The first thing the employees can do is send a legal notice to the employer if the entitled gratuity is denied.
New Delhi: Every employee is entitled to gratuity by the employer if they have worked there for 4 years, 240 days, some part of which is deducted directly from CTC. As per the policy, the company must pay the sum of gratuity even if the employees leave after the stipulated period. While in most of the case, the process goes smooth in paying the gratuity on time, in other cases, the company may create problems with paying the gratuity. In this situation, what steps an employee can take if their company denies the entitled gratuity.
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The first thing you can do is send a legal notice to your employer. Then, you can also file a complaint with the district office of the labour commissioner if your employer still doesn’t provide you the entitled gratuity. The employees must note that the Payment of Gratuity Act, 1972 protects an employee’s right to a gratuity.
The employer must pay the entitled gratuity within 30 days after the officer directs the company to do so. If the company still fails to do so, legal action can be taken. In case, if the employer is found guilty, he can be jailed for 6 months to 2 years.
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However, in many of the cases, the employer is just made to pay the amount along with interest for the delayed period. Moreover, a penalty is also imposed on the employer.
One such case came to the limelight a few years back in Madhya Pradesh, when the court imposed a fine of Rs 1 lakh on the employer.
