An employee in a company had served for 6 years and had resigned from the organization after serving for 6 years in 2011. The company had sent him a notice asking him to resume the job; otherwise, the job would be terminated, and accordingly, the job of that person was terminated. However, the gratuity remains unpaid to that person. In this case, what would be the implications or liability for non-payment of gratuity?
From India, Mumbai
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From India, Mumbai
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Understanding the Payment of Gratuity Act
The Payment of Gratuity Act does not authorize an employer to withhold gratuity from an employee for any reason, such as negligence or unauthorized leave, except in cases where the employee's services are terminated due to willful omission or negligence that results in damage, loss, or destruction of the employer's property, riotous or disorderly behavior, or any act involving moral turpitude committed during employment.
Consequences of Non-Payment of Gratuity
In case an employer fails to pay gratuity, they may face the following consequences: imprisonment for a term of not less than 3 months and up to 1 year, or a fine ranging from Rs. 10,000 to Rs. 20,000, or both.
Regards,
Arun J.
From India, Hyderabad
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191The Payment of Gratuity Act does not authorize an employer to withhold gratuity from an employee for any reason, such as negligence or unauthorized leave, except in cases where the employee's services are terminated due to willful omission or negligence that results in damage, loss, or destruction of the employer's property, riotous or disorderly behavior, or any act involving moral turpitude committed during employment.
Consequences of Non-Payment of Gratuity
In case an employer fails to pay gratuity, they may face the following consequences: imprisonment for a term of not less than 3 months and up to 1 year, or a fine ranging from Rs. 10,000 to Rs. 20,000, or both.
Regards,
Arun J.
From India, Hyderabad
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The Employer is bound to pay the gratuity in the present case. no other option is available under the law.
From India, Pune
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From India, Pune
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Thank You sir for you reply Company is ready to pay but how and to whom to be paid as the employee is not approaching toward the company for his gratuity payment. Regards, Sonam
From India, Mumbai
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From India, Mumbai
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The employee is eligible for gratuity, and the company needs to release the amount of gratuity. If the employee is not approaching the company, the company may send him a registered letter explaining the situation and the employee's benefit, and request him/her to receive his gratuity.
Regards,
Prabhat
From India, Mumbai
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Regards,
Prabhat
From India, Mumbai
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I agree with Prabhat. Its Employers moral duty to intimate the employee about his gratuity. if he doesnot approach then deposit his graduity in his A/c.
From India, Hyderabad
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From India, Hyderabad
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Provision for Gratuity Payment
In my view, there is a provision in the act which states that the employee or his authorized representative/nominee has to apply to receive the gratuity amount. The employer is required to pay it within the stipulated time (30 days) upon receipt of the application. This provision is detailed in "Section 7."
In normal circumstances, the employer pays it to the employees without even taking a formal application. However, in cases where the employee is absconding or in cases of death, it is in the interest of the employer to ensure proper documentation is completed before releasing any payments.
Regards,
Preetam Deshpande
From India, Mumbai
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In my view, there is a provision in the act which states that the employee or his authorized representative/nominee has to apply to receive the gratuity amount. The employer is required to pay it within the stipulated time (30 days) upon receipt of the application. This provision is detailed in "Section 7."
In normal circumstances, the employer pays it to the employees without even taking a formal application. However, in cases where the employee is absconding or in cases of death, it is in the interest of the employer to ensure proper documentation is completed before releasing any payments.
Regards,
Preetam Deshpande
From India, Mumbai
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Gratuity is to be paid to the nominee only in the case of the death of the employee. If the employee is absconding, the employer cannot pay the gratuity to the nominee on its own. If the employee is not traceable and you have all proof of the same, then deposit the gratuity amount with the Controlling Authority. The Gratuity Act clearly provides an option to the employer of depositing the gratuity amount with the Controlling Authority in case of any dispute, including when there is a dispute 'as to the person entitled to receive the gratuity'. If you delay the matter, you will have to pay interest on the payable gratuity amount.
I hope your doubts are cleared.
Regards,
Kamal
From India, Pune
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I hope your doubts are cleared.
