Gratuity : Do I have to apply and is there any time limit for the same

HI,

My last working day in the company was 6th Nov 2023 where I completed 4 years 10 month and 6 days ( 306 days in last year) and exactly 5 years if I take my joining date as a CONTRACT hire.
I have requested for gratuity to which they said that I will get but I haven't applied in any format in the company. Is there any form I need to fill and send to them so that later they should not tell that I have not applied for it formally? If I need to apply then how soon I should apply?

Thanks
Sujit

Hi,

To apply for Gratuity you need to use FORM I. Even ordinary request in A4 paper will also sufficient. Many Companies process Gratuity based on eligibility without getting request letter or FORM I also. If your total period of service including contract role exceeds 5 years then for sure you can request for Gratuity. Please ensure that 5 years of continuity of service is there without any long break.

If Employer assured to release Gratuity then you need to wait after relieving. In case of any delay you may take up the issue legally.

Hi, Employer has said just formally that I will get gratuity but there is nothing as documented. So I am afraid if I don't apply may be they can say later that time limit has crossed that's why I wanted to know. My last working day was 6 Nov 2023, so it is already 44 days over. And that is why I want to apply so that I am correct from my end. Should I send a mail and application form I via speed post, will that be sufficient?

Also my case is a bit different,
1. If I include my contract HIRE then I have completed 5 yrs 1 day (my Normal HIRE was just after contract hire so it was continuous)
2. If I only included my NORMAL hire then it is 4 yrs 10 month 6 days i.e. 4 yrs 301 days.

But my employer has informally told I will get gratuity. But as per law am I not eligible considering #1 / #2?
Thanks

Hi,

If you are not sure of Emplopyer's stand and if you want to document the communications related to Gratuity then better submit request letter for Gratuity along with Full and Final settlement. Either you submit the letter by person and take acknowledgement from Employer in duplicate copy or submit the request letter through Registered Post with Acknowledgement Due. As you were on regular rolls for 4.10 years and 2 months contract Employer should consider for Gratuity and DOJ should be your initial joining with the Employer.

The Gratuity Act is applicable, to factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, and to shops and other establishments, Employing 10 or more workmen. So first ensure your Establishment comes under the purview of Gratuity Act.

Gratuity due to an employee who entitled to get it should be paid by the employer within 30 days of the employee leaving the company even if the employee has not demanded the same. Therefore, the company's version that you should apply in prescribe form is not maintainable. It is the responsibility of the employer to find the left employee and pay gratuity. But as rightly said by Lakshmi Narayanan, you can send a request for gratuity in Form I (attached) and see if the company pays it or not.

Please clarify what do you mean by Contract hire. If you were initially hired on a fixed term contract (not under a third party rolls) then joining the company as fixed term contract employee should be the date of joining the employer organisation.

Gratuity is a work benefit that companies provide employees based on their years of service with a company. You usually don't need to apply for it – your employer is responsible for figuring out and giving you the gratuity you're owed. Just keep in mind that the rules can differ depending on where you are.

Typically, there's a minimum time you need to work for a company to qualify for gratuity, often around five years. If you leave your job before hitting this minimum, you might not get gratuity.

To know the specifics for your situation, check your work contract, company rules, or the labor laws in your area. If you're unsure about gratuity, talking to your HR department or seeking legal advice can help you understand your rights.

Thanks for your replies everyone. I will send letter by speed post with acknowledgement.

Thanks