Payment Of Gratuity - Payment Of Grautity [Thread 328654]

Dear Sir,
I have one query about payment of gratuity.
One of our employee worked with the company for 12 years. Later he resigned. On his request, his 2 months notice period was waived off. After clearance of all his dues, he was issued experience certificate.
At the time of his relieving, neither management paid him any gratuity (as there is no provision) nor he applied for the same.
After a gap of 2 years, now he had sent one letter wherein he has requested for release of his gratuity.
My question is :- Is there any time frame within which a person had to apply for his gratuity. Is he eligible for gratuity now.
(2) In case he is eligible, do the company had to pay interest for the delay.
please suggest.
regards
vinay
d.dun

Dear Vinay
Its wrong to say that there is no provision for payment of gratuity to the employee of your company. The gratuity becomes applicable by default once the employee complete 5 years of service. It becomes payable by virtue of law. You can pay him the gratuity now. Even if he has delayed it for 2 years, if you deny the gratuity and if he approach the court, court might condone the delay. Also the expenses for fighting the case will be more than gratuity amount.

Hi Vinay,
A employee can apply anytime after completion of 5years of job period.
In case he apply after two years after completion of his 12years job period for his gratuity amount then company is not liable to pay the interest, company will liable to pay the interest if the employer delay after receiving the application from employee.
Amiya

Hi Vinay,
if an employee has leave the organization at the time of Full and final settlement only you need to add one more form for caliming the gratuity those who are eliganle for gratuity then it is easy for you to track, and answer for your question is if the employee has leave and applied after 2 years also the comany has liable to pay his gratuity as per Payment of Gratuity Act-1972.

Dear Amiya,
It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. That means, even if the employee doesnot apply for gratuity, the employer should trace him and pay his gratuity. If the employer fails to trace him out, he should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act, ie, District Labour Officer (state establishments) or the Asst. Labour Commissioner (factories and establishments under the control of central), failing which you have to pay interest @ 12% from the date on which gratuity became due, ie, 30 days of employee's leaving.
In the instant case, the employer has to pay gratuity with interest.
Regards,
Madhu.T.K

Mr. Vinay,
It is the responsibility of the employer to settle the gratuity amount along with his final settlement. The gratuity is payable as per the Gratuity Act as a part of his final settlement. As it is a statutory payment it should be paid in time framed by the Act. If the employee is particular about the interest part for the delayed payemnt, your management has to settle his gratuity along with interest.
T Kumar

The ownus lie with the employer to pay the gratuity to the separated employee within 30 days of an employee leaving the organization. In case if the employer fails to do so, then he should

(a) pay the gratuity amount to the ex-employee alongwith interest @ 12% from the 31st day of employee's leaving.

It is the legal responsibility of the employer to pay the gratuity within 30 days of an employee leaving the establishment. That means, even if the employee doesnot apply for gratuity, the employer should trace him and pay his gratuity. If the employer fails to trace him out, he should deposit the amount of gratuity with the appropriate authority under the Payment of Gratuity Act, ie, District Labour Officer (state establishments) or the Asst. Labour Commissioner (factories and establishments under the control of central), failing which you have to pay interest @ 12% from the date on which gratuity became due, ie, 30 days of employee's leaving.

In the instant case, the employer has to pay gratuity with interest.

I agree with views given by Mr. Madhu in payment of Gratuity to employee. It is the statutory obligation on the part of the employer to pay at the time of full and final settlement. Employee need not approach and ask for release of payment of Gratuity. Even employer has no right to stop payment by virtue of showing other parametres like availing personal loan etc.from company.
Hence, it is better to pay and settle the issue immediately.
K.Raja Sekhar

hi all
please let me know about labour license is applicable or not for interior work.
hans pokhriyal

Dear All,
I agree with Mr.Madhu and others as they rightly pointed out it is the duty of the employer to disburse the Gratuity Amount within 30 days-through cheque- even the employee not submitted his claim.
If the gratuity is payable by LIC, through company's gratuity fund, a acknowledgement must be received from the resigned employee.
S.Sethupathy,
Excellent HR Services,
Erode.