Date of resignation: 10-01-2008
- Company Name: Animation Studio
- Approximately 500 persons were employed at the time of joining.

Regards.

You are entitled to receive gratuity at the rate of 15 days' pay for every year of continuous service. In your case, the number of years of continuous service is 7 years, 2 months, and 7 days. You are entitled to gratuity for seven years at the above-specified rates. One day's wage is to be calculated by dividing the last basic plus dearness allowance by 26. I have assumed that during the period of service with your employer, there was no break in the service rendered by you.

With regards,

Thank you, sir, for your sincere reply. I have one more query regarding this issue. How many months can they take to issue the gratuity? Is it within one month or one year after resigning?

As per the Payment of Gratuity Act 1972, Section 7 Sub-section 3, the employer is liable to release the amount of gratuity within 30 days. In case of failure on his part, the controlling Authority (Assistant Labour Commissioner/Labour Commissioner) may be contacted to determine the gratuity amount, besides the damages (interest) for the delayed period. Application Form 'I' to claim the Gratuity is given below.

Regards

Subject: Re: Gratuity

As per the Payment of Gratuity Act 1972, Section 7 Sub-section 3, the employer is liable to release the amount of gratuity within 30 days. In case of a failure on their part, the controlling authority (Assistant Labour Commissioner/Labour Commissioner) may be contacted to determine the gratuity amount, besides the damage (interest) for the delayed period. The application form 'I' to claim the gratuity is given below.

Regards

Thank you for the reply. One more query regarding this: What is the situation if an employer terminates a person? Is the terminated individual eligible for gratuity?

Hi, please send me a gratuity report as per labor law. I have prepared the gratuity report with the following details: Name - Date of Joining - Years of Service - Basic Allowance + Dearness Allowance - Gratuity Amount. My accountant is not accepting this kind of report, and he requires a report that complies with labor law standards and is certified by professionals. Please advise me on how to proceed.

Yours is a case of resignation and not termination. You are entitled to gratuity.

Regards

You have the right to get your gratuity back from your employer; this right is granted by law. All you need to do is go to the labor department and meet the controlling authority, presenting your Appointment Letter or Relieving Letter. They can assist you in retrieving your gratuity from your previous employer.

Regards

Harikrishnan Sir had already cleared the query.

Gratuity Calculation

Gratuity (in your case) = Gratuity Days X One day Wage (Basic + DA)

Length of Service = 7 years 2 months 8 days

Gratuity Days = 7 X 15 + (2 X 30 + 8) X 15 / 365 = 108

Gratuity to be paid by the employer within 30 days after Retirement. We in our organization usually start our procedures on the 10th of the retiring month, such that we pay Gratuity on the next day of retirement.

Steps to Address Unpaid Gratuity

You may meet the ALC (Assistant Labour Commissioner) regarding your unpaid Gratuity Amount. In any case where the employer has not paid gratuity to the concerned person or their nominee or in any dispute, they need to submit the same to the ALC Office for safe custody and necessary action.

You may meet, and your previous employer will have to pay you Gratuity with the interest therein.

In case the employer has not paid the gratuity, please submit an application before the ALC/Controlling Authority having jurisdiction, along with your correspondence for condonation of delay.

If the employer fails to pay the gratuity within the stipulated period, i.e., 30 days from the day it becomes due, they will be liable to pay 10% interest as notified by the central government vide notification No. S-70012/6/87.SS-II(II) dated 1st Oct 1987.

Thanks & Regards,

RL Dhingra
Advocate & Labour Law Consultant, Delhi
Mobile: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

Dear Shri Santosh Kumar Ji, you are entitled to receive gratuity for the services rendered by you from 03/11/2000 to 10/01/2008. The qualifying service period is 7 years, 02 months, and 07 days, rounded off to 7 years. Because the gratuity is computed on basic pay + dearness allowance and not on other allowances only, and you have not specified these two factors, I am not able to work out the amount of gratuity you are entitled to for 7 years. The reason you are not receiving the gratuity despite the lapse of 2 years and 7 months may be because you have not filed a written claim for gratuity. It is not automatic. You have to submit a claim for the payment of gratuity in the prescribed form. The form is available in the Payment of Gratuity Act, 1972. You may get a copy of the form from the office of your former employer or even from your present employer also.

Please clarify whether you had filed a written claim for payment of gratuity. The employer is bound to settle your claim within 30 days from the date of receipt of your claim or pay interest at the bank rate for the period of delay beyond 30 days. Please let us know the date of your lodging the claim so that we can think about what could be the possible reason for non-payment of gratuity to you by your former employer.

With regards,

Dear Shri Santosh Kumar Ji, please refer to my earlier post and let me know if your former employer has provided you with a written response, or are they only giving oral explanations to your queries.

Thanks and regards,

Thank you for your advice and reply. I haven't received any return reply from my former employer because I did not apply for gratuity through the proper documentation. I have only been in touch with them over the phone as I believed the process for gratuity approval was automatic. Only now have I learned the correct way to apply for gratuity. Unfortunately, I have lost more than 3 years now. I will keep you updated on the progress of my gratuity approval.

Thanks and regards,
Santhosh Kumar