• My employees asking for gratuity

I suffered big loss in business and want to wind it up and told my employess to look for job. My employees have gone to labour union, got my shop closed and now asking for gratuity benefits. They have been working for 6 years. Is the demand justified?
Asked 6 years ago in Labour

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15 Answers

It is justified as per law. Gratuity should be paid to those employees who have completed five years of service. 

Regards 

G.Rajaganapathy 

Lawyer 

High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
2300 Answers
8 Consultations

It is applicable to an organization having 10 or more employees qfo have at least 5 years of continuous service in the same. 

Prashant Nayak
Advocate, Mumbai
34526 Answers
249 Consultations

there demand for gratuity is justified as they have worked in your organisation for 6 years or so 

 

if you have less than 10 employees no gratuity  is  payable 

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

you are at liberty to sell your shop but must pay the workers their dues 

 

you can remove posters and flags from your shop

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

They are right in their demand but see the law which is if you have 10 or more employees in the preceding year employed on your roll then this act attracts its provisions so see first then go ahead accordingly. They can't put flag or posters on the shop , the law is that they can protest from a place which is 100 Mts away from your shop so if they are doing such illegal things then immediately give a complaint to the local police and remove all the flag and posters from your shop, unless and until there is any order from the court or the competent authority you can't be stopped from selling the shop, so go ahead. 

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

They can not close your shop. It is illegal. Complain to police and file criminal case if no action taken by police.  You can also file civil case for recovery of loss and damages including compensation.

Claiming gratuity is justified. You can approach gratuity office stating the circumstances under which you have failed to pay gratuity, for some lawful solution and advice. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

What do u mean by shop ? How many employees were working in your shop if more than 10 than entitle to gratuity. In police protection you can remove the posters.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

 the Payment of Gratuity is due after 5 year of service and in case you are closing the business you have to pay 15 days salary to all those employees who have completed 5 years of service this is there due amount and you cannot escape from the liability in case the case goes to the labour Court you will be liable to pay the amount so it will be a good idea to negotiate the matter with the employees and settle down payment

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

it is mandatory to pay gratuity to employee as provision of the payment of gratuity act if the establishment covered under the gratuity act.. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

If your shop employee strength is more than 10 and if you completed a minimum of 5 years of continues service, then you are eligible for Gratuity.

you can remove flag and poster from your shop. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

If you have more than 10 employees, you are liable to give gratuity to all the employees who have completed continuous 5 years of service as per law. The demand is fully justified but they cannot close your shop without your consent. They cannot use any illegal means to get their dues.

 

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

You can get the flags and posters removed from your shop and and also file a complaint against them at the nearest police station for causing vandalism and public nuisance.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

A person is eligible to receive gratuity only if he has completed minimum five years of service with an organisation, provided the company's employees strength is more than 10.

If the employee had been denied gratuity payment by his employer, he 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..

 

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

You can politely ask them to remove the flags and posters from your shop premises, if they dont listen then you may take the assistance of police and get it removed under police protection because employees union will be involved in this issue and it will become another major legal issue.

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

Dear

The demand of your employees is justified by law as any employee who is working in an organisation for more that 5 years is eligible to get the gratuity but that too if you have more than 10 employees working with you.

And you can remove the flags and poster from your shop with the help of police by lodging an FIR against your Employees for criminal Intimidation and forcefully closing shop and taking illegal possession.

You can sell your shop any time but you should clear the dues of your employees as soon as possible to avoid any legal proceeding.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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