Resolving Delay in Public Sector Insurance Company Gratuity Payment

I retired from the public sector insurance company in Mumbai. After retirement, I settled down in Baroda. You can approach the Assistant Labour Commissioner in Baroda for directions to the company, as they have their regional office there. Please guide me.

Mr. Kumar,

Yes, you can approach ALC Baroda with all relevant proof and give a written complaint with the enclosed proof of your retirement. State that until now, you have not received your gratuity. Remember to copy the ASL Mumbai and the office where you retired on the complaint.

Regards

Sir,

"Public Sector Insurance Company" perhaps will mean companies like LIC, National Insurance, etc. I think, in respect of such PSUs, the service rules applicable may be either as applicable to the Central Government or specifically framed and adopted by such PSU.

I suggest you consider utilizing the remedies available under the service rules of the organization you served. ALC of the State Government perhaps will have no jurisdiction in the matter. You can also consider filing a case in the Central Administrative Tribunal (CAT) for a delay in the payment of Gratuity, if the service rules of the organization you served permit so.

Dear Mr. Kumar,

Perhaps the PSU Company in which you were working is following the old pattern of receiving a claim and a "No Dues" certificate, after which they process Gratuity payment. You should first ensure that you have filed your Claim in Form - I. If they do not make this form available, just submit your claim on plain paper and obtain a receipt thereof. However, they cannot deny payment within 30 days of its being due merely on the ground of non-receipt of the Claim and No Dues certificate because Gratuity cannot be attached to any penalty or Court's Decree unless the amount is deductible due to termination on the ground of moral turpitude and the amount of recovery is mentioned on the Dismissal Order.

In case a period of 30 days has elapsed, you can submit an application to your office claiming interest on the payable amount for the period of delay until it is actually paid. If there is a refusal, you can approach the Controlling Authority under the PG Act, i.e., ALC(C), under whose jurisdiction the Unit of the PSU falls.

Hope you will get your dues as directed under the Act.

AK Jain