I have joined one of the IT companies in Bangalore and worked for 8 years. Then the company transferred me to another department (Online Production). After that, the department became a separate company. I have not received any experience certificate or gratuity payment from my first company. I worked in the online system for another 3 years.
Now, I have resigned from the job. However, the current HR says he can only provide a 3 years experience certificate and gratuity for me. For the remaining years, he will try to contact the head office company and possibly organize it, or ask me to speak directly to the first company (Head Office).
I have resigned with buyout and I am ready to pay one month's salary as well. The HR has provided a resignation letter for the last 3 years only, and no experience or resignation acceptance letter for the company I worked at for 8 years. He also mentioned that gratuity may be paid for 8 years based on my earlier company's basic salary and for 3 years based on my current basic salary. The amount will be adjusted as part of my buyout payment. So, even though I have worked for the last 11 years, I am not going to receive any gratuity payment. The buyout is acceptable for me, but he is unwilling to provide any calculation details. What should I do next? Could you please guide me?
Thanks,
Senthil
From India, Bangalore
Acknowledge(0)
Amend(0)
Now, I have resigned from the job. However, the current HR says he can only provide a 3 years experience certificate and gratuity for me. For the remaining years, he will try to contact the head office company and possibly organize it, or ask me to speak directly to the first company (Head Office).
I have resigned with buyout and I am ready to pay one month's salary as well. The HR has provided a resignation letter for the last 3 years only, and no experience or resignation acceptance letter for the company I worked at for 8 years. He also mentioned that gratuity may be paid for 8 years based on my earlier company's basic salary and for 3 years based on my current basic salary. The amount will be adjusted as part of my buyout payment. So, even though I have worked for the last 11 years, I am not going to receive any gratuity payment. The buyout is acceptable for me, but he is unwilling to provide any calculation details. What should I do next? Could you please guide me?
Thanks,
Senthil
From India, Bangalore
Acknowledge(0)Amend(0)
If company is adamant,then approach labour commissioner of the area for redressal. It appears to be a clever way of avoiding gratuity payments.
From India, Pune
Acknowledge(0)Amend(0)
3180From India, Pune
Acknowledge(0)Amend(0)
You can lodge a complaint and also a petition before the Payment of Gratuity authority, who is normally the Local Deputy Commissioner of Labour.
From the facts given by you, it appears you have a good case to represent.
T. Sivasankaran
From India, Chennai
Acknowledge(0)Amend(0)
From the facts given by you, it appears you have a good case to represent.
T. Sivasankaran
From India, Chennai
Acknowledge(0)Amend(0)
Dear Senthil,
If your version is factually correct, you can file your claim for gratuity against both the companies consequent on your recent resignation.
When the "On-line Production Department" to which you were transferred became a separate company, as mentioned in your post, there should be an agreement between the earlier company and the new one, simply carved out of the "on-line department" of the previous one. This agreement should include provisions regarding the services of the existing employees working therein, including yourself. In the absence of such an agreement or clause regarding the services of the existing employees, as well as the issuance of fresh appointment orders by the newly formed company, the new company is liable for their service obligations as a successor-in-interest.
The continuous stretch of 11 years of your service under both companies entitles you to the computation of your gratuity based on the last-drawn salary only, not on a split-up basis as suggested by the HR personnel. If he denies liability for the earlier 8 years, it is questionable how he can approve gratuity for only the 3 years of service in the new establishment. This seems more like a deliberate attempt to delay and frustrate your rightful claim rather than a lack of legal knowledge.
The amount of gratuity payable under the Payment of Gratuity Act, 1972 cannot be part of any buy-out deal for the notice period.
It would be advisable to seek advice from an experienced advocate and to issue simultaneous legal notices as well as notices for the claim of gratuity to both companies.
From India, Salem
Acknowledge(0)Amend(0)
If your version is factually correct, you can file your claim for gratuity against both the companies consequent on your recent resignation.
When the "On-line Production Department" to which you were transferred became a separate company, as mentioned in your post, there should be an agreement between the earlier company and the new one, simply carved out of the "on-line department" of the previous one. This agreement should include provisions regarding the services of the existing employees working therein, including yourself. In the absence of such an agreement or clause regarding the services of the existing employees, as well as the issuance of fresh appointment orders by the newly formed company, the new company is liable for their service obligations as a successor-in-interest.
The continuous stretch of 11 years of your service under both companies entitles you to the computation of your gratuity based on the last-drawn salary only, not on a split-up basis as suggested by the HR personnel. If he denies liability for the earlier 8 years, it is questionable how he can approve gratuity for only the 3 years of service in the new establishment. This seems more like a deliberate attempt to delay and frustrate your rightful claim rather than a lack of legal knowledge.
The amount of gratuity payable under the Payment of Gratuity Act, 1972 cannot be part of any buy-out deal for the notice period.
It would be advisable to seek advice from an experienced advocate and to issue simultaneous legal notices as well as notices for the claim of gratuity to both companies.
From India, Salem
Acknowledge(0)Amend(0)
Dear sir,
Thank you so much for your valuable information. The company says they will discuss and confirm the payment balance details after 45 days, so another 15 days is available. As of now, I have only received the current company's relieving letter for the past 3 years. I am yet to receive the complete experience certificate. In the meantime, I have joined another IT company and am currently working.
I fear that this situation should not create any problems in my career.
Thanks,
R. Senthil
From India, Bangalore
Acknowledge(0)Amend(0)
Thank you so much for your valuable information. The company says they will discuss and confirm the payment balance details after 45 days, so another 15 days is available. As of now, I have only received the current company's relieving letter for the past 3 years. I am yet to receive the complete experience certificate. In the meantime, I have joined another IT company and am currently working.
I fear that this situation should not create any problems in my career.
Thanks,
R. Senthil
From India, Bangalore
Acknowledge(0)Amend(0)
Dear sir,
My company still has not provided any commitment on Gravity Payments. Could you please clarify the following points for me:
1. If I go to consumer court, will my experience and service certificate be held by the company?
2. What will be the lawyer's fee approximately?
Thanks,
Senthil
From India, Bangalore
Acknowledge(0)Amend(0)
My company still has not provided any commitment on Gravity Payments. Could you please clarify the following points for me:
1. If I go to consumer court, will my experience and service certificate be held by the company?
2. What will be the lawyer's fee approximately?
Thanks,
Senthil
From India, Bangalore
Acknowledge(0)Amend(0)
Consumer Forum is not the appropriate forum to claim gratuity. You have to claim gratuity first by submitting a claim before the employer through FORM I. If they fail to pay, then proceed with FORM N before the controlling authority appointed under the Payment of Gratuity Act. There is no relation between holding certificates and approaching any court. A company cannot legally retain any of your documents.
It is challenging to specify the fees, but it is a time-consuming procedure (approximately 2 years) with plenty of hearings, petitions, rejoinders, examination on affidavits, cross-examination, notes of arguments, etc.
Visit my blog at www.labourlawhub.com for more information.
From India, Kolkata
Acknowledge(0)Amend(0)
It is challenging to specify the fees, but it is a time-consuming procedure (approximately 2 years) with plenty of hearings, petitions, rejoinders, examination on affidavits, cross-examination, notes of arguments, etc.
Visit my blog at www.labourlawhub.com for more information.
From India, Kolkata
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc