Right to Gratuity of Employees : No company can withhold gratuity money from its employees without any reason. If the company refuses to pay gratuity to an employee without any fault, then in this situation the employee can send a legal notice against the company.
If an employee works in the same company for more than 5 years continuously, then as per the rules, gratuity is paid to that employee by the company. But many times it is also seen that companies refuse to pay gratuity. In such a situation, it is important for you to know what rights the employee has when such a situation arises and how he can recover his entitled amount.
If your company is also reluctant to pay you gratuity then you can take some steps. Let us know when the company can refuse to pay gratuity money and what you can do if your money is wrongly withheld.
Employees have these rights
If an employee has served a company for full five years and the company refuses to pay his gratuity without any fault, then in this situation the employee can send a legal notice against the company. If the problem is not resolved even after the notice, then the employees can complain against the company to the District Labor Commissioner. If the company is found guilty in the investigation, then along with the gratuity, it also has to pay fine and interest to the employee.
File a complaint with the controlling authority:
If your attempts to resolve the issue kindly do not yield any results, you can file a complaint with the controlling authority under the Payment of Gratuity Act, 1972. The controlling authority is an officer appointed by the government to deal with complaints related to gratuity.
You can complain online in the http://pgportal.gov.in and you can file the complaint within 90 days from the date on which the gratuity became payable. You will need to submit an application in Form I, along with supporting documents such as proof of employment, proof of the gratuity amounts due, and proof of the employer’s refusal to pay.
Approach the labor court:
If the controlling authority fails to resolve the issue, you can approach the labor court. The labor court is a judicial body that deals with disputes between employers and employees. You will need to file a complaint in the labor court and attend the hearing.
The company cannot withhold the entire amount of gratuity.
If the company suffers any loss due to unethical behavior or negligence of an employee and the employee is found guilty in the investigation, then even then the company cannot withhold the entire amount of gratuity. In such a situation, the company can deduct from the amount of gratuity only that much money as it has suffered loss. The employee still has the right to the remaining gratuity amount.
