Struggling to Get My Gratuity After 6 Years: How Can I Ensure Fair Treatment?

I was working in a private company for the last 6 years and was covered under ESIC. My date of appointment in the company was 19/10/2011, and I left the company on 09 July 2018. I asked for gratuity from my company as my service period is 6 years & 7 months. The employer conveyed to me that as we received from LIC, we will give you. However, I don't have any LIC policy as such. Before this reply, I approached many times for gratuity. They are simply manipulating me. I even dropped emails, but they didn't respond to me yet regarding my gratuity.

As I approached the HR of our Head Office, he told me that when the director gives instructions, they will release the gratuity. So, what should I do? Kindly suggest -

What should I do?

1. What should I do?
2. Please suggest any legal action to be taken, if necessary?

They are treating every employee the same way, so please suggest a proper solution so that no one will get harassed. Looking forward to positive replies.

Please approach the Jurisdictional Controlling Authority/Assistant Labour Commissioner and submit your claim for gratuity, along with 10% interest per annum for belated payment, and all relevant documents.

You have already approached your employer, but your gratuity amount has not been paid till date. Normally, payment should be made within one month from the date of relieving from service. However, this has not been done. Hence, it is better to submit your claim for speedy disposal.

Hi Rashmi, as per your statement, it seems your employer has a tie-up with LIC under a Group Gratuity scheme. They have informed you that they are awaiting a cheque from LIC, which you have mistaken for them asking for an LIC policy from you. If they have indeed tied up with LIC under the Group Gratuity scheme and have paid premiums regularly, they should have cleared your gratuity quickly.

Now, as it is nearing one year, it's better for you to take the matter legally with the Assistant Commissioner of Labour in your region. Attach all the copies of email correspondence as proof. Your employer cannot evade this further.

Dear Friend,

Perhaps your company has a gratuity account with LIC, so they might be experiencing delays from LIC in crediting the amount to their trust account. In my opinion, it would be prudent to wait for some time for the claim to be processed.

It is not necessary for you to hold a policy to claim the gratuity; once the amount is approved by LIC, your company will issue a cheque for the payment.

If you suspect that the management is intentionally causing delays for everyone, I encourage you to step forward and address the issue to ensure the welfare of others.

Hi Ravi,

As per Rashmi, she was relieved on 9th July 2018. It is almost approaching one year. LIC should not take this long, provided they have cleared the premiums up to date. Most likely, the employer might have received the amount from LIC into their account but failed to disburse it or does not want to settle.

Hi Rashmi,

Please file a legal application with the Office of the Assistant Labour Commissioner in your area, including all proofs and documents. You should proceed with the process promptly, and after a month, you will definitely receive your gratuity.

Regards

Hello Sir,

Kindly suggest to me the action to be taken to release my gratuity amount. Please find attached the trailing mail information (where I gave a gentle reminder for gratuity to my ex-manager).

Thanks & Best Regards,
Rashmi

Hi,

As advised earlier, please file a case before the Assistant Commissioner of Labour in your region. It has been more than a year since you were relieved (09 July 2018). Submit all copies of the correspondence that took place between you and your employer.

Thank you.

Dear Sir,

Kindly suggest -

As I approached many times, the company told me that they have paid the LIC premium for the last 2 years, and the company cannot raise funds right now as they are in a financial crisis. They mentioned that you have until June 2020. We will do something. Earlier, they asked me to wait until October 2019.

What should I do? Kindly advise.

I apologize for asking multiple times, but the situations keep changing.

Thank you in advance.

Best Regards,
Rashmi

I have already advised on this. Tie up with the LIC Group Gratuity Scheme, and late commencement of the LIC Group Gratuity scheme can't be presented as a reason for the late payment of gratuity. Whether the employer pays gratuity directly or through the LIC Group Gratuity Scheme is the employer's choice, but gratuity has to be cleared within 30 days from the date of receipt of the request application for gratuity.

It's better you file a case with the Assistant Commissioner of Labour immediately and submit all relevant documents to him. The employer cannot unreasonably evade by asking for more time before the Controlling Authority. Please don't delay further.