Is My Company Right to Deny Gratuity After 6 Years? Seeking Advice on Next Steps

jismongeorge
I have approached the company for a gratuity claim. Unfortunately, my HR is telling me that the company started offering gratuity in 2011, and as only 4 years have passed since then, they cannot provide it. However, I have completed 6 years of service in this company. Could you please confirm if there is a specific criterion in the law stating that a company should offer gratuity for at least 5 years? Additionally, what actions can I take to pursue my claim if I am eligible?
umakanthan53
Clarification on the Payment of Gratuity Act, 1972

The information furnished in the query is not complete. However, let me try to provide some general clarifications regarding the applicability of the Payment of Gratuity Act, 1972 to the establishment and the eligibility criteria of the employee to stake his claim for gratuity.

Applicability of the Act

The Act applies to every establishment, whether it be a factory, mine, oil field, plantation, port, railway company, every shop, or establishment within the meaning of any law in which 10 or more employees are employed, and any other establishment employing 10 or more employees notified by the Central Government as such. Once the Act becomes applicable to an establishment, the subsequent reduction in the employee strength below 10 has no relevance at all.

Eligibility for Gratuity

Every employee who has completed 5 years of continuous service in the establishment shall be paid gratuity on the termination of his employment due to superannuation, retirement, resignation, death, or disablement due to accident or disease. However, the minimum limit of 5 years is not applicable in cases of termination of employment due to death or disablement. Therefore, the duration for which the Act has been applicable to the establishment is not a criterion for the payment of gratuity to an otherwise eligible employee.

Since you have completed 6 years of service as of now, you are eligible for gratuity in the event of termination of your employment due to the aforementioned reasons. You can file a claim before the Controlling Authority under the Act for the area of your establishment. It is advisable to consult an advocate or a trade union leader for further formalities.

Regards
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