Facing Gratuity Denial After 13 Years of Service: What Steps Can My Friend Take?

Dear All,

One of my friends has worked for a reputed group for more than 13 years. He started his career in one unit, worked there for 5.5 years, and then was transferred to another unit within the same group at a different location, where he worked for 8 years. Now, he has found a better opportunity and has submitted his resignation. However, the company has refused to release his gratuity. His present basic salary upon leaving is ₹33,000 per month. What can be done in such a case? Can anyone please suggest a solution?

Regards,
KIRAN ARORA

Dear Kiran,

Your friend should contact the HR department of his company and ask for the reason for not receiving gratuity. If they do not provide a satisfactory answer, he can consider sending a legal notice if he has proof of serving for 13 years within the same group and being transferred from one unit to another unit within the same group.

For further details, feel free to contact me at 09925150259.

Thanks,
Amit Kumar Tawar

Thank you, Mr. Tawar.

Basically, his company sent him on an overseas project for two years with verbal commitments of family relocation terms and assurance for written terms within a month. However, after one month, they refused to provide the written terms as promised. Consequently, he started looking for other options. The HR personnel are attempting to retain him without fulfilling their commitments, leading to the current issue.

There is currently no satisfactory response from the company's HR department, and the individual is avoiding legal notices as he prefers not to engage in conflict when leaving. He wishes to resolve the matter amicably without any complications.

This is the information I have. I will advise him to speak with you to discuss further steps. If you have any other suggestions for a resolution, they would be greatly appreciated. Of course, all the necessary proof regarding his employment, such as salary slips, PF statements, annual increment letters, promotion letters, and written transfer orders, are available.

Regards,

KIRAN ARORA

As far as I know, one can still amicably settle the issue without necessarily foregoing Gratuity. Gratuity is not a mere gratuity of the employer; it is statutorily payable to any employee if the minimum number of years served in an organization is 5 or more years (unless in the case of death where the period of service served is >1 and <5).

The only time Gratuity can be withheld is if any serious disciplinary issue is either pending or any serious breach of discipline has been proved to the detriment of the quitting or dismissed employee. This I am basing on my memory of the statute many years back since which I have since been working abroad. Kindly check the statutes (Payment of Gratuity Act) or wait for some more views for further clarifications.

Regards, M.A. Ganju

Dear Mr. Gangu,

Your views are absolutely correct. The employee should first try to get his gratuity amicably; otherwise, resort to legal action. It can be denied only on the grounds of major misconduct as per the standing orders applicable and also as per the Gratuity Act.

Regards,
Nilendra