How Can I Recover My Gratuity After 10 Years of Service and Sudden Termination?

Greetings to all, my employer refuses to pay gratuity. I have worked for the past 10 years, and suddenly they have terminated me from the service. There is no letter from them regarding this. I need advice from a superior on how to recover the gratuity.

Thanks,
Mahadevan

If you have records showing that you worked there for 10 years, you can give notice to your employer with a cc to the Labor Commissioner in the area to claim your gratuity.

Regards,
Vinod Bidwaik

Legal Termination and Employee Rights

Termination cannot be legal when it does not fulfill legal actions and compensation, including gratuity, as part of employee welfare under labor laws. You can discuss your matter with the local labor authority, such as the assistant commissioner or labor officer, and follow their guidelines for submitting your grievance.

Thank you for your kind reply. One more query... Some of my colleagues are also seeking their gratuity from the same concern. Can we go together to the labor commissioner to claim it? I feel it would be a strength for us.

Regards,
Mahadevan

Why do you need more strength from other colleagues? As rightly advised above, take immediate action. Do you have an appointment letter? Do you have the termination letter? How was the termination communicated to you? Do you have evidence such as pay slips, attendance card, or any other similar evidence that you worked in that organization for the period as indicated above? Was any domestic enquiry conducted? What was the reason for termination given orally or in writing? Was your PF being deducted from the salary? Do you have a PF number? You have not mentioned your PF issue. Why?

Approach immediately the concerned Labour Commissioner along with a properly drafted letter giving full facts and evidence with a copy to your erstwhile employer for the release of gratuity and PF.

Regards,
SATISH KUMAR DHANWAL Sr. Manager (HR)/NTPC Ltd. (retd.)

It's sad that the termination took place, and that too without any orderly manner or observing necessary packages. Are you covered under the ID Act? Nevertheless, you should claim:

1. Full gratuity and full PF settlement
2. Retrenchment compensation as per the ID Act
3. Notice pay
4. Encashment of leave at credit
5. Pension to commence at once.

There's nothing wrong if every one of you follows suit by filing individual settlement forms as per the respective acts.

Regards,
Kumar S.

Keeping in view all the points mentioned above, I would like to suggest some steps to be taken promptly.

Steps to Address Gratuity Concerns

First, you should present your concerns to your HR department and allow a period of 10-15 days for a response.

Secondly, seek guidance from the local labor department officials for advice, without lodging a formal complaint.

Lastly, ensure you maintain regular communication and follow-ups in your efforts.

I hope these suggestions prove helpful. Let me know if you need further assistance.

Regards

If you have a personal email, write to your HR Department using their email ID and CC the CFO and Management regarding the gratuity and other benefits you are entitled to as per your appointment letter. Wait for a reply for 15-20 days. After that, seek assistance from the labor authority.

Regards,

As rightly said by Mr. Satish, if you are a workman under Section 2(s) of the ID Act, you can raise the dispute under S. 10(a). You have mentioned your designation and nature of work. If your colleagues want to raise the dispute, they can do so individually. Every case has its own merits and demerits.

Evidence and Documentation

Do you have an appointment letter? Do you have the termination letter? How was the termination communicated to you? Do you have evidence such as pay slips, attendance cards, PF/ESI numbers, bonus slips, annual increment letters, etc., or any other similar evidence that proves you worked in that organization for the indicated period? What reason for termination was given orally?

You could have written a letter to your employer about the reason for the termination, and if they replied to your letter, it would have been good evidence for your case.

If you approach the commissioner, they will likely refer the matter to court as your employer may not agree on many things.

Regards,
G.K. Manjunath, Sr. Manager - HR

Points to Address Regarding Employment and Gratuity

There is no clarity in the query. The following should be addressed:

1. What is the status of the company or organization? Is the company subject to the Shops and Establishment Act of the state in which it is situated?

2. What conditions were outlined in the employment letter when the candidate was hired?

3. Was there any mention that "the company follows all statutory regulations" or similar statements?

4. Is the company covered under the Labour Act?

5. Was there a termination letter and issuance of an experience certificate stating the candidate's employment dates, indicating the number of years of service?

6. If the PF subscription from the company was accurately credited to the PF accounts and pension contributions were made correctly, the candidate may be eligible for a pension after completing 10 years of service. The pension payment would commence when the candidate reaches the age of 58.

7. If all the above aspects are in order, the candidate can approach the Labour Commission to address any grievances.

Regards,
Subba Rao Bhagavatula.

A collective action, either as a union or a group of such retrenched employees, would provide better bargaining power and strength. In case a dispute arises and goes to court, it would offer better guidance to minimize legal expenses, etc. It is advisable to pursue this as a union if you are covered under the Trade Union Act. If you don't have a union to fight it out, there is nothing wrong with organizing a group and addressing the matter boldly.

Regards,
Kumar S.

Dear Mahadevan,

Sure, it is better if you approach the Labour Commissioner collectively. It is highly advised to do so as it will have a much greater impact on your case. Don't hurry; you have plenty of time to file your case. So, proceed calmly and coolly, and you will surely get your gratuity.

Regards,
Mahadevan

Approaching the Labor Commissioner for Gratuity Issues

Another aspect you don't need to approach any union for that, just visit the local labor commissioner's office for help and file a simple application. If you approach any trade union, they may ask for money to pursue your case, which is not needed here. In my opinion, go ahead and file the application as a group by yourself.

Regards.

You have mentioned they have terminated your services. For any employer, there should be an authorized reason to terminate an employee, and the same has to be communicated to the employee in writing or via email.

Forfeiture of Gratuity:
(Sec 4) (6) The gratuity of an employee, whose services have been terminated for any act, willful omission, or negligence causing any damage to the property belonging to the employer, shall be forfeited to the extent of the damage or loss caused. The gratuity payable to an employee shall be wholly forfeited if the services of such an employee have been terminated for (1) his riotous or disorderly conduct or any other act of violence on his part or (b) any act which constitutes an offense involving moral turpitude, provided that such an offense is committed by him in the course of his employment.

Thus, the law provides for the forfeiture of the gratuity in case of employee misconduct. Depending on the nature of the misconduct, sometimes complete forfeiture results, and at other times only partial forfeiture results.

Controlling Authority: If an employer is not paying gratuity without showing any authorized reason for termination, you can make an application to the Controlling Authority. Upon receipt of the application from you, they issue a certificate for the gratuity amount to the Collector. The Collector shall recover the amount as arrears of revenue together with compound interest at the rate of 9% p.a from the date of expiry of the prescribed time and pay the same to the employee entitled thereto.

First, speak to the right person/HR Dept, get to know the exact reason for termination. If you find no valid reason, convey the message to HR and ensure things are done smoothly. If not, please approach legally.

Good Luck.

Have you received the full and final settlement amount? If yes, please send a reminder letter to your employer, mentioning the omission of gratuity. If your employer is unwilling to provide gratuity, you can approach the area labor inspector or labor commissioner.

It is also important to consider the position you hold. If you are in a senior-level position, you have the option to seek resolution through the civil court.

Thank you,

Regards,
Kartik Chandra Dutta

All my learned friends have advised you correctly, but one thing is missing, i.e., the submission of an Application for Gratuity by an employee in Form I. This is essential before you approach the local labor authority. You are required to send the aforesaid application by registered post, then wait for thirty days. After this period, it is the right time to approach the authority.

Next, you have stated that your services were terminated. For what reasons? Because that too matters.

Regards,
Pedgaonkar
Asst. Commr. of Labor (Retd)
[Phone Number Removed For Privacy Reasons]