Regards,
Kamal
From India, Pune
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Following are the provisions under the Payment of Gratuity Act, 1972, for non-payment of gratuity:
Penalties
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with a fine which may extend to [ten thousand rupees], or with both.
(2) An employer who contravenes or makes default in complying with any of the provisions of this Act or any rule or order made thereunder shall be punishable with imprisonment for a term [which shall not be less than three months but which may extend to one year, or with a fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both]:
Provided that where the offense relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offense, for reasons to be recorded by it in writing, is of the opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice.
So, clear his gratuity payment as soon as possible.
With Regards,
Vineet Deshmukh
From India, Yavatmal
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Penalties
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with a fine which may extend to [ten thousand rupees], or with both.
(2) An employer who contravenes or makes default in complying with any of the provisions of this Act or any rule or order made thereunder shall be punishable with imprisonment for a term [which shall not be less than three months but which may extend to one year, or with a fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both]:
Provided that where the offense relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offense, for reasons to be recorded by it in writing, is of the opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice.
So, clear his gratuity payment as soon as possible.
With Regards,
Vineet Deshmukh
From India, Yavatmal
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I have seen the replies of senior members with various suggestions giving references to varied solutions besides penal provisions applicable in case of non-payment of gratuity under the Payment of Gratuity Act 1972. You are advised to take the following steps to obviate the blame for the non-payment of gratuity to the individual:
(i) Calculate the amount of gratuity payable to the individual and send a notice in the prescribed form to him, at the present and permanent addresses as recorded in his service book or available in any of the records, with a copy to the Controlling Authority of the Area specifying the amount of gratuity calculated.
(ii) Simultaneously write an application to the Controlling Authority of the Area showing your willingness to deposit the amount of gratuity in respect of the individual with the Authority or obtain permission for the delayed payment on the grounds that the individual has not claimed the gratuity amount, so that you receive immunity from paying interest on delayed gratuity payment later on.
(iii) As an extra precaution, you may display a copy of the notice on your notice board so that the word spreads to him through his colleagues.
Regards,
BS Kalsi
From India, Mumbai
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(i) Calculate the amount of gratuity payable to the individual and send a notice in the prescribed form to him, at the present and permanent addresses as recorded in his service book or available in any of the records, with a copy to the Controlling Authority of the Area specifying the amount of gratuity calculated.
(ii) Simultaneously write an application to the Controlling Authority of the Area showing your willingness to deposit the amount of gratuity in respect of the individual with the Authority or obtain permission for the delayed payment on the grounds that the individual has not claimed the gratuity amount, so that you receive immunity from paying interest on delayed gratuity payment later on.
(iii) As an extra precaution, you may display a copy of the notice on your notice board so that the word spreads to him through his colleagues.
Regards,
BS Kalsi
From India, Mumbai
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It is intriguing that the employee is not coming forward to collect the gratuity amount. But is the employee traceable? If yes, then send a registered letter in the form of a notice as specified in the Gratuity Act. If the employee does not come, the employer cannot help. If the employee is not traceable, then legally all parties have to wait for 8 years. If even after 8 years the employee is not found, then the amount of gratuity is to be paid to the nominee whom the employee had nominated in Form F. If there is no nomination, then the employer has to wait for a claimant for the gratuity amount. When anyone approaches for the gratuity amount, advise that person to go to court and obtain a letter of probate. The employer need not decide who the legal heirs are; let the Court make that determination.
Regards,
Vibhakar Ramtirthkar.
From India, Pune
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Regards,
Vibhakar Ramtirthkar.
From India, Pune
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The problem can be resolved by writing to the employee concerned with a copy to the Controlling Authority under the Payment of Gratuity Act, clearly indicating your intention to pay the gratuity amount. However, the employee appears to be uninterested (please see Section 7(2)). Further, Sub-section 3 clearly states that where the delay is on the part of the defaulting employee, then no liability is attached to the employer.
Another option is to deposit the amount with the Labour Welfare Fund authorities. Please check the state law applicable, as any unpaid amount to an employee could be paid to the Labour Welfare Fund authorities after the prescribed waiting period is over. The employer will be free of any liability thereafter.
Thank you.
From India, Bhopal
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Another option is to deposit the amount with the Labour Welfare Fund authorities. Please check the state law applicable, as any unpaid amount to an employee could be paid to the Labour Welfare Fund authorities after the prescribed waiting period is over. The employer will be free of any liability thereafter.
Thank you.
From India, Bhopal
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I concur with Mr. Kalsi. However, in view of the rejection of the resignation and the subsequent penal termination of the employee's services due to unauthorized absence, you should have arranged payment of his gratuity as calculated by you before the expiry of 30 days from the date of dismissal. As suggested by Mr. Kalsi, immediately obtain the permission of the C.A. as per the proviso to S.7(3A). In addition, deposit the amount of gratuity as per your calculation with the C.A. forthwith as per S.7(4)(a) to avoid interest and other penal actions.
From India, Salem
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From India, Salem
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I have gone through the comments of all the members. It is the statutory obligation of the employer to pay gratuity on time to the employee. If the employee concerned did not apply or is not traceable, the employer must prepare his/her gratuity in the prescribed form and deposit the same to the Controlling Authority. Failing to do so will attract the imposition of a fine and penalty.
From India, Koraput
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From India, Koraput
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Make a note of it in the unpaid wages register. Send him a notice by registered post asking him to come for his full and final settlement. If he does not come, then after 3 years, you have to deposit the money in the labor welfare fund of your state. You may deduct from the gratuity amount any dues the employee has towards the company, including the value of the short notice period.
Regards,
Sonam
From India, Mumbai
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Regards,
Sonam
From India, Mumbai
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Understanding Gratuity Under the Payment of Gratuity Act
1. Under the Payment of Gratuity Act, an employer cannot keep or hold the payable gratuity under any circumstances.
2. If there is any dispute, the employer must deposit the payable gratuity with the Controlling Authority.
3. The present case is also a dispute under the Payment of Gratuity Act.
4. The employer cannot deposit the payable gratuity in the Labor Welfare Fund without exploring the options available under the Payment of Gratuity Act, which includes involving the Controlling Authority in the whole process of gratuity payment to anyone.
5. If the Controlling Authority returns the deposited payable gratuity to the employer, then only the option of depositing the gratuity in the LWF arises; otherwise, it does not.
6. No amount can be deducted from the calculated gratuity in the present case, as the Payment of Gratuity Act clearly provides that the gratuity payable to an employee may be wholly or partially forfeited only under the following conditions: if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or if the services of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
Gratuity is a protected benefit and cannot be attached even in the execution of any decree or order of the civil or criminal court.
Regards,
Kamal
From India, Pune
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1. Under the Payment of Gratuity Act, an employer cannot keep or hold the payable gratuity under any circumstances.
2. If there is any dispute, the employer must deposit the payable gratuity with the Controlling Authority.
3. The present case is also a dispute under the Payment of Gratuity Act.
4. The employer cannot deposit the payable gratuity in the Labor Welfare Fund without exploring the options available under the Payment of Gratuity Act, which includes involving the Controlling Authority in the whole process of gratuity payment to anyone.
5. If the Controlling Authority returns the deposited payable gratuity to the employer, then only the option of depositing the gratuity in the LWF arises; otherwise, it does not.
6. No amount can be deducted from the calculated gratuity in the present case, as the Payment of Gratuity Act clearly provides that the gratuity payable to an employee may be wholly or partially forfeited only under the following conditions: if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or if the services of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
Gratuity is a protected benefit and cannot be attached even in the execution of any decree or order of the civil or criminal court.
Regards,
Kamal
From India, Pune
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Gratuity and Partial Forfeiture
Gratuity is not a protected benefit like PF. The concept of partial forfeiture is where the company is allowed to refuse to pay gratuity, typically when the employee has committed a serious offense such as fraud. However, once the amount is payable, the company can deduct amounts owed by the employee to the company. In the case of PF, it is different. The entire amount has to be given directly to the employee, and nothing can be recovered from that amount.
Depositing with the Controlling Authority
Regarding depositing with the controlling authority, you may be correct. I had not considered that option. However, there is no dispute here. The employee has not filed the application for gratuity and has not come for his full and final settlement. The employer is not disputing the amount payable.
Payment of Gratuity Act Compliance
Under the Payment of Gratuity Act, the employer cannot withhold the payable gratuity under any circumstances. In case of any dispute, the employer must deposit the payable gratuity with the Controlling Authority. The present case is also a dispute under the Payment of Gratuity Act. The employer cannot deposit the payable gratuity in the Labor Welfare Fund without exploring the options available under the Payment of Gratuity Act, which includes involving the Controlling Authority in the entire process of gratuity payment to anyone.
No amount can be deducted from the calculated gratuity in the present case as the Payment of Gratuity Act clearly provides that the gratuity payable to an employee may be wholly or partially forfeited only under specific conditions. Gratuity is a protected benefit and cannot be attached even in the execution of any decree or order of the civil or criminal court.
Regards,
Kamal
From India, Mumbai
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Gratuity is not a protected benefit like PF. The concept of partial forfeiture is where the company is allowed to refuse to pay gratuity, typically when the employee has committed a serious offense such as fraud. However, once the amount is payable, the company can deduct amounts owed by the employee to the company. In the case of PF, it is different. The entire amount has to be given directly to the employee, and nothing can be recovered from that amount.
Depositing with the Controlling Authority
Regarding depositing with the controlling authority, you may be correct. I had not considered that option. However, there is no dispute here. The employee has not filed the application for gratuity and has not come for his full and final settlement. The employer is not disputing the amount payable.
Payment of Gratuity Act Compliance
Under the Payment of Gratuity Act, the employer cannot withhold the payable gratuity under any circumstances. In case of any dispute, the employer must deposit the payable gratuity with the Controlling Authority. The present case is also a dispute under the Payment of Gratuity Act. The employer cannot deposit the payable gratuity in the Labor Welfare Fund without exploring the options available under the Payment of Gratuity Act, which includes involving the Controlling Authority in the entire process of gratuity payment to anyone.
No amount can be deducted from the calculated gratuity in the present case as the Payment of Gratuity Act clearly provides that the gratuity payable to an employee may be wholly or partially forfeited only under specific conditions. Gratuity is a protected benefit and cannot be attached even in the execution of any decree or order of the civil or criminal court.
Regards,
Kamal
From India, Mumbai
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Deductions from the gratuity amount as per the calculation formula given in the Payment of Gratuity Act are only possible under the strict conditions specified in the Act. An employer cannot deduct any amount from the calculated gratuity under any condition other than those mentioned in the said Act.
Protected benefit does not mean that the amount payable should be with a third party and not with the employer (as you have given the example of PF benefits). Gratuity is a protected benefit because it has been given protection under Section 13 of the Act, which states, "Gratuity of an employee cannot be attached under any decree by court or any kind of payment," and this has been upheld by several High Courts and the Hon. Supreme Court of India.
There are several cases and judgments in which the court gave a very clear view that "Withholding or Adjustment of Gratuity is not permissible under any circumstance other than those mentioned in Section 4(6) of the Act; otherwise, the amount towards gratuity shall stand protected under Sec.13 of the Act," and this is the legal position of the matter as of now.
I would request you to go through the cases Yada Lakmi Vs A.P State Co. Bank LLR 2008 (108), K.C Mathew Vs Plantation Corporation Kerala LLR 2001(123) Ker, Panchmahal District Co-Operative Bank Limited – Petitioner Vs Harjivandas Purshottamdas Prajapati – Respondent, Gujarat High Court.
In Ram Ranjan Mukherjee Vs Mining and Allied Machinery Corporation Ltd 2001 LLR 297 (Cal HC), the court held that "even if a workman gives an undertaking for making deductions, the gratuity of an employee cannot be withheld."
Your contention that "there is no dispute here. The employee has not filed the application for gratuity and has not come for his full and final settlement. The employer is not disputing the amount payable." I would say there is a DISPUTE from the legal point of view as the intervention of the Controlling Authority is required to settle the issue.
Let's not misinterpret and twist the provisions of law. Interpretations are done by the competent court of law, not by us.
Regards,
Kamal
From India, Pune
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Protected benefit does not mean that the amount payable should be with a third party and not with the employer (as you have given the example of PF benefits). Gratuity is a protected benefit because it has been given protection under Section 13 of the Act, which states, "Gratuity of an employee cannot be attached under any decree by court or any kind of payment," and this has been upheld by several High Courts and the Hon. Supreme Court of India.
