My organisation is a Pvt Ltd. company in architectural service. Actually My boss runs two pvt. ltd. companies in same profession and at same address and he continuously rotate the employees with in these two companies. The numbers of both companies was more than 10, but at present we are only 4 people working in one company and second company is also running but no business done from last 3 years. I also working from 8 year and 5 months. Please advice that i have right to claim gratuity or not. Thanks
I understand that this is not a manufacturing company but it is only a commercial establishment. Therefore, your establishment will come under the coverage of Payment of Gratuity Act if you have at least 10 employees at any time. Now, your average number of employees is less than 10 but your employer has another company which is also into the same business and to which you have the practice of deploying your employees on a regular basis. It should also be assumed that there exists financial integrality, an arrangement whereby funds of this company will be utilized in the other company and vice versa. If these can be proved, the two companies could be clubbed for all purposes relating to labour laws. As such, the Employees Provident Fund authorities can make your establishment covered by EPF & MP Act, ESI officials can do the same for extending their schemes to your establishment and so on. In the similar way, Labour authorities can also treat your two establishments as one and make it covered by Payment of Gratuity Act also. Once covered by the Payment of Gratuity Act, you will become entitled to gratuity once you have the required service of 5 years with the employer.
If you have already left and the employer has refused to pay gratuity saying that the Act is not applicable to the organisation having less than 10 employees, the you can approach the Labour Department, the Controlling authority under the Payment of Gratuity Act and raise a dispute. You can narrate that there existed financial interdependency between the companies and there have been instances of shifting the employees and therefore, the two units are one and the same.
Madhu.T.K
From India, Kannur
4249If you have already left and the employer has refused to pay gratuity saying that the Act is not applicable to the organisation having less than 10 employees, the you can approach the Labour Department, the Controlling authority under the Payment of Gratuity Act and raise a dispute. You can narrate that there existed financial interdependency between the companies and there have been instances of shifting the employees and therefore, the two units are one and the same.
Madhu.T.K
From India, Kannur
Dear Surendra,
First of fall you need to know that your organisation is registered under Gratuity act 1972 or not, is there any gratuity scheme has been taken from your employer or not.
If you have worked more than 05 years or in a same organisation without changing the date of joining then you are eligible for gratuity.
You should clarify the all points first from your employer.....
From India, Faridabad
First of fall you need to know that your organisation is registered under Gratuity act 1972 or not, is there any gratuity scheme has been taken from your employer or not.
If you have worked more than 05 years or in a same organisation without changing the date of joining then you are eligible for gratuity.
You should clarify the all points first from your employer.....
From India, Faridabad
From the above facts, I assume that your employer is rotating employees from one company to another periodically ONLY TO AVOID paying statutory dues like ESI, PF etc. which is an unfair labour practice.
Please follow the advice of Mr. Madhu TK as mentioned above. If you have left the organisation, then send FORM I first to your employer claiming the gratuity.
From India, Kolkata
Please follow the advice of Mr. Madhu TK as mentioned above. If you have left the organisation, then send FORM I first to your employer claiming the gratuity.
From India, Kolkata
From your post it appears that employees are not issued appointment letters. If they were issued then transfer letter would have been of help.
Is attendance of employees is recorded anywhere? If yes then this record will help. The boss will not part with gratuity, you will have to fight for it. How prepared are you?
From India, Mumbai
Is attendance of employees is recorded anywhere? If yes then this record will help. The boss will not part with gratuity, you will have to fight for it. How prepared are you?
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc