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Gratuity Payment And Jurisdiction Issue - CiteHR

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sviyer1953
I filed my application dated 15.10.2012 in Form 'I" Application for Gratuity (to the employer) and Form "N" Application for Direction with ALC (Central) Karnal for payment of Gratuity The estabilshment M/S Alchem international with a turn over of Rs 250 Crores has factories in Faridabad (Hariyana) and Neemrana (Rajasthan) with HO in Delhi, Procuremnt office (for Glorosia leaves) in Mulanoor (Tamil nadu). The company is processing naturally occuring herbal plants, leaves, roots and exports high value extracts and herbal drugs pricing at few lakhs per kg. I was AVP in Faridabad factory and worked for 6 years. Due to unfortunate sudden and successive demise of my mother and two brothers during 2006 and 2008 I was in deep shock and distress. Coupled with it was my wife's ailment of Arthritis. In such situation, I decided to leave the company, explained to the Promoters and submitted my resignation on 22.8.2009 with one month notice period as per the terms of the Appointment letter.But the company relieved me immediately on 24.8.2009 w/o settlement of salary, gratuity, leave pay etc. I approached the management with 10 reminders for payment of Gratuity but the company did nothing to hear/ arrange/deny payment for 3 years. As a well wisher and friend , one JLC , retired from TN government , advised me to file Form N with ALC (Central) since the estabilishment has factories and offices in multistate. ALC (Central) Karnal took about a year to decide the Jurisdiction issue and passed order in favour of the company. In his order ALC recorded my background details as aforesaid but rejected my filing and informed that being a factory, the appropriate authority is state government but not the central. In view of above,

1. Shall I go ahead for Appeal?

2. Shall I accept the order and file with state ? If so please send relevant forms under Haryana state Gratuity rule (instead of Form "I " and "N" as in case of central) as I belong to Tamil Nadu.

From India, Chennai
Gupta VK
148

Hi,
You should file the same claim before the Controlling Authority under Payment of Gratuity Act, Faridabad (Labour Officer, Faridabad) where you served.
Management always try to take benefit of jurisdiction as in your case. Your stand should be that I was appointed and lastly worked at Faridabad.
One should stand for his right.
Thanks and all the best
V K Gupta

From India, Panipat
saiconsult
1897

Dear Aiyer

I have gone through the details of your post.The jurisdictional issue needs to be decided with reference to the question as to who is appropriate government for your factory.Appropriate government has been defined by sec.2(a) of the Payment of Gratuity Act 1972 as under :

(a)Appropriate Government means --

(i) in relation to an establishment-----

a) belonging to or under the control of, the Central Government,

b) having branches in more than one State,

c)of a factory belonging to or under the control of, Central Government,

d)of a major port, mine, oil fieldor raiway company, the Central Government

(ii) in any other case , the State Government.

From the above definition it is clear that Centarl Government can be appropriate government only in case of establishments(not factories) having branches in more than one State and in case of a factory, the Centarl government will be appropriate Government only when it belongs to central government. In your case, the Alchem International, I presume, neither belongs to or run under the control of Centarl Government and tehrefore the approriate government for the above factory is State Government though it has units in more than one state.The ALC(central) has rihghtly decided the jurisdictional issue. You may therefore have to file your application afresh befor ethe asst.labour Commissioner (State) under which jurisdiction farida bad falls. Pleae Note to claim interest for the period of delay since it is not due to any fault of yours.Pleas procure the relevant forms under Haryana State Rules as I do not have them or members can respond to your request.

hope this helps.

B.Saikumar


From India, Mumbai
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