How Can I Claim Gratuity After Being Let Go Due to My Department's Closure?

I was working as a permanent faculty member in a private state university in Gujarat for 4 years, 11 months, and 3 days. I was relieved in May 2015 after a 3-month notice period due to the closure of my department and institute. However, the university is still operating at the same location and has started another institute that does not require my qualifications. The university did not provide me with gratuity, stating that I did not have "5 years of service." I did not resign but was relieved due to the closure of my department. The deficient in-service days would have been covered by my vacation period if my employment had continued. I also presented them with the judgments of the honorable Madras High Court (Mettur Beardsell Ltd case) and the honorable Supreme Court (Surendra Varma case of 1980). However, they requested me to provide relevant and recent judgments from either the honorable Gujarat High Court or the Supreme Court, as they do not consider judgments from other states due to potential revisions. Kindly advise me on what steps to take and share any relevant judgments from the honorable Gujarat High Court or the Supreme Court. Thank you in advance.

Dear Anamika,

Please contact the jurisdictional Controlling Authority, i.e., Assistant Labour Commissioner, together with all relevant documents immediately. The Authority will adjudicate the matter. In support of your claim, you rely on the judgments to which you have referred.

Thank you, Mr. Srinath Sai Ram, for your quick response. What do you suggest, sir? Should I use professional legal paid services for filing this case in the labor office, or should I fight it on my own? The case may go on for a few months, requiring frequent visits to the labor office.

Please approach the labor office first. Sometimes one or two visits ensure that the job is done. Hiring lawyers will be costly. Wait for some time.

Hello,

Your case is strong and should be presented before the controlling or appellant authority under the statute. You have worked for 4 years and more than 240 days in the same institute, and you were asked to resign as you were redundant.

You may seek help from a local legal practitioner who can assist you in creating a strong representation with facts and citations.

Regards,
Gajendra Verma

Hi, Mr. Nathrao has a valid point. Approach the ALC first; you may find a resolution then and there. Why hire a legal practitioner initially? If no solution is reached, you always have the option to go to court.

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Please let me know if you need any further assistance with this matter.

For every problem, seek the simplest and most direct solution. First, approach the company with problems. If not resolved, then approach the concerned labor officer. The court should be the last resort. Legal proceedings can be expensive and time-consuming. It is quite possible that you may end up spending more money on lawyer fees than the gratuity itself.

Hope the querist gives feedback. Has he approached the Labour Commissioner of the area?

Advice is given by many learned members, and the result of the advice needs to be known to all readers of the forum.

Steps Taken So Far

Thanks a lot to all of you for your valuable suggestions.

Steps I have taken to date (Teaching Employment period: June 2010 - May 2015; 29 days less in 5 years of service):

1) Sent a request letter demanding gratuity (and also quoted the Supreme Court judgment of Surendra Verma) to the university's Executive Registrar through a personal visit in November 2017. (No response obtained yet)

2) Sent the "Form I" of the Gratuity Act for demanding gratuity to the university's Executive Registrar through registered post with A.D. in December 2017. (No response obtained yet)

3) Sent the "RTI Form" for obtaining information from the Director of Labor, Department of Labor and Employment, Gandhinagar Head Office, Government of Gujarat regarding:
a) Provide details of cases similar to my case which came to the Labor Department.
b) Important judgments of the Supreme Court and High Court used by the Labor Department for solving such cases;
Through a personal visit in December 2017. (No response obtained yet)

Next Steps and Compensation Inquiry

What should be my next set of actions? Can I also demand cessation or retrenchment compensation? Although I was provided with 3 months (less 2 days) of notice period as I was a permanent employee, I remained unemployed for a few months after being relieved.

Dear Adindi,

Now, without any further delay, approach the Controlling Authority and file your petition. In the petition, mention that the University did not pay gratuity on the grounds that your service was less than 5 years. Whereas, now you are filing your petition relying on the Chennai High Court Judgment. Please mention in your petition that you are liable for interest at 10% per annum from the date of relieving from service. Please do not focus more on RTI.

Finally, the controlling authority has called us for a hearing. I am willing to fight it on my own without any advocate. I also came to know about a judgment of Sreeja B. v. Regional Joint Labour Commissioner And Ors.
COURT: KERALA HIGH COURT DATE: 5th March 2015
Any tips or suggestions?

Settlement Advice for Gratuity Case

Thanks for all your quick support and motivation. Finally, I received a call from the university advocate to settle the gratuity case outside the labor court, after frequent visits to the court. They agree to pay a cheque with just the actual gratuity amount and not the penalty, which as per the Gratuity Act, is 10% simple interest of the gratuity amount per year, i.e., for 3 years. They will also make me sign an agreement on Rs. 20 stamp paper stating that all my dues are cleared and the full and final settlement is done. They mentioned that if I want the penalty amount, I should be prepared to fight till the high court and supreme court.

So, the last piece of advice I require is as follows: Should I settle the case with just the gratuity amount (without the penalty amount) or bear the burden of high court expenses for the penalty amount? Should I sign the agreement stating all dues are cleared? Will the amount I receive as a settlement be tax-free, or do I need to obtain some kind of letter from the university confirming it is a gratuity amount?

Thanks.

Dear Adindi,

Grab it immediately. Give whatever documents asked for. Your case is not on merit in my view on the ground of Madras HC judgment and the Supreme Court judgment as quoted by you. The judgment of Madras HC has no binding force in Gujarat State. The Supreme Court judgment as quoted by you does not pertain to the POG Act. You had only one ground to fight. You were discharged from your duties due to the closure of your department. Don't take time to make a decision.