Gratuity and EPS After Leaving a Job: Can I Expect Separate Payments?

I left my organization in April 2014 after working for 5 years and 3 months. I have received my settlement amount of Rs. 29,000 only. I believe this amount includes my last month's salary and leave cash balance.

Gratuity and EPS Inquiry

My question is, will gratuity be paid separately, and can I also receive my EPS money?

Regards,
Amit

Yes, gratuity shall be paid separately by the company. You shall receive a separate cheque and a duly stamped receipt for your acknowledgment of having received the gratuity amount.

Thanks,

R K Nair

My first payment was done through NEFT. Will gratuity be paid by cheque? Kindly clarify my doubt.

Gratuity Payment Process

If the company has a gratuity policy taken from any of the companies like LIC, then LIC shall give the cheque to the trust created by your company in this regard, and the trust, in turn, will pay the gratuity to you. In case the company has not taken any gratuity policy, then the payment of gratuity will be made by the company directly. The payment of gratuity is by cheque.

Gratuity Payment Process

Gratuity payment is a legal due. In accordance with the Gratuity Act 1972, eligible employees shall apply for gratuity through Form I. After processing their case, payment shall be made to them through Form L. The employer is liable to forward a copy of Form L to the office of the Commissioner of Labour as an intimation of the payment of gratuity dues.

Regards,
Suresh K Singh
HR - Generalist

Gratuity Payment Process

Gratuity shall be paid within thirty days from the date it becomes payable, whether with the final settlement or separately, irrespective of having an insurance policy or not. As per Section 7(2) & (3) of the Payment of Gratuity Act, even if the employee has not given any request, the employer shall determine the gratuity and arrange to pay the amount by giving notice to the eligible person and the controlling authority.

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

You can ask your employer to provide the details of your full and final settlement of your account. Normally, during the full and final settlement of services, all dues should be included, such as wages/salary, overtime wages (if any), leave encashment subject to availability, and gratuity, etc., but excluding the bonus. The disbursement of the bonus will have its own timeline, and when the bonus is declared, you will receive it separately, but not the gratuity. As a matter of fact, they must pay you gratuity along with other dues.

Can you confirm whether you have made any application for the payment of gratuity to your employer in the prescribed form under the Payment of Gratuity Act? If not, you should apply in writing and seek the details of your settlement as received by you.

Regards,
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels)
Rtd Labour Laws Consultant

You have to claim your gratuity amount through Form I, and then your employer will proceed further with the process.

Regards,
Rahul

Yes, gratuity can be paid separately. If the company is not willing to do so, you can submit a claim through an application within 15 days. As far as the EPS amount is concerned, it can be claimed from EPFO by simply filling out Form 10C duly attested by the employer after 60 days of resigning.

Thanks & Best Regards,

Sumit Kumar Saxena.

I have been working in a private school in Delhi since March 2010. Initially, I was offered a contractual employment of one year duration with a consolidated salary. In 2011, I was placed on probation for one year with a pay scale similar to the Sixth Pay Commission PB-2 with GP 4800. In 2012, I was confirmed in the same scale with an annual increment.

The school has provided me with Form 16 since 2010, showing TDS deductions made by a trust owned by the school's President.

Queries on Gratuity

I have some queries:
1. Would I be entitled to receive gratuity if I were to leave my job in February 2016?
2. If so, would the year of contractual employment be considered for gratuity payment?
3. Who would be responsible for paying my gratuity – the school that hired me per the appointment letter, or the trust issuing Form 16?

Regards,
Pablo

Dear Pablo,

Greetings for the day. As per the payment of gratuity, you are eligible for the payment if your service has been continued since 2010. Employment terms such as contractual and probation make you eligible for the payment, while apprentices are not entitled to it.

Thanks & Regards,

Sumit Kumar Saxena

I am completing the notice period on 23.12.2021 since I have resigned from my present school. I have worked for 10 years and 4 months. When will my gratuity amount be paid? Is it on 23.12.2021 or within 30 days after the last working day?