Is an Employee Entitled to Notice Salary and Gratuity After Sudden Job Replacement in India?

I just wanted to know if a person who has served in a private organization in India for 14 years, and after 14 years of career management, the Joint Managing Director (JMD) informed the Vice President (VP) to take a handover to replace this post with immediate effect. They gave instructions verbally. I just wanted to know, in that case, is the employee eligible for notice salary and gratuity payment?

Thank you.

Yes, he is eligible for gratuity payment because he has completed five years of continuous service. If his appointment letter contains a clause stating that he needs to serve a one-month notice period, then he should comply unless it conflicts with your company's policy.

Hello, sir. I don't have the appointment letter with me, but I signed a service contract with the company two years ago. If you don't mind, could you guide me through the process for gratuity?

Resignation Letter Request

One more point, the company has informed me to leave the job, and they are requesting a resignation letter from me. Can I send it or not?

You may resign and fill out the form, then give it to your employer.

Obligations Under the Payment of Gratuity Act

Section 4 of the Act mentions the obligation on an employer of an establishment to consider the case of each employee regarding the payment of gratuity. The employer shall arrange to pay the gratuity amount within 30 days from the date it becomes payable to the person entitled to it. If the gratuity amount under the section is not paid by the employer within the specified period from the date it becomes payable, they will have to pay simple interest on it at a rate not exceeding the rate notified by the Central Government from time to time.

Mode of Payment

The mode of payment of gratuity is outlined in section 9 of the Payment of Gratuity Act, 1972. This section states that gratuity payable under the Act should be paid in cash, or if requested by the payee, by demand draft or bank cheque to the eligible employee, nominee, or legal heir, as applicable.

Regards.