I have worked in an ISO & Pvt Ltd. Co. for a continuous 12 years. I have now resigned and want the gratuity payment. I had ESI & PF facilities there. At the time of my last day, I asked our HR about gratuity, but she told me our organization does not have registration for it and we have not maintained any record or register for it, so we do not pay gratuity. Now, my question is, is that the right reason to deny gratuity? Should I get the payment or should I forget about it?
From India, Pune
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From India, Pune
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Since the ESI and PF Act are applicable to your company, it is evident that the POG Act is also applicable. With your total service of 12 years, your company cannot deny you payment of gratuity. It appears that your HR needs to update her knowledge.
Please go through the link provided below and take appropriate action: [URL=https://www.google.com/url?q=https://www.citehr.com/490538-can-software-company-says-they-dont-have.html&sa=U&ei=gKZZVKWPBePTmgX_2oDoBw&ved=0CAoQ FjAC&client=internal-uds-cse&usg=AFQjCNHCJEnXmlFXrDKHumKFHXD7rqwDq]
Thank you.
From India, Mumbai
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2584Please go through the link provided below and take appropriate action: [URL=https://www.google.com/url?q=https://www.citehr.com/490538-can-software-company-says-they-dont-have.html&sa=U&ei=gKZZVKWPBePTmgX_2oDoBw&ved=0CAoQ FjAC&client=internal-uds-cse&usg=AFQjCNHCJEnXmlFXrDKHumKFHXD7rqwDq]
Thank you.
From India, Mumbai
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When PF and ESI are made applicable, all other labor enactments should also be covered for your company in one way or another. Your HR might have no knowledge about the same. As per the provisions of the Payment of Gratuity Act, if an employee works for continuous service of 5 years, provided they work for not less than 240 days in every year, they are entitled to gratuity at 15 days' average pay for every completed year of service.
So in your case, if you work for 12 years, you may get 6 months' pay as gratuity as per the provisions of the Gratuity Act.
Regards
From India, Hyderabad
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So in your case, if you work for 12 years, you may get 6 months' pay as gratuity as per the provisions of the Gratuity Act.
Regards
From India, Hyderabad
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Kindly check if there should have been a mention of Gratuity somewhere in your appointment letter, appraisal letter, etc., and refer to your HR to ask them for clarification.
Regards,
Vaishalee Parkhi
[LinkedIn Profile](https://www.linkedin.com/pub/vaishalee-parkhi/62/9ab/6b0)
From India, Pune
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Regards,
Vaishalee Parkhi
[LinkedIn Profile](https://www.linkedin.com/pub/vaishalee-parkhi/62/9ab/6b0)
From India, Pune
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Dear Vaishalee ji, Do you mean to say, if there is no mention of Gratuity in the letter of appointment issued to her or letter of appraisal, she won’t be entitled to payment of Gratuity?
From India, Mumbai
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From India, Mumbai
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It is not like that. It seems the HR is new or not aware, or the company might not have really paid for Gratuity in earlier cases. In such a case, such a mention on any of the documents will be of help. In many companies' appointment letters, a Gratuity criterion is mentioned as Gratuity will be paid as per the Gratuity Act only on completion of five years of service with the company. This can be used as evidence to ask for clarification if it is not being paid.
On another note, I feel the employee should also be aware of their entitlements being an employee—maybe at the time of joining or in the intermediate period—and should ask questions if they are not being fulfilled. This will help keep a check over companies.
Regards,
Vaishalee Parkhi
[LinkedIn Profile:](https://www.linkedin.com/pub/vaishalee-parkhi/62/9ab/6b0)
From India, Pune
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On another note, I feel the employee should also be aware of their entitlements being an employee—maybe at the time of joining or in the intermediate period—and should ask questions if they are not being fulfilled. This will help keep a check over companies.
Regards,
Vaishalee Parkhi
[LinkedIn Profile:](https://www.linkedin.com/pub/vaishalee-parkhi/62/9ab/6b0)
From India, Pune
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Dear Vaishaleeji & Keshavji,
Actually, I have emailed our boss regarding the gratuity payment, but no reply has been received from her to date despite sending reminder emails. As per Keshavji, I did not send it by registered mail as our relations were good. Now, Vaishaleeji, you are right—employees should be aware of their entitlements, of which I was not aware. I have not been provided with an appointment letter, appraisal letter, or any documentation from my boss or other old employees, indicating no evidence of issuing gratuity payment. The only document I have received is an experience letter, unsigned by my boss but issued by our HR.
Additionally, I have noticed a few points. Firstly, our actual present days are not mentioned on the muster at the time of payment, and they have been understated. Secondly, the basic salary and DA remained the same both before and after the increment, and they are lower than the HRA and other allowances.
In these circumstances, what should I do? Should I seek guidance or should I let it go? My boss does not answer my phone calls, and our HR does not provide a clear answer. Please advise.
Thank you.
From India, Pune
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Actually, I have emailed our boss regarding the gratuity payment, but no reply has been received from her to date despite sending reminder emails. As per Keshavji, I did not send it by registered mail as our relations were good. Now, Vaishaleeji, you are right—employees should be aware of their entitlements, of which I was not aware. I have not been provided with an appointment letter, appraisal letter, or any documentation from my boss or other old employees, indicating no evidence of issuing gratuity payment. The only document I have received is an experience letter, unsigned by my boss but issued by our HR.
Additionally, I have noticed a few points. Firstly, our actual present days are not mentioned on the muster at the time of payment, and they have been understated. Secondly, the basic salary and DA remained the same both before and after the increment, and they are lower than the HRA and other allowances.
In these circumstances, what should I do? Should I seek guidance or should I let it go? My boss does not answer my phone calls, and our HR does not provide a clear answer. Please advise.
Thank you.
From India, Pune
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This refers to your messages to me and your posts as above. Gratuity is payable to an employee as per the Act, namely the Payment of Gratuity Act 1972. Even if no appointment letter is issued to you, or if one is issued without a clause regarding Gratuity Payment, if your employer has not paid Gratuity to any employee, they are liable to pay you Gratuity if the Payment of Gratuity Act 1972 is applicable to them.
Applicability of the Payment of Gratuity Act 1972
I have mentioned in several posts the circumstances under which the Payment of Gratuity Act 1972 applies to any establishment or company, and when an employee is entitled to gratuity. In the link provided in my earlier post in this thread, I have outlined the procedure on how to claim gratuity.
I have not responded to your messages as I have already provided you with the necessary information. The information is in your hands with just one click. You need to read, understand, and follow it.
Regards
From India, Mumbai
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Applicability of the Payment of Gratuity Act 1972
I have mentioned in several posts the circumstances under which the Payment of Gratuity Act 1972 applies to any establishment or company, and when an employee is entitled to gratuity. In the link provided in my earlier post in this thread, I have outlined the procedure on how to claim gratuity.
I have not responded to your messages as I have already provided you with the necessary information. The information is in your hands with just one click. You need to read, understand, and follow it.
Regards
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc