Dear sir,

I worked for my company from April 2003 to December 2010. I have resigned now without any problems with the company. I asked for gratuity settlement, but they say there is no such policy of paying gratuity in the company. My latest earnings were Rs. 10,750/- per month.

Kindly guide me in this regard, whether I should go legally or not?

From India, Bangalore

Dear Srinivas S.K,

Payment of Gratuity is a statutory obligation of the employer and can be denied only under extreme circumstances (damage or loss to the property belonging to the employer, riotous or disorderly conduct, offense involving moral turpitude, etc.).

As far as your case is concerned, before giving any suggestions, we would like to know:

1. The type of your organization: whether a factory under the Factory Act, establishment registered under the Shops & Establishment Act, or any other type of organization.
2. Strength of your organization.
3. Your employment conditions: whether a regular employee, consultant, retainership, etc.

Regards,
Kamal Prasoon Sinha
22-12-2010
Pune

From India, Pune

Dear sir,

Thank you for the reply and information provided. I was working for one of the leading authorized dealers of HYUNDAI service station as an accounts manager of a particular branch. There are 7 branches in total of Hyundai, with approximately 1500 employees. Until now, 50% of the employees were non-rolls, and for the past 3 months, all the staff have been transitioned to rolls. However, I have been a permanent employee on rolls since October 2003 until the 15th of December 2010. I believe this falls under the Shops and Establishments Act.

From India, Bangalore

Dear Mr. Srinivas S.K,

Payment of gratuity cannot be denied in your case. It means your ex-employer is not fulfilling their statutory obligation, and this may invite penal action against them.

On your own, you should submit Form 'I' (Application of Gratuity by an Employee) to your employer and obtain an acknowledgment. There is a possibility that your employer will not accept Form 'I' or may refuse to give an acknowledgment. In this case, you can send Form 'I' via A/D registered post and wait for 15 days to observe the action your employer takes on your application.

Form 'I' is attached for your reference. Gratuity is always calculated based on basic+DA.

Please feel free to reach out to me regarding this matter.

Regards,

From India, Pune
Attached Files (Download Requires Membership)
File Type: pdf Form I- gratuity.pdf (10.1 KB, 394 views)


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