I have worked in one establishment for 5 years and left the job on 25/01/2015. However, I had not claimed the gratuity till now (i.e. 30/05/2018). I have asked for my Gratuity amount through mail, but they are not responding. What further action can I take to claim my Gratuity?
From India, undefined
From India, undefined
Please refer to sub-rule 5 of Rule 7 of the Payment of Gratuity (Central) Rules, which states that an application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer if the applicant adduces sufficient cause for the delay in preferring his claim. No claim for gratuity under the Act shall be invalid merely because the claimant failed to present his application within the specified period.
This sub-rule further states that any dispute in this regard shall be referred to the controlling authority for his decision.
From India, Mumbai
This sub-rule further states that any dispute in this regard shall be referred to the controlling authority for his decision.
From India, Mumbai
You need to act as advised by our colleague to make an application for the claim of gratuity and send it to your employer by registered post. You have to wait for 30 more days after your application. If your case is valid, no one can prevent you from receiving it from your employer. If your employer makes no payment, you need to file a claim petition before the labor department where your employer is registered.
The Gratuity Act in India
The Gratuity Act in India came into effect to provide social benefits to employees after completing 5 years of service. Therefore, the law restricts the impounding of gratuity. Gratuity, under the Gratuity law in India, cannot be attached. Now, the question of whether gratuity can be paid at the employer's discretion is addressed below:
Section 7(3) casts a duty on employers to determine the amount of gratuity and give a notice in writing to the person to whom gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined. Section 7(3) provides for the payment of gratuity within 30 days from the date it becomes payable to the concerned person. Section 7(3A) provides for interest if gratuity is not paid as provided in subsection 3 of Section 7.
The Hon'ble Supreme Court in the matter of State of Kerala vs. Padmanabhan Iyer, 1985, has held that delayed payment of gratuity must be visited with the penalty of interest at the current market rate until actual payment.
The provision in Section 7(1) cannot be construed as a leverage to deny gratuity to the employee on the specious plea that the person has not applied for gratuity as provided under Section 7(1) in Form I.
Relevant Legal Provisions
Section 7(1) of the Gratuity Act states that an employee who is eligible for payment of gratuity under the Act shall apply in writing to the employer for payment of such gratuity amount. Rule 7(1) of the Payment of Gratuity Rules, 1972, states that the above application shall be made ordinarily within 30 days from the date the gratuity became payable, in Form 'I' to the employer.
Further, Section 7(2) of the Act of 1972 states that the employer, whether or not the above application has been made, must determine the amount of gratuity payable and give a notice in writing to the concerned employee and Controlling Authority informing them about such amount.
Rule 8 of the Payment of Gratuity Rules, 1972, states that within 15 days of receipt of the application under Rule 7, the employer must give a notice under 'Form L' if the claim is found admissible. If the claim for gratuity is not found admissible, the employer shall issue a notice under 'Form M' to the employee specifying the reasons why the claim for gratuity is considered not admissible.
Section 7(3) of the Act of 1972 states that the employer shall pay the amount of gratuity so determined within 30 days from the date it becomes payable to the concerned employee.
Rule 10 of the Payment of Gratuity Rules, 1972, provides that a claimant employee may apply to the controlling authority in writing in 'Form N', if the employer either refuses to accept a nomination to entertain an application under Rule 7(1), or having received an application under Rule 7 fails to issue any notice as required under Rule 8. The Controlling Authority may accept any application after the expiry of the specified period for submission of such application if sufficient cause is shown by the applicant.
From India, Mumbai
The Gratuity Act in India
The Gratuity Act in India came into effect to provide social benefits to employees after completing 5 years of service. Therefore, the law restricts the impounding of gratuity. Gratuity, under the Gratuity law in India, cannot be attached. Now, the question of whether gratuity can be paid at the employer's discretion is addressed below:
Section 7(3) casts a duty on employers to determine the amount of gratuity and give a notice in writing to the person to whom gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined. Section 7(3) provides for the payment of gratuity within 30 days from the date it becomes payable to the concerned person. Section 7(3A) provides for interest if gratuity is not paid as provided in subsection 3 of Section 7.
The Hon'ble Supreme Court in the matter of State of Kerala vs. Padmanabhan Iyer, 1985, has held that delayed payment of gratuity must be visited with the penalty of interest at the current market rate until actual payment.
The provision in Section 7(1) cannot be construed as a leverage to deny gratuity to the employee on the specious plea that the person has not applied for gratuity as provided under Section 7(1) in Form I.
Relevant Legal Provisions
Section 7(1) of the Gratuity Act states that an employee who is eligible for payment of gratuity under the Act shall apply in writing to the employer for payment of such gratuity amount. Rule 7(1) of the Payment of Gratuity Rules, 1972, states that the above application shall be made ordinarily within 30 days from the date the gratuity became payable, in Form 'I' to the employer.
Further, Section 7(2) of the Act of 1972 states that the employer, whether or not the above application has been made, must determine the amount of gratuity payable and give a notice in writing to the concerned employee and Controlling Authority informing them about such amount.
Rule 8 of the Payment of Gratuity Rules, 1972, states that within 15 days of receipt of the application under Rule 7, the employer must give a notice under 'Form L' if the claim is found admissible. If the claim for gratuity is not found admissible, the employer shall issue a notice under 'Form M' to the employee specifying the reasons why the claim for gratuity is considered not admissible.
Section 7(3) of the Act of 1972 states that the employer shall pay the amount of gratuity so determined within 30 days from the date it becomes payable to the concerned employee.
Rule 10 of the Payment of Gratuity Rules, 1972, provides that a claimant employee may apply to the controlling authority in writing in 'Form N', if the employer either refuses to accept a nomination to entertain an application under Rule 7(1), or having received an application under Rule 7 fails to issue any notice as required under Rule 8. The Controlling Authority may accept any application after the expiry of the specified period for submission of such application if sufficient cause is shown by the applicant.
From India, Mumbai
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