Is My Company Right to Deny Gratuity After Nearly 6 Years of Service?

I worked in a Pvt. Ltd. company for 5 years and 10 months. When I applied for gratuity, they replied that they had not applied for the gratuity and they did not deduct any amount from the salary related to gratuity. Therefore, they are not bound to pay the gratuity. Is it right?

Either your previous company is ignorant about the law, and their HR team is negligent, or they are trying to deceive you. There are enough posts on this subject on the forum; you can search at the top (search button).

Understanding Gratuity

Basically, gratuity is an amount that the employer needs to pay the employee who has worked for a continuous period of 5 years or more. It is not deducted from the salary and needs to be paid as an additional amount during settlement when the person leaves the organization.

Filing a Complaint

You can file a complaint against them with the authority under the Gratuity Act, who is generally the Chief Labour Commissioner of the area.

In addition to Saswata and Rao, I also note that the company is misleading you and you are entitled to payment of gratuity for six years of service.

Thanks & Regards,

Sumit Kumar Saxena

Steps to Claim Gratuity

Apart from what others have mentioned above, please claim your gratuity by filing Form I with the company, giving them one month's time. If they fail to pay the gratuity within one month, approach the controlling authority under the Payment of Gratuity Act, 1972, with Form N. Please note that you have to submit Form I within a month from the last date of work and Form N within the next three months; otherwise, you will need to file a condonation of delay petition along with Form N.

You can check my blog at www.labourlawhub.com for more information on labor laws.

Regards

Dear Mr. Sanjay,

What other learned members like Mr. Nathrao, Mr. Saswata Banerjee, Mr. Sumit Saxena, and Mr. Ritesh Maity have said, I concur with them. However, one thing they might have overlooked is the number of employees in your organization. If the number is below 10 (ten), then the company can avoid your gratuity claim.

Seniors, please correct if the above statement needs to be amended.

Regards

No employee needs to apply to claim gratuity payment. It is the obligation of the employer to give the gratuity amount to the concerned employee within a month. After one month, if any employer does not pay the gratuity amount, then he is liable to pay the whole amount with interest.

So, it is the obligation of the employer.

Regards,
Dinesh Kumar

Go and file a case in the Central Labour Office. They will automatically clear your gratuity, and the company will also be penalized for this activity.

Hi Sanjay,

The company is liable to pay you gratuity if you have completed 5 years of service. For gratuity, no deduction from the employee's compensation is required. I suggest referring to the Gratuity Compliance Wiki - The Payment of Gratuity Act, 1972 [url=http://stacowiki.in/en/acts/st-central/the-payment-of-gratuity-act1972/].