You are entitled to gratuity by your company if you have worked there for 4 years, 240 days, some part of which is deducted directly from CTC. The company must pay you the sum of gratuity even if you leave after the stipulated period. In most cases, the process flows smoothly and the company gives you your gratuity in time. However, in some cases, the company may create problems with paying the gratuity. Let us discuss what steps you can take if your company denies you the gratuity sum.
Sending a legal notice to your employer is the first thing you can do in this situation. You can file a complaint with the district office of the labour commissioner if your employer still doesn’t provide you with your gratuity. To investigate the matter, often an Assistant Labor Commissioner is assigned. You should know that the Payment of Gratuity Act, 1972 protects an employee’s right to a gratuity.
Your employer must pay you the gratuity within 30 days after the officer directs your company to do so. If the company still fails to do so, legal action can be taken. If the employer is found guilty, he can be jailed for 6 months to 2 years. However, in most cases, the employer is just made to pay the amount along with interest for the delayed period. Apart from this, many times a fine is also imposed on the employer. A few years back, in one such case in Madhya Pradesh, the court imposed a fine of Rs 1 lakh on the employer.
Only in companies where staff is more than 10 is a gratuity provided. These businesses must complete the gratuity insurance process as well. This makes sure that there will be enough money available for gratuity payments when they are due.
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