Waiting for Gratuity Payment: How Long Should It Take and What Can I Do Next?

Dear All,

I worked at a company in Mumbai for 8 years. The company maintains the 'Gratuity' fund with LIC. I resigned from the company just five months ago, and until now, I haven't received my Gratuity settlement cheque.

Generally, how long does it take to receive the Gratuity amount from the resignation date? If I am not mistaken, it should take 30 days from the date of resignation to clear the dues. I have learned that my company has not yet forwarded my gratuity payment form to LIC.

Can anyone help me with this matter? Can I directly write a letter to the Controlling authority regarding this? If yes, could you please provide me with the address so that I can send a letter to collect my gratuity amount?

Thanks in advance.

S.K.

I have received your reply regarding the above matter. Please advise me on whom to submit the completed Form I for gratuity recovery.

Regards,
S.K.
Mumbai

Dear S.K.,

LIC takes approximately 10 days to transfer gratuity money into the employer's account if the employer has informed LIC of such liability. In case there is a delay beyond 30 days, the employer is liable to pay compounded interest as prescribed by the government on the accrued amount.

At every regional Income Tax office, there is an inspector responsible for gratuity-related cases. I would suggest you go and meet him and submit a written application. You need not worry about proceedings as that is the responsibility of the Inspector.

Dear SK,

Payment of Gratuity by the employer is not linked to the payment of the money invested by the employer in LIC or other institutions. It is for the easy mobilization of funds needed to pay the gratuity that the employer invests some amount in LIC or mutual funds. Whether the employer obtains it from LIC or elsewhere, they are liable to make payment to the employee. An employee is not supposed to approach LIC for their gratuity amount. Instead, they can submit a request in Form I to the employer. If the employer fails to pay the amount, the employee can send a representation to the Inspector appointed by the Government (State Govt.) for this purpose. Typically, the Deputy/Assistant Labour Commissioner will be the Inspector for this purpose. It's important to note that the Income Tax Inspector is not the individual responsible for dealing with gratuity payment cases. Any amount recoverable from the employer as gratuity can be realized as arrears of land revenue by initiating revenue recovery proceedings through the District Collector.

Regards,

Madhu.T.K