Gratuity claim u/s 4(1)(C) of the Gratuity Act, 1972 Gratuity claim u/s 4(1)(C) of the Gratuity Act, 1972

8 months ago

Dear Sir,

I am Ranganathan, aged 53 years and an Epilepsy patient, undergoing treatment. I joined a private U.S accounting firm in the month of Dec, 2018 and submitted my resignation in Nov,2022 due to work load increase, delivery pressure and most importantly, I was highly disappointed with the poor annual salary increment which was not in line with work load and assurance given by the company which resulted in huge mental stress and suffered with frequent epilepsy attacks.

Also, my health conditions were on question as one side too much work load and another side disappointments with the company for poor salary payment. In this situation, I submitted my resignation on 24th Nov,2022 as below:
__________________________________________________________________________________________________
\\I hereby submit my resignation due to personal reasons with 3 months’ notice period and request you to accept the same. The decision is not easy for me but I found no other option at this situation...!

I shall be grateful to the firm for the job opportunity in the bookkeeping team by trusting me and believe I fulfilled their expectations to the best of my knowledge and efforts.

I also take this opportunity to convey my thanks to all the personnel who closely worked/working with me during my 4 years of service in Prager Metis and they will always be remembered by me.

I conclude that I assure you of fulfilling the HR relieving formalities in order and would be so thankful if you could relieve me from the service as early as possible. Please acknowledge receipt and my best wishes to you all."//
__________________________________________________________________________________________________

And claimed my gratuity under section 4(1)(C) on his death or disablement due to accident or disease: Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

But the HR department rejected my application mentioning as below:
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\\Your prayer for requisition of Gratuity cannot be entertained under any circumstances as disablement under Section 4 means disablement that incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

We would like to clarify further that you had tendered your resignation due to personal reasons and we had relieved you on 28-02-203 based on the resignation submitted. Please note that we did not terminate your services due to disablement. Hence the question of disablement is not applicable in your case and therefore your request for Gratuity is not tenable."
___________________________________________________________________________________________________
Now I humbly request your kind feedback and guidance to understand as an Epileptic person Am I eligible for gratuity considering "disablement due to accident or disease" or not eligible as rejected by HR.

Legal Counsel Vidhikarya

Responded 8 months ago

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A.Dear Client,
When you tender your resignation from the service of the Company on personal grounds and also before completion of continuous service of 5 years, you are not eligible for payment of gratuity under Sec.4(1)(c) of P G Act, 1972. So, the action of the Company rejecting your claim of gratuity cannot be confronted or challenged.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 8 months ago

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A.Dear client,
Section 4 of the Payment of Gratuity Act 1972, to the extent relevant, reads as follows:

(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years —

(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Your prayer for requisition of Gratuity cannot be entertained as disablement under Section 4 means disablement that incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
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