gratuity eligibility with 4 year and 10 month service
2 months ago
my employer denied paying gratuity.
A.Dear Client,
With the implementation of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for eligible establishments. According to Section 4(1) of the Act, an employee is entitled to receive gratuity upon cessation of employment after rendering continuous service for five years or more. This provision is applicable to organizations with 10 or more employees in the past 12 months.
Section 4(2) specifies that for each completed year of service or part thereof exceeding 6 months, the employer is obligated to pay gratuity to an employee at prescribed rates. As per Section 2A, continuous service includes uninterrupted periods, encompassing accidents, sickness, leave, absence without leave, layoff, strike, lockout, or cessation of work not due to any fault of the employee.
The Madras High Court, in the Salem Textile Case, determined that an employee completing 4 years and 240 days is eligible for gratuity. Considering this legal precedent, if you have rendered uninterrupted and continuous service for 4 years and 10 months in an establishment, you are entitled to gratuity payment from your employer as per the Payment of Gratuity Act.
The Assistant Labour Commissioners and Labour Officers have been designated as Controlling Authority, while Deputy Labour Commissioners serve as Appellate Authority under the Act. If your employer denies gratuity payment, you should apply to the Controlling Authority (specifically the Assistant Labour Commissioner concerned) under the Payment of Gratuity Act within 90 days from the date of severance of employment.
With the implementation of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for eligible establishments. According to Section 4(1) of the Act, an employee is entitled to receive gratuity upon cessation of employment after rendering continuous service for five years or more. This provision is applicable to organizations with 10 or more employees in the past 12 months.
Section 4(2) specifies that for each completed year of service or part thereof exceeding 6 months, the employer is obligated to pay gratuity to an employee at prescribed rates. As per Section 2A, continuous service includes uninterrupted periods, encompassing accidents, sickness, leave, absence without leave, layoff, strike, lockout, or cessation of work not due to any fault of the employee.
The Madras High Court, in the Salem Textile Case, determined that an employee completing 4 years and 240 days is eligible for gratuity. Considering this legal precedent, if you have rendered uninterrupted and continuous service for 4 years and 10 months in an establishment, you are entitled to gratuity payment from your employer as per the Payment of Gratuity Act.
The Assistant Labour Commissioners and Labour Officers have been designated as Controlling Authority, while Deputy Labour Commissioners serve as Appellate Authority under the Act. If your employer denies gratuity payment, you should apply to the Controlling Authority (specifically the Assistant Labour Commissioner concerned) under the Payment of Gratuity Act within 90 days from the date of severance of employment.
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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. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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. The Madras High Court in Salem Textile Case had held that an employee who has completed 4 years and 240 days is eligible for gratuity. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 4 years and 10 months in an establishment, you are eligible for payment of gratuity from your 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.
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. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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. The Madras High Court in Salem Textile Case had held that an employee who has completed 4 years and 240 days is eligible for gratuity. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 4 years and 10 months in an establishment, you are eligible for payment of gratuity from your 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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