Am I Entitled to Gratuity After 6 Years in IT? Seeking Advice on Employer's Refusal

I have served for over 6 years in an IT company in the Product Support team in Bangalore. The company is a Pvt Ltd. When I asked my employer about Gratuity, they said that it was not part of the salary structure in the 'Company'. I agree that there was nothing documented about Gratuity. It was expected to be a significant amount since there was no PF, as it was a small-sized company. Now, I have the following questions.

Eligibility for Gratuity

1. Am I eligible for Gratuity?

Financial Status and Gratuity

2. Is there any rule that Gratuity will not be considered if the company's financial status is not good?

Mandatory Gratuity Payment

3. Is it mandatory to pay Gratuity even though there is no written document available regarding Gratuity?

Steps to Claim Gratuity

4. If my ex-employer has to pay the Gratuity, how should I proceed further to get the Gratuity as the ex-employer is not ready to pay it?

Gratuity Payment Obligations

If there are more than 10 employees, the company is legally bound to pay gratuity. You can write a formal letter asking for gratuity. Whether gratuity was mentioned or not is not important. The fact that the company is having financial problems is not relevant to meeting statutory requirements. Gratuity is never part of the salary structure as it is purely a company obligation that they have to meet from their funds or take a suitable insurance policy, such as group gratuity policies. If they fail to reply, complain to the nearest Labour Commissioner under whose jurisdiction the office or factory falls. They will intervene and assist.

You are squarely eligible for gratuity as per the information provided by you. You need to make an application in Form-7(2) to claim your gratuity from your employer and forward a copy to the local labour office via registered post. If the amount of gratuity is not paid by your employer within the prescribed time, you have the right to file a complaint with the Controlling Authority under the Payment of Gratuity Act within the area where the employer’s establishment is situated or where you were working at the time of leaving.