Employer not paying gratuity even after 4 months of leaving the organization
2 weeks ago
I have worked in a software services firm for 9 years in Pune. My last working day was 9th Dec 2023 and the employer has still not released the gratuity cheque. They are not even providing an ETA and have stopped responding to my emails.
A.Dear Client,
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for applicable establishments. According to Section 4(1) of the Act, an employee is entitled to gratuity upon termination of employment after rendering continuous service for five years or more. Section 4(2) specifies that gratuity must be paid for each completed year of service or part thereof exceeding six months, at prescribed rates.
Section 2A of the Act defines continuous service, including uninterrupted service despite instances like accidents, sickness, leave, unauthorized absence, layoff, strike, or lock-out. Based on these provisions, if you have provided uninterrupted service for nine years in an establishment, you are eligible for gratuity payment by your employer under the Payment of Gratuity Act.
Gratuity benefits are calculated using the formula: (15/26) multiplied by (Number of Completed Years of Service) multiplied by (Final Salary).
Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an eligible employee or their authorized representative must apply to the employer within thirty days from the date the gratuity becomes payable, using Form 'I'. The employer must disburse gratuity within 30 days of the employee's cessation of employment or the claim made by the employee. If the employer fails to do so, they are liable to pay the gratuity amount along with simple interest for the delay.
In case of denial of gratuity, the employee can file a complaint with the Labour Commissioner or the Controlling Authority under the Act for non-payment.
Regarding non-payment of Employees' Terminal Benefits, the employee should file an application under Sec.33C(2) of the Industrial Disputes Act against the company before the State Labour Court to claim recovery of all dues owed to them.
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for applicable establishments. According to Section 4(1) of the Act, an employee is entitled to gratuity upon termination of employment after rendering continuous service for five years or more. Section 4(2) specifies that gratuity must be paid for each completed year of service or part thereof exceeding six months, at prescribed rates.
Section 2A of the Act defines continuous service, including uninterrupted service despite instances like accidents, sickness, leave, unauthorized absence, layoff, strike, or lock-out. Based on these provisions, if you have provided uninterrupted service for nine years in an establishment, you are eligible for gratuity payment by your employer under the Payment of Gratuity Act.
Gratuity benefits are calculated using the formula: (15/26) multiplied by (Number of Completed Years of Service) multiplied by (Final Salary).
Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an eligible employee or their authorized representative must apply to the employer within thirty days from the date the gratuity becomes payable, using Form 'I'. The employer must disburse gratuity within 30 days of the employee's cessation of employment or the claim made by the employee. If the employer fails to do so, they are liable to pay the gratuity amount along with simple interest for the delay.
In case of denial of gratuity, the employee can file a complaint with the Labour Commissioner or the Controlling Authority under the Act for non-payment.
Regarding non-payment of Employees' Terminal Benefits, the employee should file an application under Sec.33C(2) of the Industrial Disputes Act against the company before the State Labour Court to claim recovery of all dues owed to them.
Helpful
Helpful
Share
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. 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. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 9 years in an establishment, you are eligible for payment of gratuity payable by your employer as per the provision of the Payment of Gratuity Act. The Gratuity Benefits are calculated using the following formula:-(15/26) multiplied by (No of Completed Years on Exit) multiplied by (Terminal Wages/Salary). 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. As regards non-payment of ETA, you need to file an application under Sec.33C(2) of the I D Act against the Company before the State Labour Court claiming recovery of entire dues receivable to an ex-employee. Feel free to contact our legal team to navigate the issue in the right way.
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. 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. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 9 years in an establishment, you are eligible for payment of gratuity payable by your employer as per the provision of the Payment of Gratuity Act. The Gratuity Benefits are calculated using the following formula:-(15/26) multiplied by (No of Completed Years on Exit) multiplied by (Terminal Wages/Salary). 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. As regards non-payment of ETA, you need to file an application under Sec.33C(2) of the I D Act against the Company before the State Labour Court claiming recovery of entire dues receivable to an ex-employee. Feel free to contact our legal team to navigate the issue in the right way.
Helpful
Helpful
Share
Read Related Answers
Already Served 10 Days Out Of 15 Days Notice Period, But Have Still Not Got LWD.
Dear Client,
Please go through the terms and conditions of your employer employee contract once again and understand whether your release letter depends on the service company. if it does not then y...
Regarding obc NCL reservation
Dear Client,
There is a general reservation of 10% for the children of BSF officers in the BSF itself, but other general reservation quota depends on the institution.
Contractual Employer deducting PF
Dear Client,
the Industrial Disputes Act of 1947 defines layoff, it excludes employees in management or supervisory positions. The Act also states that an employee must be a 'workman' to be eligible...
Pf overlapped and now jobless
Dear Client,
Since your employment with the old company is based on contract for two months, you need to fulfill the said period and resign from the company by following the exit procedure. In case of...
Employment advice
Dear Client,
A manager cannot initiate the resignation process on behalf of the employee without the employee's consent. It is considered as a unethical practical and can have legal implications. You...
Read Blogs on Employment and Labour
Employment and Labour Lawyers
Find Lawyers by Location
