• Gratuity and arrears

I am a medical doctor who worked as a university teaching faculty in a private medical college for a duration of 9 years from 2011 to 2020.

I resigned of my own accord after a toxic gas leak accident that made my very sick (and which I suspect was deliberately planned by some acrimonious colleagues).I do have a record of the e mail I sent to the MD regarding the accident at work. I do not however have any medical certificate regarding my sickness nor did i take any action against this.
I did not get any response for the same e mail sent to the MD and was denied any appointment to meet him. I resigned shortly after. I was a Professor at the time drawing a salary of 1.6 lakh of which 80 k was the basic pay . My experience certificate describes my work and conduct to be 'very good'.

I applied for gratuity (on plain paper, not on the prescribed form) on the day of resignation. I took a picture of the number date entry in the department office record register and have the picture saved in my mobile which I hope would be some evidence that I did apply for gratuity on the said date.
However I did not take a receiving when i handed over my application at the MD office. Neither did I follow it up in the coming month due to my own ill health and the covid pandemic which was at its peak at the time.

This year, roughly 1.5 years after my date of gratuity application, I made multiple visits to the HR department of my previous workplace. . I also wrote a few e mails regarding the same and have a record of the same.. However they released neither my pending salary arrears nor my gratuity. I do have record of payslips and salary credited to my salary account.

1. I would like to know how strong my case is for getting gratuity and my arrears
2. How much time should be given in notice to the employer to release the dues .
3. Whether i would be eligible for compensation for the accident at work. I only have the e mail that I sent the MD and no medical certificate regarding illness at the time. Whether it would be worth it applying for compensation or if it would unnecessarily prolong the case.
4. If the employer does not release the gratuity and arrear salary in the time provided, and the case goes to labour court , how long would cases like mine usually take for the verdict. My case is likely to go to Noida labour court as per location of the workplace. Do courts have a prescribed timeline within which case should be closed
5. Can i ask for interest on the gratuity and dues from the date it should have been released.
6. Does the gratuity formula include dearness allowance in private sector, no such allowance is mentioned in the salary slip. Salary slip mentions only HRA and special allowance
7. What is the latest recommended formula for gratuity calculation
8. Even if i do not ask for compensation, does my accident at the workplace make a stronger case for gratuity
Asked 1 year ago in Labour

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5 Answers

Dear client, your case is a very strong one. 

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.

Anik Miu
Advocate, Bangalore
8883 Answers
110 Consultations

4.7 on 5.0

Issue legal notice to organisation to pay your salary arrears and gratuity 

 

2) give them 15 days time to make payment 

 

3) you would not get compensation for illness .you don’t have any medical certificate regarding your illness 

 

4) disposal of case friends upon pendency of cases in labour court 

 

5) you can seek interest for delayed payment 

 

6) 

Gratuity calculation involves usage of the gratuity formula, which goes as follows:

G = N*B*15/26

Where,

  • G = Total amount of gratuity you can receive
  • N = Number of years of your service/job in the company
  • B = Last received salary (Basic plus DA)

Ajay Sethi
Advocate, Mumbai
94729 Answers
7536 Consultations

5.0 on 5.0

1. You have not followed up the demands properly.

You should have made a demand for settlement of your salary arrears, PF and gratuity payments  by sending a legal demand notice after your resignation if the employer had not entertained your personal letter.

The emails sent by you would not be recognised as correspondence, hence it is always better to have the correspondences in writing and sent by registered post so that this can be produced as evidence at the time of the dispute referred before concerned authorities or court. 

2. You can  give a maximum period of 15 days for settlement of the due to you, but make sure you send the demand notice by registered post instead of adopting the fancy email correspondence alone.

3. Without any evidence for the accident or medical certificate for the illness due to the accident you cannot claim any compensation, your email communication in this regard is not a substantial evidence for getting your claim settled.

4. Bering a doctor by profession, you may not be covered under labor laws, hence you may have to either file a recovery suit in  the civil court or file a writ petition before high court.

As per section 8 of the Payment of Gratuity Act, 1972:

If the amount of gratuity payable under this Act is not paid by the employer,
within the prescribed time, to the person entitled thereto, the controlling
authority shall, on an application made to it in this behalf by the aggrieved
person, issue a certificate for that amount to the Collector, who shall recover
the same, together with compound interest thereon at such rate as the Central
Government may, by notification, specify,] from the date of expiry of the
prescribed time, as arrears of land revenue and pay the same to the person
entitled thereto :
Provided that the controlling authority shall, before issuing a certificate
under this section, give the employer a reasonable opportunity of showing
cause against the issue of such certificate:
Provided further that the amount of interest payable under this section shall,
in no case exceed the amount of gratuity payable under this Act.

6. The calculation for this is: Gratuity = Average salary (basic + DA) * ½ * Number of service years

7. The Gratuity calculation formula is: Gratuity = (15 × last drawn salary × working tenure)/30.

8. The compensation for accident claim is different to that of gratuity payment.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

- As per law , an employee is eligible to receive gratuity, only if he has completed minimum five years of service with an establishment.

- Further , as per Madras High Court, the gratuity of an employee who completes 4 years and 240 days of service  is eligible for gratuity.

- Further, Section 4(2) of the Payment of Gratuity Act provides that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee for the whole year. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity , if the employee has had continuous service of 190 / 240 days.

- Further, as per Section 7(3A) of the Payment of Gratuity Act , an employee is eligible to get interest at the rates notified by the government , if there is delay of payment is more than 30 days from the date it becomes payable.

1. You are entitled to get the same legally ,

2. You can send a legal notice to the employer and give 7 days of time to refund the gratuity 

3. You are also entitled to get the compensation as well , if you having proof of accident 

4. It may take 6 months

5. Yes under Section 7(3A) of the Payment of Gratuity Act , you are entitled to get the interest for the delay 

6. Yes

7. Gratuity = n*b*15 / 26 , Where n = Tenure of service completed in the company , and b = Last drawn basic salary + dearness allowance

8. Yes

Mohammed Shahzad
Advocate, Delhi
13230 Answers
198 Consultations

5.0 on 5.0

You have a strong case. Yes da is covered. If after sending legal notice gratuity not paid then file labour case

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

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