Dear Rajesh,
From your reply, I take that though the amount of gratuity was shown in the gross salary, no deduction was made in this regard so as to construe that employee's contribution was collected by the management.
Normally gratuity shall be payable to an employee on the termination of his employment.As per Sec.7(3) of the PG Act,1972 the employer has to pay the amount of gratuity within 30 days from the date it becomes payable. Sub-section (3-A) mandates levy of interest for the period of default. Therefore, if your friend's gratuity is not paid within 30 days from the date of his relief on acceptance of his resignation by the management waiving notice period, they have to pay him simple interest @ 10% p.a for the entire period of delay.
His last-drawn basic being Rs.10000/= and the qualifying service after rounding up is 6 years, the gratuity payable would be Rs.34,615-00.
If the gratuity is not all paid or any amount is paid less based on wrong calculation or without interest for the period of delay, your friend can file a claim before the Controlling Authority for the area in which his establishment is situated. His present place of residence is irrelevant. In such a situation let your friend engage the services of an advocate.
From your reply, I take that though the amount of gratuity was shown in the gross salary, no deduction was made in this regard so as to construe that employee's contribution was collected by the management.
Normally gratuity shall be payable to an employee on the termination of his employment.As per Sec.7(3) of the PG Act,1972 the employer has to pay the amount of gratuity within 30 days from the date it becomes payable. Sub-section (3-A) mandates levy of interest for the period of default. Therefore, if your friend's gratuity is not paid within 30 days from the date of his relief on acceptance of his resignation by the management waiving notice period, they have to pay him simple interest @ 10% p.a for the entire period of delay.
His last-drawn basic being Rs.10000/= and the qualifying service after rounding up is 6 years, the gratuity payable would be Rs.34,615-00.
If the gratuity is not all paid or any amount is paid less based on wrong calculation or without interest for the period of delay, your friend can file a claim before the Controlling Authority for the area in which his establishment is situated. His present place of residence is irrelevant. In such a situation let your friend engage the services of an advocate.