Mr Anonymous Can you please tell the members the provisions in POG Act to the effect that gratuity is a gratitude for loyalty and can be withheld for any termination. Varghese Mathew
From India, Thiruvananthapuram
912From India, Thiruvananthapuram
Let us first be clear of what Gratuity means. The dictionary meaning of "Gratuity" says "something given as a reward for long and meritorious service". However, upon passing of Payment of Gratuity Act in 1972, Gratuity became a right of employee and its non-payment became a liability calling recovery as well as prosecution. So the old concept of bounty or reward is no more in existence. The rules, rights and quantum of Gratuity have been framed and one can not overlook them with old concept of gratuity that it is grace of Employer.
Considering the provisions of Payment Of Gratuity Act, generally the employer cannot withhold amount of gratuity. However, Section 4(6) of the act allows employer to forfeit the amount of gratuity, if services of employee have been terminated for his acts of negligence, willful omission causing any damage or loss, then to the extent of loos or damage.
2. It may be totally or partially forfeited if services of employee are terminated for his riotous or disorderly conduct or an act of violence;
and
for an offence involving moral turpitude committed in the course of employment.
I have some resentment over the use of word "absconding" as referred in the Notice. Normally such a description is used in Criminal Law when an accused or a convict is untraceable or his address is unknown and then by moving the Court by the prosecution, he is declared as "abscond". Are the employees who are absent on work for a few days become automatically "absconding" by merely calling such by employer?. Will not this remark of employer amount to aspersions?
So considering all, in case of Mr. Singha nothing of the above has happened so that he is deprived of his right to claim Gratuity.
However, it is not clear what type of job he was doing in the company.
I think, Mr. Singha is fully entitled to the amount of Gratuity for his service, and as such, he must take proper steps to claim the amount. .
From India, Kolhapur
Considering the provisions of Payment Of Gratuity Act, generally the employer cannot withhold amount of gratuity. However, Section 4(6) of the act allows employer to forfeit the amount of gratuity, if services of employee have been terminated for his acts of negligence, willful omission causing any damage or loss, then to the extent of loos or damage.
2. It may be totally or partially forfeited if services of employee are terminated for his riotous or disorderly conduct or an act of violence;
and
for an offence involving moral turpitude committed in the course of employment.
I have some resentment over the use of word "absconding" as referred in the Notice. Normally such a description is used in Criminal Law when an accused or a convict is untraceable or his address is unknown and then by moving the Court by the prosecution, he is declared as "abscond". Are the employees who are absent on work for a few days become automatically "absconding" by merely calling such by employer?. Will not this remark of employer amount to aspersions?
So considering all, in case of Mr. Singha nothing of the above has happened so that he is deprived of his right to claim Gratuity.
However, it is not clear what type of job he was doing in the company.
I think, Mr. Singha is fully entitled to the amount of Gratuity for his service, and as such, he must take proper steps to claim the amount. .
From India, Kolhapur
Dear Mr.Singha
I feel company should give your due Gratuity amount since you have worked for more than 5 years. However, check your appointment letter , designation ( if it is " apprentice " partly during your 5 years + service period) then you are not eligible to receive gratuity. Better check with company HR Department once again and if required approach controlling authority under Gratutiy Act ( Asst.commissioner of Labour) in the area , who can guide you properly.
B.Dakshina Murty
From India, Hyderabad
I feel company should give your due Gratuity amount since you have worked for more than 5 years. However, check your appointment letter , designation ( if it is " apprentice " partly during your 5 years + service period) then you are not eligible to receive gratuity. Better check with company HR Department once again and if required approach controlling authority under Gratutiy Act ( Asst.commissioner of Labour) in the area , who can guide you properly.
B.Dakshina Murty
From India, Hyderabad
I think you should go and meet your HR department and try to settle the matter ,as you have done a mistake by not giving them a resignation copy ,to claim the gratuity your employer needs to submit your resignation and your settlement copy.if you will not present in front of them these formalities can not be completed.
From India, Mumbai
From India, Mumbai
dear all,
i met HR n they said fnf is handled by finance dept. HR will
call me once check is ready...
today again i called to one of senior HR in company's support office.
She too said gratuity will not be paid as i was not followed the process....
i want to discuss in detail indly contact me at
regards,
kmsingha
From India
i met HR n they said fnf is handled by finance dept. HR will
call me once check is ready...
today again i called to one of senior HR in company's support office.
She too said gratuity will not be paid as i was not followed the process....
i want to discuss in detail indly contact me at
regards,
kmsingha
From India
Dear team,
I need some clarity in gratuity payment..
we are working weekly 5 days in a week, presently we are providing gratuity for those who completed 4 years 240 days..but the discussion is people arguing 4 years 190 days also we need to provide gratuity....can you help me in this if we have to give 4 years 190 days means can you provide any judgement or any provision in gratuity act?
And next one is people not completed even 4 years during their retirement they are asking gratuity! whether we need to give gratuity to them?
kindly share your valuable advice along with necessary legal evidence.......
From India, Madras
I need some clarity in gratuity payment..
we are working weekly 5 days in a week, presently we are providing gratuity for those who completed 4 years 240 days..but the discussion is people arguing 4 years 190 days also we need to provide gratuity....can you help me in this if we have to give 4 years 190 days means can you provide any judgement or any provision in gratuity act?
And next one is people not completed even 4 years during their retirement they are asking gratuity! whether we need to give gratuity to them?
kindly share your valuable advice along with necessary legal evidence.......
From India, Madras
Dear Chithambararaj,
The Section 2A of The Payment of Gratuity Act, itself says that:
*Continuous service.- For the purposes of this Act,--
(1) an employee shall be 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 sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order 3*** treating the absence as break in service has been passed in accordance
with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six
months, he shall be deemed to be in continuous service under the employer--
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than--
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
Hope this is help you.
From India, Delhi
The Section 2A of The Payment of Gratuity Act, itself says that:
*Continuous service.- For the purposes of this Act,--
(1) an employee shall be 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 sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order 3*** treating the absence as break in service has been passed in accordance
with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six
months, he shall be deemed to be in continuous service under the employer--
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than--
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
Hope this is help you.
From India, Delhi
Dear arya, Do u hav any practical experience in above said matter I.e have u processed gratuity payment for above raised question?
From India, Madras
From India, Madras
Dear Mr. Chithambararaj,
I never faced such situation in my carrier till now. This is my 2nd Job in 5 years Carrier.
Normally, what I have seen that if any employee entered in the 5th year of service and want to change the job, then he/ s he don't left the company by calculating 190 / 240 days as they don't want to create such situation of fight with employer. They clearly complete 5 years and then resign from the job, and only 1 case I have seen till date.
As I have always kept good relation with the employee of the organization, so they easily discuss their views with me without any hesitation.
This situation comes only, when there is any problem with the employee - employer relationship, which I think both of them should handle carefully.
From India, Delhi
I never faced such situation in my carrier till now. This is my 2nd Job in 5 years Carrier.
Normally, what I have seen that if any employee entered in the 5th year of service and want to change the job, then he/ s he don't left the company by calculating 190 / 240 days as they don't want to create such situation of fight with employer. They clearly complete 5 years and then resign from the job, and only 1 case I have seen till date.
As I have always kept good relation with the employee of the organization, so they easily discuss their views with me without any hesitation.
This situation comes only, when there is any problem with the employee - employer relationship, which I think both of them should handle carefully.
From India, Delhi
One very important judgement on the gratuity, I would like to share with you, https://www.citehr.com/208040-madras...-gratuity.html
Whereas, on question of payment of gratuity to an employee who as even not completed 4 years is never arise.
But, as it is due to Retirement, then one important question arise here is that, was that employee joined your organization for the first time before these 4 years only..?? Or there is Service Continuity matter..?? Or that employee have served your organization at any point of time in past..??
I am asking this because, i have seen a matter in my last organization in which our HR Manager Sir paid Gratuity to an employee with the same case (4 year service). And, that was not due to any Act or Law, But only to Honor that employee.
From India, Delhi
Whereas, on question of payment of gratuity to an employee who as even not completed 4 years is never arise.
But, as it is due to Retirement, then one important question arise here is that, was that employee joined your organization for the first time before these 4 years only..?? Or there is Service Continuity matter..?? Or that employee have served your organization at any point of time in past..??
I am asking this because, i have seen a matter in my last organization in which our HR Manager Sir paid Gratuity to an employee with the same case (4 year service). And, that was not due to any Act or Law, But only to Honor that employee.
From India, Delhi
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