There are several cases and judgments in which the court gave a very clear view that "Withholding or Adjustment of Gratuity is not permissible under any circumstance other than those mentioned in Section 4(6) of the Act; otherwise, the amount towards gratuity shall stand protected under Sec.13 of the Act," and this is the legal position of the matter as of now.
I would request you to go through the cases Yada Lakmi Vs A.P State Co. Bank LLR 2008 (108), K.C Mathew Vs Plantation Corporation Kerala LLR 2001(123) Ker, Panchmahal District Co-Operative Bank Limited – Petitioner Vs Harjivandas Purshottamdas Prajapati – Respondent, Gujarat High Court.
In Ram Ranjan Mukherjee Vs Mining and Allied Machinery Corporation Ltd 2001 LLR 297 (Cal HC), the court held that "even if a workman gives an undertaking for making deductions, the gratuity of an employee cannot be withheld."
Your contention that "there is no dispute here. The employee has not filed the application for gratuity and has not come for his full and final settlement. The employer is not disputing the amount payable." I would say there is a DISPUTE from the legal point of view as the intervention of the Controlling Authority is required to settle the issue.
Let's not misinterpret and twist the provisions of law. Interpretations are done by the competent court of law, not by us.
Regards,
Kamal
From India, Pune
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I stand corrected on the concept of protected payment. I have not checked the relevant court decisions, but I assume you must be well acquainted with that.
Gratuity Application Process
The act requires the employee to apply for gratuity, for which there is a relevant form (Form I). The employee has not filed the form. The employer is not disputing the amount or that it is payable. The provision of the act, as far as I recall, says once you get Form I, you have to send a notice of payment showing how much is payable, the computation, and the date by which it will be paid (within 30 days). So, if the employee has not applied and has not come to do his full and final settlement, does the employer still need to deposit this with the authority?
From India, Mumbai
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Gratuity Application Process
The act requires the employee to apply for gratuity, for which there is a relevant form (Form I). The employee has not filed the form. The employer is not disputing the amount or that it is payable. The provision of the act, as far as I recall, says once you get Form I, you have to send a notice of payment showing how much is payable, the computation, and the date by which it will be paid (within 30 days). So, if the employee has not applied and has not come to do his full and final settlement, does the employer still need to deposit this with the authority?
From India, Mumbai
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Employer's Obligation for Gratuity Payment
It is obligatory on the part of the employer to pay gratuity within 30 days of the employee leaving. Not receiving Form I cannot be an excuse for a delay in the gratuity payment. If the employee is not traceable, the employer should deposit the amount (calculated as per the formula given in the Payment of Gratuity Act) with the Controlling Authority; failing which, the employer has to pay interest.
Delay in the payment of gratuity under any circumstances, except as directed by the Controlling Authority, amounts to contravening the provisions of the Act.
Regards,
Kamal
From India, Pune
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It is obligatory on the part of the employer to pay gratuity within 30 days of the employee leaving. Not receiving Form I cannot be an excuse for a delay in the gratuity payment. If the employee is not traceable, the employer should deposit the amount (calculated as per the formula given in the Payment of Gratuity Act) with the Controlling Authority; failing which, the employer has to pay interest.
Delay in the payment of gratuity under any circumstances, except as directed by the Controlling Authority, amounts to contravening the provisions of the Act.
Regards,
Kamal
From India, Pune
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I have gone through the posts of learned seniors who have all suggested solutions that are relevant. I would like to add that gratuity is a very much protected retiral benefit like P.F. and is considered as the right vested by the Act in the employees to the property held in trust for them by the employer, but not a bounty to be given out of grace. Therefore, the employer cannot adjust any dues of the employer or any loss to him against gratuity except in the way permissible under the Act.
