• Gratuity payment

I had resigned from my last job with the experience of 5 year and 10 months. After the resigne my previous employer which is regional rural bank had not given me gratuity payable to me.
Please suggest me
Asked 4 years ago in Labour

13 answers received in 1 day.

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16 Answers

Serve legal notice to the employing authority if they fail to pay the gratuity on notice file a complaint with the labour commissioner under the payment of the gratuity act he is the authority he shall pass an order accordingly..

Yes you are eligible for the gratuity as you have served the bank for more then continuous 5 years.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Firslty, once you complete the 5 years of service in a department then you are entitled for the gratuity as per the income tax law, and gratuity act.

Secondly, I advice you to please give them a representation asking for the same.

Thirdly, then wait for 15 days if no urgency otherwise can wait little also.

Fourhtly, thereafter, file a Writ of Mandamus under article 226 of Constitution of India in the High Court for seeking directions and answer for now allowing the benefit of gratuity.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Yes, by writing representation, I meant to say any formal intimation to then to give you your right otherwise you would be force to seek legal help.

You are free to contact me at anytime through Kaanoon over phone consultation for detail procedure and prayers to be put in the Writ or another application if want to send in a proper legal way.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1)An employee must have worked with the employer for a minimum of 5 years to avail this benefit. The reason for exit from the job does not matter as the reason could vary from something as natural as age to something caused due to his own volition such as a better job opportunity.

2)In India, it is mandatory for every employer, be it in the public sector or private sector, to pay his employee gratuity provided the employee has completed 5 continuous years of work.

3)Payment of gratuity is ensured by The Payment of Gratuity Act, 1972, thus making it mandatory under a statute. The act is applicable to every legal place of employment such as mines, factory, shops, oil field, plantation, railway company, and ports. But, it must be noted that these employments must have had or have at least 10 employees, on any day of the preceding one year.

4)Before we delve into the laws, you need to remember that every employer gets 30 days post your resignation, retirement or firing from the job to pay you gratuity.

5)Section 9 of the act provides for all penalties that can be imposed on your employer by the Controlling Authority. Your employer will be liable for imprisonment for non-payment of gratuity – up to 6 months which may be extended to 2 years if the controlling authority deems it necessary.

(a) It is not necessary for the employer to be imprisoned for 6 months as, if the controlling authority is of the opinion that a lesser term of imprisonment would suffice, the provision of 6 months of imprisonment would not be applicable.

(b)A penalty amounting to imprisonment of 6 months could also be imposed on your employer if he knowingly makes a false statement or representation to avoid payment of gratuity.

Mohammed Mujeeb
Advocate, Hyderabad
19029 Answers
32 Consultations

4.5 on 5.0

If it happens to be a government bank then file a writ petition in the HC

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Otherwise you have the following option:

Section 3 of the Payment of Gratuity Act, 1972 provides for a ‘Controlling Authority’. Different areas have different controlling authorities that ensure the effective administration of this act. The act gives the controlling authority the status of a ‘quasi-judicial’ body which implies that it is empowered to adjudicate disputes arising out of non-payment of gratuity.

The Controlling Authority may issue a notice in Form ‘O’ to both the applicant employee and the employer. The two parties will then have to appear before the authority on a specified date, time, and place, given in the notice.

If the employer fails to present himself or an authorized person before the authority, the authority may proceed to hear the case and determine the employee’s application ex parte.

If the employee fails to appear before the authority on the specified date, then the application will be disposed of.

The authority, on hearing the case and examining the facts may pass a direction and issue a notice to the employer if it is established that employee is entitled to gratuity. A notice is served to the employer in Form ‘R’.

Generally, an Assistant Labour Commissioner of a state is appointed as a controlling authority in a state with the hearing taking place in the office of the Labour Commissioner. If you have been denied gratuity payment by your employer, you can file a complaint under Section 8 of the act, against the company. The controlling authority, on hearing both sides, if satisfied with the employee’s stance, can direct the employer to pay the gratuity that is due along with the interest on it.

