Facing Gratuity Issues After Resignation Withdrawal: Should I Take Legal Action?

Please help, it's urgent. I had resigned from my last job (due to bosses harassing me) in April 2012 and gave one month's notice. During the notice period, they (bosses) asked me to withdraw my resignation, and I submitted a withdrawal letter, requesting confirmation of the acceptance of the withdrawal of my resignation. My resignation letter was not returned by them. In May, they relieved me without giving any reason. Since then, I have been fighting to receive my gratuity payment (Service: 5 years 8 months), and they have been delaying it. Finally, on July 20, I submitted Form I, and in point no. 6 of the form, I filled in the date and cause of termination of service (7th May - employer terminated service without giving a reason). In response, they informed me that my service was not terminated by them; I was relieved as per my resignation, and that's why I am not granted the gratuity. My question is, should I proceed through the court, or is there any other solution? Can I submit the FO?

Eligibility for Gratuity After Resignation or Termination

Whether you resigned or they terminated your service, you are eligible for gratuity since you have completed 5 years and 8 months of service. The Payment of Gratuity Act does not bar an employee merely because their services have been terminated unless it is for misconduct involving financial loss to the company.

Without going into the question of whether it is resignation or termination, you should send a letter to the company stating that gratuity becomes payable within 30 days of submitting the application as per the provisions of the Act. It is illegal to withhold gratuity in this manner, and therefore, the company is liable to settle your claim within a specified period (specify the period), failing which you are free to pursue legal remedies available to claim it. The company will most likely settle your claim.

Regards,
B. Saikumar
Mumbai

Since you have already given the notice and your company has rejected your request, it is better to approach the labor court as soon as possible. You are entitled to receive the gratuity amount with interest at 12%.

Yes, you should send them a legal notice. If they do not act on that, then you can go to the labor court. They cannot deny your money.