Dear All,
I had worked in CPSE/PSU HIL from 19.10.2016 to 23.08.2021 under the management cadre where i was looking for a state business , my total service tenure was 4 years and 310 days, In my company we had above 400 employees and out of that 80 under management cadre , Now HR is refusing to pay the gratuity and saying that as per gratuity rule 1972 and CPSE/PSU guideline minimum 5 year of service is required , I have changed my job in Pvt. Industry so gratuity can not be transferred here, what shall i do, the amount is about 1.90 lakh and it means a lot for me , shall i file a case or leave it , please suggest.
From India, Bhubaneswar
I had worked in CPSE/PSU HIL from 19.10.2016 to 23.08.2021 under the management cadre where i was looking for a state business , my total service tenure was 4 years and 310 days, In my company we had above 400 employees and out of that 80 under management cadre , Now HR is refusing to pay the gratuity and saying that as per gratuity rule 1972 and CPSE/PSU guideline minimum 5 year of service is required , I have changed my job in Pvt. Industry so gratuity can not be transferred here, what shall i do, the amount is about 1.90 lakh and it means a lot for me , shall i file a case or leave it , please suggest.
From India, Bhubaneswar
Dear Suryakanth,
It is well settled as per the ratio decidendi of the judgment of Madras High Court in Mettur Beardsell Ltd v Central Appellate Authority under the PG Act that if the employee has completed 240 days of continuous service in the fifth year, he is eligble to claim gratuity.
Therefore, if the service details provided in your post are correct, then the contention of your HR cannot be accepted. No guidelines of an organization can run counter to any judicial precedent laid down on the same issue.
Gratuity of a particular spell of accrued service in one organization cannot be transferred to another on the exit of the employee unless there is a bilateral agreement between the organizations and the exit is a transfer of service.
Try to explain the above legal position to the HR. Still if he holds on to his stand and you are denied gratuity, file a claim for gratuity with interest and costs before the Controlling Authority under the PG Act,1972 where the previous establishment is situated.
From India, Salem
5967It is well settled as per the ratio decidendi of the judgment of Madras High Court in Mettur Beardsell Ltd v Central Appellate Authority under the PG Act that if the employee has completed 240 days of continuous service in the fifth year, he is eligble to claim gratuity.
Therefore, if the service details provided in your post are correct, then the contention of your HR cannot be accepted. No guidelines of an organization can run counter to any judicial precedent laid down on the same issue.
Gratuity of a particular spell of accrued service in one organization cannot be transferred to another on the exit of the employee unless there is a bilateral agreement between the organizations and the exit is a transfer of service.
Try to explain the above legal position to the HR. Still if he holds on to his stand and you are denied gratuity, file a claim for gratuity with interest and costs before the Controlling Authority under the PG Act,1972 where the previous establishment is situated.
From India, Salem
Dear Sir Umakanthan.M,
Thank you for your valuable suggestion , in this regard i have already shared the judgement of Madras High-count but HR is saying that it is applicable in case of workman , not applicable in case of Management staff, is that correct or he is not having that much knowledge, Kindly guide and what action should i take now.
Thanks
From India, Bhubaneswar
Thank you for your valuable suggestion , in this regard i have already shared the judgement of Madras High-count but HR is saying that it is applicable in case of workman , not applicable in case of Management staff, is that correct or he is not having that much knowledge, Kindly guide and what action should i take now.
Thanks
From India, Bhubaneswar
Dear Sir,
There is no such distinction of worker and manager in PG Act. It defines only 'employee'. It appears that the organization wish to avoid the liability. In such a case, you may approach the authority as suggested.
From India, Hyderabad
There is no such distinction of worker and manager in PG Act. It defines only 'employee'. It appears that the organization wish to avoid the liability. In such a case, you may approach the authority as suggested.
From India, Hyderabad
Dear Colleague,
As briefed by our Colleagues, under the circumstances that despite your repeated representation, if still your organization is not open for understanding and settling your Gratuity:
1. Step 1: Request your HR to discuss with the Local Controlling Authority under the Payment of Gratuity ( Dy Commissioner of Labour ( Controlling Authority appointed under the Payment of Gratuity Act 1972 for getting clarity on the legal stand.
2. Step 2: If still they are not willing to discuss with Authority mentioned above, then you meet the Controlling Authority under the Payment of Gratuity -Dy Commissioner of Labour (Controlling Authority appointed under the Payment of Gratuity Act 1972) and brief your side. Normally they will call the HR and sort out.
3. Further if required on merits he will ask you to file Forms under the Act and hear the case officially and pass order directing the Management to pay gratuity if he is satisfied that as per Law you are eligible to get.
All the Best, God Bless
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
As briefed by our Colleagues, under the circumstances that despite your repeated representation, if still your organization is not open for understanding and settling your Gratuity:
1. Step 1: Request your HR to discuss with the Local Controlling Authority under the Payment of Gratuity ( Dy Commissioner of Labour ( Controlling Authority appointed under the Payment of Gratuity Act 1972 for getting clarity on the legal stand.
2. Step 2: If still they are not willing to discuss with Authority mentioned above, then you meet the Controlling Authority under the Payment of Gratuity -Dy Commissioner of Labour (Controlling Authority appointed under the Payment of Gratuity Act 1972) and brief your side. Normally they will call the HR and sort out.
3. Further if required on merits he will ask you to file Forms under the Act and hear the case officially and pass order directing the Management to pay gratuity if he is satisfied that as per Law you are eligible to get.
All the Best, God Bless
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
Dear Suryakant,
What your HR is saying is the fact because you have not completed five years of service. The Madras High Court judgement is a case specific, so it can not be wholesome rule.
To have your gratuity, you lodge complaint before the controlling authority for non-payment of gratuity by your employer. In other case you can file a case in Odisha High Court for the same.
From India, Mumbai
What your HR is saying is the fact because you have not completed five years of service. The Madras High Court judgement is a case specific, so it can not be wholesome rule.
To have your gratuity, you lodge complaint before the controlling authority for non-payment of gratuity by your employer. In other case you can file a case in Odisha High Court for the same.
From India, Mumbai
Its true as per the judgement of Madras High-court if a employee has completed 4 year 240 days then he is eligible for Gratuity. It is applicable to all employees whether staff / worker
From India, Hyderabad
From India, Hyderabad
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf