Am I Really Ineligible for Gratuity After 16 Years of Service? Seeking Advice

Gratuity Eligibility After Resignation

After 16 years of service, I resigned from my company. It's a Pvt. Ltd. firm with offices in Delhi and Kochi. I worked at the Delhi office. At the time of my departure, there were 4 staff members in Delhi, and I am uncertain about the staff strength in the Kochi office. Throughout my tenure, there were more than 20 staff members in both offices.

When I submitted Form I for my gratuity, the management sent me a letter stating that I am not eligible for gratuity in accordance with the provisions of Section 1(3) of the Gratuity Act 1972. Is this correct? Kindly advise and assist me.

Regards,
Jose

Applicability of Gratuity:

1. Every factory (as defined in the Factories Act), mine, oilfield, plantation, port, and railway.
2. Every shop or establishment to which the Shops & Establishment Act of a State applies, in which 10 or more persons are employed at any time during the year-end.
3. Any establishment employing 10 or more persons as may be notified by the Central Government.
4. Once the Act applies, it continues to apply even if employment strength falls below 10.

As per the applicability, the company was supposed to fall under the category. Consult a lawyer locally and claim for it.

Regards

Since your employer has establishments in more than one state, you need to approach the Labour Commissioner (Central), provided he is empowered to deal with claims of gratuity. Alternatively, you should file a claim application in the Labour Court, which is the Controlling Authority under the Act.

Thank you.

I fully endorse the views given by Mr. Sri Sai. You are eligible and entitled to claim gratuity. Please approach the Labour Commissioner (Central) and file an application for direction to the employer.

Regards,
R.L. Dhingra, Advocate Labour Law Consultant, Delhi [Phone Number Removed For Privacy Reasons] [Email Removed For Privacy Reasons]