If an employer fails to pay gratuity amount along with interest 30 days after the controlling authority has directed it to do so, the appropriate government, be it Central Government or State Government, whoever is concerned with the employing organization, will authorize the controlling authority to start prosecution against the employer, within 15 days.

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

You should file a complaint before the jurisdictional labour commissioner under payment of gratuity act.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1) you are eligible for gratuity as your service period are more than 5 years.

2) Contact the HR manager of your last organization and you may send them notice to pay gratuity payment.

Private sector employees covered under the Act:

Gratuity received by employees who are covered under the Act is tax exempted, subject to certain conditions. The least of the following three possibilities are exempt from tax.

Gratuity amount of Rs 10 lakhs or

Salary equivalent to 15 days of service for each year completed or

Actual gratuity received

In cases where the gratuity amount exceeds the exemption limit, it will be taxed as per prevailing conditions.

Private sector employees not covered under the Act:

Employees who do not fall under the ambit of the Payment of Gratuity Act are also eligible for certain exemptions, subject to these exemptions being the least of the following.

Actual gratuity received

Gratuity of Rs 10 lakhs

Amount equivalent to half month salary for every year of service

Any amount exceeding the aforementioned minimum limit is liable to be taxed.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Since you ha e resigned after completion of 5 years you are entitled to payment of gratuity

2) if the amount of gratuity is not paid by the employer within the prescribed time to the said person, he/she has the right to file a complaint to the Controlling Authority under the Payment of Gratuity Act within the area where the employer’s establishment is situated or where the employee was working at the time of termination. Moreover, the aggrieved person can also approach Labour Courts to get relief and justice.

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

Since you have completed 5 years of service you can apply for the payment of gratuity in Form I to your employer under the Payment of Gratuity Act

2) if your company does not pay the gratuity you can knock the doors of the Labour department. The concerned Asst. Commissioner of Labour is the controlling Authority under the Act.

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

Dear Client, you should claim your gratuity under payment of gratuity act.

Jaswant Singh
Advocate, Gurugram
926 Answers
2 Consultations

4.8 on 5.0

Dear Client,

Send legal notice to release gratuity, still not relief , file reference in labor court.

As per courts in India Gratuity Is A Constitutional Right That Can’t Be Taken Away From Employee.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello

If They are not replying to your application then file a writ petition in the hc against the bank.

Regards

Rahul Mishra
Advocate, Lucknow
13754 Answers
65 Consultations

5.0 on 5.0

The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes active i.e. from the day the person retires or his employment is terminated, to the person to whom the gratuity is awarded. If the amount of gratuity payable under the section is not paid by the employer within the period specified, he will have to pay simple interest on it from the date on which the gratuity becomes payable at the rate in coherence with the guidelines laid down by the by the Central Government.

Where the employer fails to make payment of any gratuity payable to the employee, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years. Any employer who contravenes or makes default in complying with any of the provisions of the Act or any rule or order made there under shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both.

You issue a legal demand notice demanding the gratuity amount which you are entitled as per law.

If the amount of gratuity is not paid by the employer within the prescribed time to the said person, he/she has the right to file a complaint to the Controlling Authority under the Payment of Gratuity Act within the area where the employer’s establishment is situated or where the employee was working at the time of termination. Moreover, the aggrieved person can also approach Labour Courts to get relief and justice.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

I already send a application regarding gratuity settlement but they didn't reply.

If an employer makes any false statement or false representation in order to avoid any payment to be made by himself under the Act or of enabling any other person to avoid such payment shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to ten thousand rupees or with both.

If the amount of gratuity is not paid by the employer within the prescribed time to the said person, he/she has the right to file a complaint to the Controlling Authority under the Payment of Gratuity Act within the area where the employer’s establishment is situated or where the employee was working at the time of termination.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Please go through the Gratuity Fund Rules of the bank as some other banks have if suits to you then OK otherwise file immediately an application under Payment of Gratuity Act before the Dy. Labour Commissioner of the Area who is the controlling authority under the act.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

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