Is It Fair for Naaptol to Fire Employees Without Gratuity After 4 Years?

raman-agarwal
Naaptol Online Shopping Ltd is firing all its employees because they are going to streamline their processes and open a new center in another city. The company is not providing any compensation or gratuity amount.

I have completed 4 years and 11 months in the organization.

Please help me understand if I am eligible for gratuity and compensation.
manojkamble
Hi,

You should approach the labor commissioner of your area and submit a written complaint against your company. They will surely help you. Also, take some legal advice for filing a complaint against your company.
umakanthan53
Jurisdiction for Statutory Redress

The place of employment of the employee determines the jurisdiction of the forum for statutory redress under any labor law in case of any violation relating to service conditions by any employer. Termination of the employment of a workman under the Industrial Disputes Act, 1947, by the employer in breach of the contract of employment amounts to an industrial dispute. This can be raised directly by the affected workman himself under Section 2-A(1) of the Act before the Conciliation Officer for the area in which the workman was last employed.

Gratuity and Service Conditions

Similarly, gratuity is a service condition governed exclusively by the Payment of Gratuity Act, 1972, which has Controlling Authorities across the country for the disposal of claims relating to gratuity under the Act. In cases where employees of an establishment, like the poster, are nearing the completion of the minimum qualifying period of not less than five years of continuous service, the management is alleged to terminate them under some pretext to deprive them of their gratuity. The employees can make a joint representation to the State Labor Commissioner, which would at least act as a moral deterrent on the management and compel them to come to terms.

Filing Claims for Gratuity

Additionally, already terminated employees who have rendered not less than 240 days of service in their 5th year can file their claims for gratuity, together with interest, before the respective Controlling Authority for the area. They are eligible for and entitled to gratuity under the Act. It is advisable to jointly engage the services of an experienced advocate who would take care of the legal formalities.
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