Gratuity New Rules: Following the implementation of the new labor law in the country, major changes have been made to the rules regarding gratuity. Previously, it was mandatory to work for a company for at least five years to receive gratuity, but now the new rule entitles employees to this benefit even after just one year of service. Despite this, companies often refuse to pay gratuity to employees. It’s important to know what to do in such a situation and how to complain.
What to do if you don’t receive gratuity?
If you’ve completed one year with a company and are eligible for gratuity according to the new rules, but the company is refusing to pay, first speak to your HR department or reporting manager. Sometimes, problems arise due to unupdated documents or miscommunication.
You can clarify that you’re entitled to gratuity by providing your joining date and official records. In most cases, the matter is resolved at this stage.
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What to do if you don’t get a solution from HR?
If the situation isn’t resolved at the HR level, you should take formal action. This involves sending a legal notice to the company. The notice clearly states that you are entitled to gratuity after one year of service and that the company cannot refuse to pay it. This notice must provide a specific deadline so that the company is obligated to respond.
Where to complain if the company doesn’t respond?
If the company doesn’t respond to the legal notice or flatly refuses, you should seek government assistance. A written complaint is filed with the District Labor Commissioner’s office. After receiving the complaint, the Assistant Labor Commissioner typically investigates the matter and convenes a hearing by summoning both parties. The officer verifies your documents, joining date, tenure, and gratuity eligibility. If your claim is found to be valid, the company is directed to pay the gratuity.
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What if the company still doesn’t pay the money after the order?
If the company fails to pay the gratuity within 30 days of the Labor Commissioner’s order, the matter becomes serious. In such cases, the company can be fined, and the law also provides for imprisonment ranging from six months to two years. This entire process is formal, so proper documentation and timely action are crucial.
