Is My Wife Still Eligible for Gratuity After Leaving Her Job 7 Years Ago? Seeking Advice on Claiming It

Hi, my name is Ankit Panchal. I want to discuss my wife's case. Below is a detailed description.

Employment Details

My wife was working with an organization. She joined on 01/01/2005 and left on 20/09/2010, which is almost 5 years and 8 months. At that time, we didn’t know about gratuity. Recently, a few months ago, I learned from friends that the company had changed its name, and as a result, they provided gratuity to their employees. The company still exists.

Gratuity Eligibility and Claim

Now, my question is whether my wife, who left the organization almost 7 years ago, is eligible to ask for gratuity. If yes, what would be the amount? We don’t know what her salary was at that time. How can we claim it? If the company does not agree to provide us with the gratuity, how can we pursue it further?

Dear Ankit,

You can start with a simple notice to your employer stating non-receipt of gratuity. Let them reply. It is for the employer to calculate and pay gratuity within one month of separation of service failing, which interest is to be paid. There are several judgments of the High Court condoning the delay as well as sustaining the gratuity claim with interest. In the meanwhile, try to ascertain the last pay particulars which are needed. At any rate, you can make a claim on an approximate basis.

Basic rule for payment of gratuity

Any person eligible to receive gratuity shall make an application to the employer for payment within the prescribed time. Whether an application is made or not, the employer shall determine the amount payable and give notice to the eligible person(s).

Though time has passed, you can first write a letter by Speedpost (for proof of delivery) stating that you are entitled to gratuity. Provide details of employment such as the date of joining and leaving, etc., and request them to pay the amount.

In case of delay, refusal, etc., approach the Labour Commissioner, who is generally the Controlling Officer for non-payment of gratuity cases.

Employee Gratuity Claims: A Guide

The employee claim never dies, even after the death of the employee. There is no delay in making the claim; you can do it today. Write to the employer stating that the gratuity was not paid at the time of leaving and, therefore, should be paid at the earliest. Wait for 10 days, and if you do not receive any positive reply, write to them again on the eleventh day. This time, mention that if it is not paid within 10 days of the receipt of the letter, you will be forced to take whatever legal recourse is available.

In fact, it is the duty of HR to inform the employee at the time of exit about their eligibility for gratuity and the formalities to be completed. It is the responsibility of the employer to pay, even if the employee has not raised a demand or is not aware. If the company remains silent or does not pay, please approach the office of the Labour Commissioner, who is the Gratuity Authority, and lodge a formal complaint.

Please note that you are entitled to interest at 12% per annum under the Payment of Gratuity Act.

Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

Gratuity Claim Process

Yes, she can claim gratuity. She can either personally or through her authorized representative send a written application to the employer for the payment of gratuity. If the gratuity amount is not paid by the employer within the specified period, the employer shall pay simple interest at a rate not exceeding the rate notified by the Central Government for the repayment of long-term deposits, from the date the gratuity becomes payable to the date of payment, as specified by the Government. No interest shall be payable if the delay in payment is due to the fault of the employee, and the employer has obtained written permission from the controlling authority for the delayed payment on this ground.

If the employer is still unwilling to pay, you must approach the Labor Department of the concerned district or state with all the details in writing.

Thanks & Regards,

Sumit Kumar Saxena