Struggling to Receive My Gratuity After Resignation: Is Payment Through LIC Normal?

Dear all,

I am an ex-employee of an organization. I resigned from my duties in May 2014. Since that day, the company has not paid my gratuity. In the last few months, I inquired about the gratuity process, and they informed me that it will be paid through LIC. Is this true? If it is true, when can I expect to receive my gratuity amount, approximately?

My total service in the company was 7 years, 5 months, and 16 days.

Thanks and regards,
T. Naga Ravi Shankar

Understanding Gratuity Payments

Under the prevailing laws of gratuity, no employer can refuse to pay gratuity. It is true that most companies have a group gratuity account with LIC or others, but the responsibility ultimately lies with the employer. Unless the relevant forms for the withdrawal of gratuity have been filled in and submitted by the employer, LIC cannot presume these payouts on its own. Please check if the necessary forms have been filed with LIC for the payout of gratuity.

If, for a moment, it seems likely that they may deny the gratuity, you have the option to raise your objections with the Deputy Labour Commissioner - Central, and they will take immediate action on it. If there is a delay, there will also be an interest component that will be ordered.

I hope this helps clarify the process for you.

Best regards,
[Your Name]