Can any legal case be done after legal notice to them for a.not providing DA and PF during so long years b.For not providing Gratuity amount?

Dear All,

I was working with a private university in U.P. governed by the U.P. Umbrella Act 2019, and due to Covid-19, they terminated my services. The details of the salary breakup are as follows:

- Basic: Rs 31,975
- HRA: Rs 15,987
- Conveyance: Rs 1,600
- Special Allowance: Rs 14,389

I worked for 14 years. There is no DA part in the salary sheet, and no PF deduction was done by the University. The remaining earned leave (EL) was 120.

Kindly calculate and provide the following details:
1. Salary for one month and 22 days
2. EL encashment amount
3. Amount of Gratuity
4. Can any legal action be taken after sending a legal notice for:
a. Not providing DA and PF for so many years
b. Not providing the Gratuity amount

5. Whom should I contact for Gratuity and PF? There was an off on Saturday and Sunday per week but not in all months of a year.

I would be grateful for your assistance.

Thank you and Best Regards.

Dear Manoj,

I have no idea about the U.P. Umbrella Act, 2019. However, I am sure any provision of such a State Law cannot run counter to the provisions of the Central Law like the Payment of Gratuity Act, 1972 on the same subject-matter so as to nullify it.

As per the provisions of Sec. 4 of the PGA, 1972, you are entitled to gratuity for the entire 14 years of service rendered. The formula for calculation is:

Last drawn basic pay / 26 x 15 x 14

Since you were a teacher, the encashment of EL on termination of employment depends on the leave rules of the educational institution or the provisions of any State Law applicable to private educational institutions in the State.

Better engage the services of a labor lawyer who will guide you to file a claim under the PGA, 1972 before the Controlling Authority under the Act.

Weekly holidays, all other holidays, and all authorized leave are included to compute continuous service under Section 2-A of the PGA, 1972.

Umakanthan Ji,

I assume you meant Last drawn (basic pay + DA) / 26 x 15 x 14?

Yes, Saswata. However, as there is no DA component in the wage structure mentioned in the post, I have taken the basic pay last drawn only for the purpose of calculation.

The Uttar Private University Act 2019 is an umbrella legislation enacted to bring and regulate all the existing and new private universities in the state of UP. There is no provision in it regarding the payment of salary and its components. So much help cannot be derived from it.

Since there is no legal right given in any statute to claim DA, a court case in the matter may not be fruitful. As regards PF, in case you had joined this university without being a member of the EPF Scheme, the non-membership of the Scheme is not in violation, as it appears you were drawing wages in excess of the ceiling limit as per the EPF Act 1952. As regards Gratuity, you can claim it by filing an application before the Controlling Authority under the PG Act 1972 (normally the Labour Officer of the local area where the University is located).

Umakanthan Ji,

Yes, you are right. I missed it in the original post 🙏🏽

Dear Manoj,

It would be better to lodge a case in court to claim your dues from the employer. The court shall decide the matter on its merit.

The claim for gratuity can be filed before the Controlling Authority or the Payment of Gratuity Act Assistant Labour Commissioner. For encashment of earned leave, if you are a "teacher", then your claim would not lie in the Labour Court. Otherwise, if you are a "workman", then move to the Labour Court under section 6H of the U.P. Industrial Disputes Act.

- S. K. Mittal
9319956443