Cooperative Bank Gratuity Confusion: Can Employees Claim for Extra Years?

Hi,

Sir, please clarify and suggest:

1) Is a cooperative bank employee eligible for gratuity?

2) A cooperative bank employee settled their gratuity on 30-06-2002 for retirement, but it was found to be incorrect. The employee approached the regional Registrar of Companies. According to the regional Registrar of Companies, an order was passed to extend it by two years, making it eligible until 30-06-2004. However, the cooperative bank is not providing the difference in gratuity for the additional two years.

In India, the Payment of Gratuity Act, 1972 is applicable to employees in co-operative banks. According to the Act, employees in co-operative banks are indeed eligible for gratuity upon meeting the criteria specified in the Act, such as completing five years of continuous service.

Regarding the specific case mentioned, where an employee settled their gratuity in 2002 but the correct retirement date should have been considered as 2004 as per the order from the regional Registrar of Companies, the cooperative bank should adhere to the extended period for calculating the gratuity amount. It is the responsibility of the cooperative bank to provide the difference in gratuity for the additional two years as directed by the regional Registrar of Companies.

To address this issue effectively:
- The employee should first formally communicate with the HR or management of the cooperative bank, providing the order from the regional Registrar of Companies as evidence.
- If the cooperative bank does not comply, the employee may seek legal assistance or guidance from the Labor Department to enforce the order and ensure the correct calculation and payment of the gratuity amount.

Ensuring compliance with legal directives and advocating for the rightful entitlements is crucial in such situations to protect the rights and benefits of employees in cooperative banks.