Q&A: What To Do If Your Employer Is Not Giving Gratuity After Retirement?

I am a 64-year-old retiree. I have worked in a private company in two tenures — 2000-10 and 2012-22. After my retirement, the company paid me gratuity for the second tenure but is not giving it for the first tenure of 2000-10. Am I eligible for the gratuity of both the tenures? If yes, what options do I have now to get the gratuity?

Answer: The payment of gratuity to an employee by the employer is covered by the Payment of Gratuity Act, 1972. Gratuity is a statutory right of an employee under the Act. Withholding of such statutory right to an employee is not permissible under any circumstances other than those mentioned in section 4(6) of the Act.

To answer the queries, yes indeed, as per Section 4 of the Act, the employee (Teacher) is eligible for receipt of gratuity from the institution, for the period of 2000-10, as well as for the period between 2012-2022. In the present case, the employee is eligible to receive Gratuity for the period of 2000-2010, for having completed five (5) continuous years of service from 2000-2010.

Furthermore, the employee’s re-employment for the period of 2012-2022 shall be considered as fresh employment, for the purpose of the Act, and post-completion of five years, the employee is eligible to receive the gratuity for the period of 2012-2022.

The Applicant who is aggrieved by non-receipt of gratuity shall send a legal notice, along with documents of employment to the concerned institution to make the payment of the non-paid amount of gratuity along with interest at 10 per cent (10 per cent per annum as the rate of simple interest as prescribed under the Notification under section 7(3-A) dated October 1, 1987) from the date from which the amount fell due for payment by the institution.

In case the gratuity still remains unpaid from the employer then statutory right under Section 8 for Recovery of Gratuity can be availed, which is to file a complaint before the Controlling Authority prescribed by the state notifications, which at certain places would be the office of the Labour Commissioner. The Controlling Authority post satisfaction of the documents on record, issues a certificate of collection to the Collector to recover the amount from the employer.

(Smita Paliwal is partner at King Stubb & Kasiva, Advocates and Attorneys)

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