Understanding Gratuity Entitlement and Non-Compliance: Employee Rights and Legal Implications

srinivashr23
Hi everyone!

I worked in a Pvt Ltd construction company for 6 years. There is no gratuity registered with any government authorities. Since I worked for 6 years, can I claim gratuity as a matter of right? If yes, what is the process and whom should I approach?

Kindly suggest me on this.

Srinivas
srinivashr23@gmail.com
anand.backelal@parker.com
Yes, you are eligible for gratuity. You can contact your respective HR department. I hope in your CTC they have included gratuity deduction.

Regards,
B. Anand Kumar
hrvinod2013
Dear Shrinivas,

First of all I would like to inform you that The Payment of gratuity Act, as enacted in 1972, applies to every shop or establishment within the meaning of any law for the time being in force in a state, in which 10 or more person are employed or were employed on any day of the preceding 12 month. If yes than you are entitled for gratuity on separation of your employment @ 15 days last drawn salary ( 26 days in month basis) for every completed year of service ( 240 days including sanctioned leave)

if your last drawn Basic Plus DA is ( for eg.) Rs. 20000/- hence the calculation will result as follows 20000/26 x 15 x 6 years= 69231 ( note that calculation is different for seasonal establishment)

You can apply for gratuity in writing in form I as given below.

[See sub-rule (1) of rule 7]

Application of gratuity by an employee

To

[Give here name or description of the establishment with full address]

Sir/Gentlemen,

I beg to apply for payment of gratuity to which I am entitled under sub-section (1) of section 4 of the Payment of Gratuity Act, 1972 on account of my superannuation/retirement/resignation after completion of not less than five years of continuous service/ total disablement due to accident/ total disablement due to disease with effect from the …………… Necessary particulars relating to my appointment in the establishment are given in the statement below:

Statement

1. Name in full.

2. Address in full

3. Department/Branch/Section where last employed.

4. Post held with Ticket No. or Serial No., if any.

5. Date of appointment.

6. Date cause of termination of service.

7. Total period of service.

8. Amount of wages last claimed.

9. Amount of gratuity claimed.

I was rendered totally disabled as a result of

[Here give the detail of the nature of disease or accident]

The evidence/witnesses in support of my total disablement are as follows:

[Here give Detail]

Payment may please be made in cash/open or crossed bank Cheque.

As the amount of gratuity payable is less than Rupees one thousand, I shall request you to arrange for payment of the sum to me by Postal Money Order at the address mentioned above after deducting postal money order commission therefrom.

Yours faithfully,

Place Signature/Thumb impression of

Date the applicant employee.

Note: 1. Strike out the words not applicable.

2. Strike out paragraph or paragraphs not applicable.



Tanks

Vinod
Swati Virmani
Dear Vinod,

Thank you for the piece of information above. However, as mentioned by Mr. B. Anand Kumar, the company is not registered for gratuity, and hence is not complying with the statutory law. What is the penalty for the company in this case? Please suggest.

Regards,
Swati
srinivashr23
Ms. Swati Virmani was right; my company is not registered for gratuity. In this case, what action should be taken? Please suggest.

Thanks & Regards,
Srinivas
y123-56
Dear Srinivas,

Please follow the following link: https://www.citehr.com/465681-proced...tuity-act.html.

Hope this will be helpful to you.

Regards,
Asmita
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