Gratuity
2 months ago
I was working for a company for 10 years and I have joining documents...now after resignation company denied to pay gratuity...what should I do now?
A.Dear Client,
With the enactment of the Payment of Gratuity Act, 1972, employers are legally obligated to pay gratuity to employees upon the termination of their employment, regardless of the reason, except for disciplinary action as outlined in the Act. This provision is mandatory for organizations employing 10 or more individuals in the past 12 months.
According to Section 4(1) of the Payment of Gratuity Act, an employee is entitled to receive gratuity upon the cessation of employment after rendering continuous service for five years or more. Section 4(2) specifies the rates at which gratuity should be paid for each completed year of service or part thereof exceeding 6 months.
Section 2A of the Act defines continuous service, considering uninterrupted periods, including leaves, sickness, absence without leave, layoff, strike, lockout, or cessation of work not due to any fault of the employee.
If you have rendered uninterrupted and continuous service for over five years, you are eligible for gratuity payment as per the Act's provisions. The Assistant Labour Commissioners and Labour Officers serve as the Controlling Authority, and Deputy Labour Commissioners are appointed as Appellate Authority. In case the employer denies gratuity payment, you should apply to the Controlling Authority, specifically the Assistant Labour Commissioner, within 90 days of severance from employment.
With the enactment of the Payment of Gratuity Act, 1972, employers are legally obligated to pay gratuity to employees upon the termination of their employment, regardless of the reason, except for disciplinary action as outlined in the Act. This provision is mandatory for organizations employing 10 or more individuals in the past 12 months.
According to Section 4(1) of the Payment of Gratuity Act, an employee is entitled to receive gratuity upon the cessation of employment after rendering continuous service for five years or more. Section 4(2) specifies the rates at which gratuity should be paid for each completed year of service or part thereof exceeding 6 months.
Section 2A of the Act defines continuous service, considering uninterrupted periods, including leaves, sickness, absence without leave, layoff, strike, lockout, or cessation of work not due to any fault of the employee.
If you have rendered uninterrupted and continuous service for over five years, you are eligible for gratuity payment as per the Act's provisions. The Assistant Labour Commissioners and Labour Officers serve as the Controlling Authority, and Deputy Labour Commissioners are appointed as Appellate Authority. In case the employer denies gratuity payment, you should apply to the Controlling Authority, specifically the Assistant Labour Commissioner, within 90 days of severance from employment.
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A.Dear Client,
On the enactment of the Payment of Gratuity Act, 1972 a statutory liability was cast on the employer to pay gratuity to its employee on cessation of his or her employment irrespective of the reason other than disciplinary action as provided under the Act. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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 over 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. In view of the above proposition of law, when you rendered uninterrupted and continuous service for more than five years in an establishment. under the Payment of Gratuity Act, 1972, you are eligible for payment of gratuity for the full length of service payable by the employer as per the provision of Payment of Gratuity Act. All the Assistant Labour Commissioners and Labour Officers in the Labour Department have been appointed Controlling Authority and all the Deputy Labour Commissioners have been appointed Appellate Authority under the Act. If the employer denies payment of Gratuity, then apply to the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner is concerned claiming gratuity from the employer within a period of 90 days from the date of severance of employment. Reach out to an Advocate for guidance and steps ASAP.
On the enactment of the Payment of Gratuity Act, 1972 a statutory liability was cast on the employer to pay gratuity to its employee on cessation of his or her employment irrespective of the reason other than disciplinary action as provided under the Act. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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 over 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. In view of the above proposition of law, when you rendered uninterrupted and continuous service for more than five years in an establishment. under the Payment of Gratuity Act, 1972, you are eligible for payment of gratuity for the full length of service payable by the employer as per the provision of Payment of Gratuity Act. All the Assistant Labour Commissioners and Labour Officers in the Labour Department have been appointed Controlling Authority and all the Deputy Labour Commissioners have been appointed Appellate Authority under the Act. If the employer denies payment of Gratuity, then apply to the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner is concerned claiming gratuity from the employer within a period of 90 days from the date of severance of employment. Reach out to an Advocate for guidance and steps ASAP.
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