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Gratuity amount
5 months ago
I have worked at a private engineering college in Hyderabad for 10 years and resigned recently to take up another job. Relieving letters and experience letters were issued on the last working day. Salary dues were cleared after 15 days. But when I approach them for my gratuity amount by phone and email,. They are not responding to me. It has been 75 days since I resigned and was relieved. They informed me indirectly through colleagues that my issue is under processing. please advice.
A.Dear Sir,
You have to get issue a strong legal notice and inform that you are going to High Court and there are liable to pay not only the amount but also interest and penalty.
You have to get issue a strong legal notice and inform that you are going to High Court and there are liable to pay not only the amount but also interest and penalty.
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A.Dear Client,
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an employee who is eligible for payment of gratuity under the Act, or any person authorized, in writing, to act on his behalf, shall apply, within thirty days from the date the gratuity became payable, in Form 'I' to the employer who is duty bound to disburse the gratuity within 30 days of cessation of employment of employee or claim made by an employee. After the completion of 30 days, the employer has to pay you not only the gratuity amount but also the simple interest accrued for the delay in payment of the gratuity. Arithmetically, Gratuity amount = 15/26 X Completed years of Service X Salary p.m. Here, Salary p.m. denotes the last drawn salary along with your Dearness Allowance. The payment of gratuity must be made within 30 days from the date of receipt of the application from the ex-employee. The Government vide notification no. 1420(E) dated 29th March, 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs. 10 Lakh to. 20 Lakh with effect from 29th March 2018. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 10 years in an establishment, you are eligible for payment of gratuity from your employer. In case the employer/Company denies payment of gratuity, reach out to the office of the concerned Labour Commissioner who is the Controlling Authority under the Payment of Gratuity Act, 1972 for filing an application claiming gratuity from the employer/Company along with interest for delay in disbursement of gratuity.
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an employee who is eligible for payment of gratuity under the Act, or any person authorized, in writing, to act on his behalf, shall apply, within thirty days from the date the gratuity became payable, in Form 'I' to the employer who is duty bound to disburse the gratuity within 30 days of cessation of employment of employee or claim made by an employee. After the completion of 30 days, the employer has to pay you not only the gratuity amount but also the simple interest accrued for the delay in payment of the gratuity. Arithmetically, Gratuity amount = 15/26 X Completed years of Service X Salary p.m. Here, Salary p.m. denotes the last drawn salary along with your Dearness Allowance. The payment of gratuity must be made within 30 days from the date of receipt of the application from the ex-employee. The Government vide notification no. 1420(E) dated 29th March, 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs. 10 Lakh to. 20 Lakh with effect from 29th March 2018. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 10 years in an establishment, you are eligible for payment of gratuity from your employer. In case the employer/Company denies payment of gratuity, reach out to the office of the concerned Labour Commissioner who is the Controlling Authority under the Payment of Gratuity Act, 1972 for filing an application claiming gratuity from the employer/Company along with interest for delay in disbursement of gratuity.
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A.Dear client,
From your inquiry, it seems that there is no confirmation of any arbitrary act by your employer. So it is advised to not take any legal actions yet and get a clarification first. But still, if the employer/company is not ready to provide the gratuity amount then one can file a suit for arbitrary practices and delay in payment of gratuity.
Here the employer will be liable to pay the interest for the delay it the interest rate differs from case to case basis.
Thank You
From your inquiry, it seems that there is no confirmation of any arbitrary act by your employer. So it is advised to not take any legal actions yet and get a clarification first. But still, if the employer/company is not ready to provide the gratuity amount then one can file a suit for arbitrary practices and delay in payment of gratuity.
Here the employer will be liable to pay the interest for the delay it the interest rate differs from case to case basis.
Thank You
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