How Can I Claim My Gratuity from an Employer Who Refuses to Pay? Seeking Advice

Good day,

I have worked for an IT company based in Chennai for 15 years, from October 2000 to July 2013 in the Indian payroll, and deployed in Saudi Arabia from August 2013 to May 2015. I resigned from my services at the end of May 2015. I am requesting forum members to suggest how I can get my gratuity amount for the period worked in India. The employer is not willing to settle the gratuity amount. The organization is based in Chennai.

Kindly suggest how I can obtain my gratuity amount.

Firstly, as per my knowledge, for the period you worked in India, if your employer has deducted gratuity from your salary, it should be mentioned in your salary slip. If not, it will be stated in your appointment letter that you are under the gratuity scheme. An employer is obligated to settle an employee's gratuity; it is the right of the employee to demand it.

Secondly, regarding your tenure in Saudi Arabia, if they have deducted gratuity, you should receive the gratuity for the entire 15-year period. However, the processing time may vary from company to company, so it is advisable to check with your HR department regarding the time they will take to settle it.

Regards

Subject: Request for Gratuity Payment

Dear [Company Name],

I am writing to formally request the payment of gratuity that I am entitled to as per my employment agreement. I would like to outline the periods during which I was employed with the company and request the corresponding gratuity amount.

I worked with [Company Name] from [Start Date] to [End Date], totaling [Number of Years/Months]. As per the company policy and the employment laws, I am eligible for gratuity payment for this duration.

I kindly request that the gratuity amount be calculated and processed at the earliest convenience. It is essential that this payment is made in accordance with the regulations and timelines set forth by the law.

I would appreciate it if the payment could be made via a cheque or bank transfer to the account provided.

I am sending this letter via Registered Post with acknowledgment due to ensure that delivery is properly recorded. In the event that I do not receive a response or if there are any delays in processing the payment, I may have to escalate this matter to the relevant labor authorities for assistance.

Please provide the necessary guidance and support to ensure a prompt and smooth settlement of my gratuity dues. I kindly request your cooperation in this matter and look forward to a favorable response from your end.

Thank you for your attention to this request.

Sincerely
[Employee ID]
[Contact Information]

Gratuity Deduction and Settlement Advice

Hi, firstly, as per my knowledge, for your work period in India, if the employer has deducted your gratuity from your salary, it will be mentioned in your salary slip. If not, your appointment letter will indicate that you are under a gratuity scheme. An employer is bound to settle an employee's gratuity; it's a right of the employee to demand the same.

Secondly, regarding your tenure in Saudi Arabia, if they have deducted the gratuity, you will receive the gratuity for the entire 15-year tenure. However, the procedure time depends on the company, so it's better to check with your HR department regarding the time they will take to settle yours.

This is your first-ever post on this knowledge-sharing platform. You became a member of this open forum today. You are most welcome to participate here.

I read your post and took a pause before responding. I was contemplating whether to respond or not. My intention is not to hurt you but to advise you to study first before posting anything so that no wrong information is communicated. This advice is not only for you but for every member of this forum, including me. I know I am exceeding myself here, but when I read that gratuity is deducted from the salary, I could not control myself.

I apologize for this post.

Regards

Gratuity Payment Under the Payment of Gratuity Act 1972

Gratuity is payable by the employer as per the Payment of Gratuity Act 1972. This Act is applicable to:

- Every factory, mine, oilfield, plantation, port, and railway company;
- Every shop or commercial establishment employing ten or more persons;
- Other establishments or class of establishments employing ten or more persons, by notification of the Central Government.

Gratuity is payable upon the termination of employment after rendering continuous service for not less than five years. I am not going into details on this. This subject has been discussed on this forum many times.

The employer is supposed to settle Gratuity within 30 days.

Steps to Obtain Gratuity

You are, therefore, advised to:

1. Make an application immediately to your employer in Form I;
2. If your employer does not take any action on your application, please apply to the Controlling Authority (CA) in Form N within 90 days of the occurrence of the cause for application to issue necessary directions to your employer for making the payment of Gratuity;
3. If the CA does not issue an order of direction to your employer or the order is not in your favor, please prefer an appeal to the Appellate Authority within 60 days;
4. If the amount of gratuity is not paid despite the order of the CA or the Appellate Authority, please apply to the CA in Form T for the recovery of the amount through the collector as arrears of land revenue.

You will find all the forms in the POG Act 1972.

Regards

Thank you, Mr. Korgaonkar,

You have provided specific and proper information along with the steps to be followed. I would like to know how many years of service would be considered for Gratuity purposes.

Thanks and Regards in advance

Dear Pramodthakar, Thanks for your acknowledgment of my post.

Also, thanks for inviting me to the discussion further. This matter has been discussed on this forum many times, and there are different views expressed by the members. This forum is an open forum where anyone can write anything, and no discussion is concluded to a valid or convincing point. This subject matter has also not reached any valid or convincing point. This subject is discussed in many threads haywire.

Knowing the decision by Madras HC and Kerala HC, I still have a view that to be eligible for gratuity, one has to render continuous service for not less than five years. However, those who fall under the jurisdiction of Madras HC and Kerala HC cannot disregard the said decisions.

I repeat this in different words as follows:

A person would not be legally bound to follow the decision of the Madras HC and Kerala HC in respect of the locations/establishments of that person situated outside the State of Tamil Nadu and Kerala. However, in the State of Tamil Nadu and Kerala, the person’s establishment will be bound by the decision of the Madras HC and Kerala HC until these decisions are not challenged in SC.

I know that I am not an expert. I am an ordinary member of this forum. But still, I used this platform to express my views upon your invitation, which needs to be examined by experts.

Regards.

To bring clarity on the query raised by Pramodthakar, please read completely the link provided below:

https://www.citehr.com/108564-sc-jud...-download.html

Hi Mr. Korgaonkar,

Sorry for the query being a bit unclear in my previous message.

My query is, in this situation, how many years of service would be considered for Gratuity? The scenario is as follows: The individual's appointment is India-based, they receive their salary in Indian Rupees, and they have worked both in and out of India. For a few years, the individual worked in India. In this context, is the individual entitled to Gratuity for the entire duration of their service, including their time spent working outside of India, or only for the period served in India?

Thank you,
Pramod Thakar

Dear A.B.

Thanks for your contribution. What our Moderators/Super Moderators are supposed to do, you did it. I appreciate your post, but it would have been more appreciated if you had been specific and pinpointed the post(s).

I know that my responses to various posts on the subject of Gratuity for 4 years and 240 days are not digestible to many.