Gratuity And Annual Payments

aarrss
Dear Sir
I was employed for 13 years, I was paid annual bonus (8.33%) + 50 % extra of bonus amount.
When I left I demanded for gratuity but told that the annual payments consist of bonus & gratuity liability of company.
The company has only 17 people and no gratuity fund.
Should I accept the annual payment as final or I have rights to demand the gratuity as separate payment.
Arvind
Madhu.T.K
Additional bonus paid to you will not compensate gratuity payable. It is mandatory that the employee like you should be paid gratuity. The Act is applicable to all factories or mines irrespective of number of employees and to other establishments (shops and commercial establishments) employing 10 or more persons. As such your company is covered by the provisions of Payment of Gratuity Act and the company should give you gratuity. You can demand payment of gratuity at the rate of 15 days pay for every completed year of service and it would be approximately 6.5 months salary.
Madhu.T.K
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