Struggling with Gratuity Claims: How Should I Handle This Employee Complaint?

I run a small software company in Ernakulam. We were 15 employees, and last year the company incurred losses. Due to the losses that occurred, I was not able to make payments to some of my employees, and they left the job. Those who left the job, I have settled all their dues. Now, we are catching up with the storm and currently have 10 employees whom I have taken on as trainees (freshers).

One of my employees who was working with us for 6.7 years has gone to the labor office and registered a complaint, mentioning that we have not paid him gratuity. He resigned from the firm in January 2018, and the complaint was filed on May 5, 2018, after we paid him all his pending salaries.

I was not aware of gratuity terms, and neither has he sent us any kind of request for the same. Please guide me on this.

Regards, Anna.

Dear friend,

Ignorance of the law cannot be an excuse. Similarly, gratuity, being an inalienable service right of an employee upon termination, cannot be denied on the basis of no claim or a belated claim. It is recommended to calculate the gratuity based on the sum of the employee's last drawn basic salary and D.A., and deposit it with the Controlling Authority under the Payment of Gratuity Act, 1972, along with simple interest at 10% per annum up to the date of deposit.

What are the documentary evidence to prove that he worked for 6.5 years in your establishment that you feel the ex-employee would have? When you have settled their accounts, what were the wordings in the settlement voucher for the employee?