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RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)

25 June 2016

My friend worked in a pvt ltd company for about 18 years 10 months.employer is refusing to pay gratuity to him stating that company is in financial loss for the last 2 years. How can he get his gratuity. Please the company has already made the provision of gratuity when there were more than 10 employee.Now there is no employee in the company.Please advise is gratuity payable to my friend under these circumstances.

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Ajeet Singh (Service ) (190 Points)
Replied 26 June 2016

Dear Rajesh,

You can approach the labour office of your area however, the most important thing is to obtain relieving letter cum no due certificate from your employer. Don't approach your labour office unless you get these two.

The relieving letter will serve the purpose of proof of employment. You can follow the following procedure:

a) Once you get relieving letter, you send a letter to your employer by Registered A/D asking for the gratuity.

b) If no reply is received, send a second letter (or reminder) quoting reference of your first letter. Send this letter also by Registered A/D. However, this time, mark copy of this letter to the labour officer of your area.

c) If employer does not take any action even after fortnight or so, go to labour office, with all the proof of your employment, and past correspondence and explain to him your problem. Labour officer, if busy, may give appointment on specified date. Go again and explain him everything.

d) Labour officer will treat this as industrial dispute and will call both the parties. He will give his verdict (most probably, it should be in your favour). At this time you need to prove that there was no break in your employment and yours was continuous service of 4 years and 240 days at least or more.

e) If your employer is still adamant and does not pay you gratuity, approach some lawyer and send a lawyer's notice.

f) If employer does not respond to the lawyer's notice also then you are free to file suit against your employer.

g) If there are so many persons who could not get gratuity, then better all of you follow the same procedure and while approaching labour officer all of you go together. Your collective representation will add weight to your demand.

All the Best...