How Can I Claim My Gratuity When My Former Employer Isn't Responding?

I worked for a company in Coimbatore (Senas.Net P Ltd) for 6 years and 8 months. I got relieved from the company on December 24th, 2013. They said they don't have the gratuity scheme registered with the company. I sent a Payment of Gratuity (Central) Rules FORM ‘I’ to the employer 45 days before, but still, there is no response.

Please advise how I can proceed further or how to send the "Form N" Application for Direction via the controlling authority.

Thanks in advance.

Filing a Claim Petition for Gratuity

You can make a claim petition before the Controlling Authority under the POG Act, having jurisdiction over the area where you were working. Go to the nearest labor office to know the Controlling Authority.

There is no need for co-registering for gratuity.

Regards

I'm currently in Bangalore, so I need to visit the Coimbatore Labor Office to file the claim petition, correct?

Regards,
Jayaprakash
[Phone Number Removed For Privacy Reasons]

Yes, Jayaprakash. A period of 90 days may be prescribed under Tamil Nadu Gratuity rules, within which you have to make a claim before the controlling authority. If that period of limitation is over, you have to show sufficient cause for the delay.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

No company consisting of more than 10 men can deny the payment of wages. The Payment of Wages Act is clear in providing such a facility to eligible employees. A company falling under the Factories Act or Shops & Establishments Act should avail of this facility for the welfare of their employees.

Reasons an Employer Can Deny Gratuity

- Any valid show cause or any other kind of employer's inquiry proceeding against the applicant (when in service).
- Any other reason for the employer regarding the service of the employee, perceiving it as nullity.
- When there are no specific negative remarks on the employee and the gratuity is still denied, the applicant has the option to file a complaint with the concerned labor officers, inspectors, or Commissioner of Labor (Central).
- Through the lodged complaint, they can appeal to the District Collector to secure their rights to gratuity.

Regards

There are no such remarks on me. Most of the employees in the company won't sustain in service for more than 5 years; only a few of them do. I'm one among them. The company is a private limited company, and there are around 50-60 people working now. I think I'm the first one to opt for gratuity from the employer. I have never heard of the company paying gratuity to any of the employees during my service.

Procedures for Gratuity Application

If anybody knows the procedures to be followed at the labor commissioner's office, that would be helpful. I have all the valid documents like my appointment order, experience certificate, and service letter.

Thanks in advance.

It seems to me that you have submitted the Form I to the wrong authority. The competent authority for you is the State Government and not the Central.

My company reduced the basic pay from ₹32,274 to ₹13,167 for the last two months. They have split the basic pay into allowances like Special Allowance, Medical Allowance, Personal Allowance, and Food Allowance. Now, while calculating the gratuity, the total gratuity amount is now reduced to half. Is it possible to reduce the basic pay like this? Please advise.

Please find the previous and current pay details:

Until October 2013
---------------------------
Basic - ₹32,274.00
HRA - ₹14,901.00
Conveyance - ₹4,036.00
PF (Mgmt) - ₹780.00

For November and December 2013
--------------------------------------------------
Basic - ₹13,167.00
HRA - ₹7,900.00
Conveyance - ₹3,950.00
Special Allowance - ₹10,534.00
Personal Allowance - ₹8,427.00
Food Allowance - ₹3,292.00
PF (Mgmt) - ₹780.00

So, the total for both of them is ₹52,000, but the basic is reduced.

Calculating Gratuity: Understanding the Process

How should I calculate the gratuity now? The total gratuity amount until October is around ₹1,30,000. If I calculate with the last drawn basic pay, it's only ₹60,000. The company is saying that they have revised the pay structure.