How Can I Claim My Gratuity After 6 Years of Service When My Company Is Struggling?

Dear Experts, I joined the organization on 15th February 2007 as a Management Trainee and was confirmed on 01 April 2008, making me eligible for gratuity payment. I resigned from the organization on 20th February 2014. According to the Gratuity law, I had completed more than 5 years (5 years, 10 months, 20 days). However, the company is currently in a very bad financial situation. They have not paid me the last 7 months of salary and have not contributed to my PF for the last year. Consequently, they did not provide me with a relieving letter but issued an experience certificate and a No Due Certificate. I have all the necessary proof for my relieving.

Claiming Gratuity Amount

Now, how can I claim the gratuity amount? I found in the company's annual report that they have deposited the gratuity fund with LIC. Almost all employees are leaving the organization due to non-payment of salaries. My query is, how can I claim the gratuity amount since I have completed 6 years of service? Please guide me.

Regards, Phaneendra T J

The employer is liable to make payment of gratuity under the Payment of Gratuity Act within 30 days from the date of release. Since they failed to make payment, you may approach the Controlling Authority under the PG Act, who is generally the Labour Commissioner, with an application. The CA will summon the employer and facilitate in getting the gratuity to you.

Best of luck.
Regards

Thank you for your valuable suggestions and feedback. Is there a specific procedure or format to approach the controlling authority?

Regards,
Phaneendra T J

You need to apply in Form 'I' prescribed under the Delhi PG Rules, 1973, giving particulars of the service with your previous employer and send it to the Controlling Authority of the state. The NCT of Delhi has been divided into nine regions; therefore, you have to check under which region your organization falls. You need to apply to the Controlling Authority accordingly.

Form 'I' is attached for your necessary action.

Regards,
BS Kalsi
Member since Aug 2011

Thank you very much for your input. I was working in Chennai, but the company is registered in Delhi, Janakpuri. Therefore, based on your statement, I understand that I should send Form I to the controlling authority in Delhi. Please correct me if I am wrong. Thanks once again.

Regards,
Phaneendra T J

Dear Phaneendra,

Since you have mentioned that your company is registered in Delhi, Janakpuri, I have checked and found that the area of Janakpuri falls under the West district, and their Labour office is located at Karampura. Therefore, you need to file Form I with the Controlling Authority there.

Regards,
BS Kalsi
Member since Aug 2011