The queriest has only said that the employee is not approaching him for gratuity. He has not stated what efforts he made to trace him. The employer cannot unilaterally jump to a finding that the employee is not approaching or contacting him or not traceable without actually making efforts to trace him. This may not absolve him of his liability to pay interest for the delay in payment if the employee tomorrow proves that he is very well traceable and the employer made only a lukewarm effort. Therefore, the queriest has to first make all efforts to trace him and keep a record of all those efforts. Thereafter, he can act on the suggestions given by other senior members like BM Kalsi, KK Nair, Kprasoon, Umakanthan, and others.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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The queriest has only said that the employee is not approaching him for gratuity. He has not stated what efforts he made to trace him. The employer cannot unilaterally jump to a finding that the employee is not approaching or contacting him or not traceable without actually making efforts to trace him. This may not absolve him of his liability to pay interest for the delay in payment if the employee tomorrow proves that he is very well traceable and the employer made only a lukewarm effort. Therefore, the queriest has to first make all efforts to trace him and keep a record of all those efforts. Thereafter, he can act on the suggestions given by other senior members like BM Kalsi, KK Nair, Kprasoon, Umakanthan, and others.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Gratuity Deposit Conditions
The depositing of gratuity with the CA is permitted only if there is a dispute on the amount, admissibility, or person entitled to receive the gratuity, or when the nominee or heirs are minors. Here, there are no such conditions. If the employee is outside the purview of the LW Act, you cannot deposit it in LWF.
Tracing the Employee
Make all attempts with records to trace the employee, like sending letters or notices in dailies. The CA shall be informed of all these attempts to prove that the delay is not willful.
Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
From India, Thiruvananthapuram
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The depositing of gratuity with the CA is permitted only if there is a dispute on the amount, admissibility, or person entitled to receive the gratuity, or when the nominee or heirs are minors. Here, there are no such conditions. If the employee is outside the purview of the LW Act, you cannot deposit it in LWF.
Tracing the Employee
Make all attempts with records to trace the employee, like sending letters or notices in dailies. The CA shall be informed of all these attempts to prove that the delay is not willful.
Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
From India, Thiruvananthapuram
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Notice in news papers ? The cost of that would be higher than the gratuity payable perhaps ..... Is that necessary ?
From India, Mumbai
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From India, Mumbai
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Sharing the latest judgment of the Andhra Pradesh High Court related to the forfeiture of gratuity. The Honorable court ruled that forfeiture of gratuity is to be effected only by complying with the conditions provided under Section 4(6) of the Payment of Gratuity Act. Failing to do so will render the forfeiture illegal and liable to be quashed by the court. The court also ruled that the forfeiture of gratuity must have a DIRECT CO-RELATION to the damage or loss caused by the employee to the employer.
Regards,
Kamal P
From India, Pune
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Regards,
Kamal P
From India, Pune
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Seeking Advice on Employee Gratuity Eligibility
Hello everyone. I would like to seek advice on a practical issue. An employee joined the establishment in 2006 and worked until 2009. In 2009, he absconded, and after a reminder letter and formalities, he was terminated. In 2013, he claimed for the job in the Labour court, and based on the advice from the Labour office, the company rehired him in 2015. The case continued for 2 years, but the Labour court didn't advise the company to make any payment for the period from 2013-2015.
After the Labour court advised rehiring the employee in 2015, the company did so and employed him in one of its units under the same group. The employee worked there for 2 months and then absconded. The company followed the same formalities as for the previous absconding case.
Now, the employee has launched a case in the labour court, demanding gratuity from 2006 to 2015. Is he legally eligible to receive the gratuity or not? Kindly advise.
From India, Dhanbad
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Hello everyone. I would like to seek advice on a practical issue. An employee joined the establishment in 2006 and worked until 2009. In 2009, he absconded, and after a reminder letter and formalities, he was terminated. In 2013, he claimed for the job in the Labour court, and based on the advice from the Labour office, the company rehired him in 2015. The case continued for 2 years, but the Labour court didn't advise the company to make any payment for the period from 2013-2015.
After the Labour court advised rehiring the employee in 2015, the company did so and employed him in one of its units under the same group. The employee worked there for 2 months and then absconded. The company followed the same formalities as for the previous absconding case.
Now, the employee has launched a case in the labour court, demanding gratuity from 2006 to 2015. Is he legally eligible to receive the gratuity or not? Kindly advise.
From India, Dhanbad
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc