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Gratuity payment to employees

Narasimha Prasad (Manager - Accounts and Finance) (44 Points)

06 March 2009

Dear All,

One of the employee is completed 4 years and 11 months, but company is not willing to pay any gratuity.

Can employee take any legal step in this regard.

Thanks in advance

Prasad

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3 Replies

Viswasbhatt (SERVICE) (85 Points)
Replied 08 March 2009

I think employee can take legal action in this case even after completion of 6 months of fifth year.

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consultant) (403 Points)
Replied 10 March 2009

In my opinion, the payment of gratuity will be payable only on completion of 5 years. It will not be possible in case of the employee has resigned, employer has terminated the employee.

But it is possible, if the said employee gives the leave application for 1 month till the completion of 5 years and then he resigns from the duties and it is accepted by the employer after completion of 5 years.