Gratuity Payment: If you work in a company, you get many types of financial benefits. One of these is gratuity. It is generally said that if you work continuously for 5 years in a company, you become entitled to gratuity. But few people know that even if you work in a company for 4 years 240 days (4 years 8 months), you are still eligible to get gratuity because it is considered for the full 5 years and the employee is given gratuity by calculating it for 5 years. But suppose the company refuses to give you gratuity even after working for 5 years or 4 years 240 days, then what will you do? Know your rights here.
Right to send legal notice to employer
If the employee is entitled to gratuity, but still the company refuses to give him gratuity, then it is considered a violation of the Gratuity Payment Act, 1972. In such a situation, the employee can send a legal notice to the employer.
If work is not done even after sending the notice…
If the problem of the employee is not resolved even after receiving the notice and the amount is not paid to him, then the employee can complain against the company to the District Labor Commissioner. If found guilty in the case, the company has to pay the gratuity amount along with penalty and interest.
In how many days does one get the gratuity money
After leaving the job, the employee has to apply to his employer to get gratuity. According to the rule, after applying for gratuity, the employer should deposit the gratuity amount in the employee’s bank account within 30 days. If the company does not pay within the stipulated time, then it has to pay this amount along with interest.
The 5-year rule does not apply in this case
If an employee dies during the job, then the entire amount deposited in his gratuity account is given to his nominee. In such a case, the condition of at least 5 years of employment does not apply.
In this situation, the company can stop the gratuity money
If an employee is accused of unethical behavior and due to his negligence the company has suffered a major loss, then the company has the right not to pay his gratuity amount. But to stop the gratuity, the company will first have to present the evidence and the reason for it. For whatever reason the company is giving, it has to issue a show cause notice to the employee. After this, both the parties are heard. The gratuity money will be stopped only after the employee is found guilty. But even in such a case, the company will deduct only the amount that it has suffered.
If the company is not registered under the Gratuity Act…
When the company or institution is not registered under the Gratuity Act, the employees do not come under the Gratuity Act. In such a situation, it is the discretion of the company to pay or not pay gratuity.
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