This Gratuity Act 1972 provides the maximum retirement benefits available for employees in any state in the country. Gratuity is generally cash, which comes to employees after their retirement when the employees are paid gratuity from the funds made available by the employer with the companies for the employees. It has been observed that the employer delays the payment usually and at times refuses payment of gratuity altogether. If you are also being refused or delayed any gratuity payment, here are the steps to claim gratuity legally:
Sum Up The Prerequisites
1.You need to ascertain if you fulfill the criteria for claiming gratuity:
- To be eligible to receive gratuity, an employee should have been in continuous service for a minimum period of five years.
- Gratuity can be claimed if the employment has been terminated on the ground of superannuation, resignation, or discharge; it is also payable in case of death/disability.
Step 2: Written Demand
In case the employer does not give the gratuity amount, avoid such refusals and delay of gratuity payments. Formal demand of gratuity payment may be made by the following means:
- Fill in Form I (Application for Payment of Gratuity) and submit it to the employer.
- Keep a copy of the submitted application.
- Send it through registered post or email; the receipt of posting or acknowledgment in email would serve as proof of submission.
Step 3: Complaint to the Controlling Authority
The complaint to the controlling authority under the Gratuity Act may be made against employers that neglect to pay gratuity after thirty days’ request:
- Fill Form N and submit it to the local labour commissioner or controlling authority of your area.
- Attach documents: appointment letter, salary slips, and proof of continuous service.
- The authority shall summon the employer for hearing.
Step 4: Complaint to the Labour Court
If the above does not get you relief:
- Complaint in the labour court or industrial tribunal under section 8 of the Gratuity Act.
- It would be wise to consult a lawyer or practitioner in labour law for your case.
- Demand damages and overdue interest on gratuity.
Step 5: Law Under Section 9
But for delay in gratuity payment, the employer would be liable for fine or imprisonment for a term not exceeding six months. On your request, failure by an employer to pay could cause the matter to be decided in civil court in a suit for the recovery of gratuity.
Conclusion
If the company fails to pay gratuity, you must follow the procedures described above. Be meticulous in keeping records of all communications and involve a lawyer as and when necessary. The law supports your case, and over time, with the right inclination, you should be able to claw back your gratuity.
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