When should an employer give the Gratuity payment to an employee who is retiring on the 28th of February, 2009, as the employee is requesting to receive their cheque on the same day? Please respond promptly so that I can provide an answer to the employee and my employer.
Thank you,
Sug.
(Asst. Mgr. HR)
From India, Delhi
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Thank you,
Sug.
(Asst. Mgr. HR)
From India, Delhi
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As per Section 7(3) of the Payment of Gratuity Act, 1972, the amount of gratuity shall be paid within 30 days of the amount becoming due. The date on which the employee retires or otherwise leaves the organization is the date on which the 'payment is due'. However, as per the aforementioned subsection, the employer can avail 30 days' time beyond which only he is liable to pay interest.
Regards,
Madhu.T.K
From India, Kannur
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4526Regards,
Madhu.T.K
From India, Kannur
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Thanks a lot Madhu, and if you can also plz let me know that if by chance an employer fails to do so, then what can employee do? i mean is he/she can sue the employer?
From India, Delhi
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From India, Delhi
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dear if employer fails to pay within stipulated time employee can file a case infront of controllong authority under gratuity act. tks j s malik
From India, Delhi
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From India, Delhi
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hi...............if emlyoer is nt paying on tme,,,,,yes the emplyee can ask for t intrest or can sue.......
From India, Dharamsala
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From India, Dharamsala
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Dear Sug,
The employer has to pay the retiring employee the amount of gratuity payable within 21 days from the date of leaving. However, the employer should send the claim 15 days before the date of the employee's departure.
This time, you can use this as an excuse. However, the employer should endeavor to provide the gratuity amount by cheque on the very last day of the departing employee's work.
Thanks,
Amit Anand Gera
From India, New Delhi
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The employer has to pay the retiring employee the amount of gratuity payable within 21 days from the date of leaving. However, the employer should send the claim 15 days before the date of the employee's departure.
This time, you can use this as an excuse. However, the employer should endeavor to provide the gratuity amount by cheque on the very last day of the departing employee's work.
Thanks,
Amit Anand Gera
From India, New Delhi
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Hi Amit and Madhu, Plz let me know when is that an employee becomes eligible to claim his/her gratuity? I mean the serving period with the employer. Kindly reply.
From India, Hyderabad
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From India, Hyderabad
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Hi Amit and Madhu, Can you plz tell me the duration after wch an employee becomes eligible for Gratuity? Kindly reply!
From India, Hyderabad
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From India, Hyderabad
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To Sunita:
Continuing service of 5 years, but if leaving after 4 years and 8 months (240 days), then consider it as 5 years.
To Snehal:
If payment is not made within 30 days, 10% interest has to be paid as per the High Court judgment. You can refer to the "Practical Journal of HRM and Labor Law" of August 2008.
From India, Ahmadabad
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Continuing service of 5 years, but if leaving after 4 years and 8 months (240 days), then consider it as 5 years.
To Snehal:
If payment is not made within 30 days, 10% interest has to be paid as per the High Court judgment. You can refer to the "Practical Journal of HRM and Labor Law" of August 2008.
From India, Ahmadabad
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Sir,
Gratuity payable to an employee by a contractor. In this scenario, the contractor has an agreement of actual gratuity claim reimbursement at the time of claim by the contract employee. The employee can ask the principal employer for his gratuity. Is it correct to have an agreement by the principal employer with the contractor to reduce the cost and bypass the contractor?
Dr. Srinivas
From United States, Cambridge
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Gratuity payable to an employee by a contractor. In this scenario, the contractor has an agreement of actual gratuity claim reimbursement at the time of claim by the contract employee. The employee can ask the principal employer for his gratuity. Is it correct to have an agreement by the principal employer with the contractor to reduce the cost and bypass the contractor?
Dr. Srinivas
From United States, Cambridge
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc