Gratuity and PF
4 weeks ago
Sir/Madam,
I have completed 5 years in the company however there was no PF deduction. I have even requested for gratuity during my notice period but after 15 days got the answer that I am not liable for the same as the company did not deduct PF. Should I send them legal notice? Am I eligible for gratuity or not, please guide me.
A.Dear Client,
If a company employs 20 or more individuals, it falls under the EPF & MP Act, 1952, providing benefits to its employees. Employees earning up to ₹15,000 must have an EPF account, while those earning more require approval. Failure to register under EPF can lead to legal consequences. The Payment of Gratuity Act, 1972 mandates gratuity payment for employees with five years of continuous service. Form 'I' must be submitted to the employer within 30 days of gratuity becoming due. The employer must pay gratuity within 30 days of employment cessation, along with accrued interest for delays. Non-payment can be reported to the Labour Commissioner for action.
If a company employs 20 or more individuals, it falls under the EPF & MP Act, 1952, providing benefits to its employees. Employees earning up to ₹15,000 must have an EPF account, while those earning more require approval. Failure to register under EPF can lead to legal consequences. The Payment of Gratuity Act, 1972 mandates gratuity payment for employees with five years of continuous service. Form 'I' must be submitted to the employer within 30 days of gratuity becoming due. The employer must pay gratuity within 30 days of employment cessation, along with accrued interest for delays. Non-payment can be reported to the Labour Commissioner for action.
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A.Dear Client,
It may be noted that if any establishment employs 20 or more persons, the same shall be covered under the provisions of the EPF & MP Act, 1952 for the grant of various benefits thereunder to the employees working there. If you worked in a Company for the last five years where the number of employees is below the threshold limit i.e, less than 20. In that case, that company does not come under the ambit or coverage of the EPF Act and accordingly statutory deduction of contribution from the salary of the employee towards the EPF Account is not carried out. It is mandatory for salaried employees earning up to ₹15,000 to have an EPF account. Employees earning more than ₹15,000 can also register for an EPF account, but it requires approval from the Assistant PF Commissioner. Organizations with a workforce of 20 or more employees are required to register for the EPF scheme and for non-registration under the EPF Act, the employer has to face legal consequences including penalties once the matter is brought to the notice of the Authority. As regards payment of gratuity, payment of gratuity has become mandatory for the establishment where the Payment of Gratuity Act, 1972 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. 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. In case of denial of gratuity by the employer, reach out to the office of the concerned Labour Commissioner and the Controlling Authority under the Act to file a complaint against the employer over non-payment of gratuity.
It may be noted that if any establishment employs 20 or more persons, the same shall be covered under the provisions of the EPF & MP Act, 1952 for the grant of various benefits thereunder to the employees working there. If you worked in a Company for the last five years where the number of employees is below the threshold limit i.e, less than 20. In that case, that company does not come under the ambit or coverage of the EPF Act and accordingly statutory deduction of contribution from the salary of the employee towards the EPF Account is not carried out. It is mandatory for salaried employees earning up to ₹15,000 to have an EPF account. Employees earning more than ₹15,000 can also register for an EPF account, but it requires approval from the Assistant PF Commissioner. Organizations with a workforce of 20 or more employees are required to register for the EPF scheme and for non-registration under the EPF Act, the employer has to face legal consequences including penalties once the matter is brought to the notice of the Authority. As regards payment of gratuity, payment of gratuity has become mandatory for the establishment where the Payment of Gratuity Act, 1972 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. 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. In case of denial of gratuity by the employer, reach out to the office of the concerned Labour Commissioner and the Controlling Authority under the Act to file a complaint against the employer over non-payment of gratuity.
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