Categories: Technology

Gratuity Rule: In these situations the company has the right to stop gratuity

You worked in a company for 5 years, but the company still did not give you gratuity, what will you do? Under what circumstances does the company have the right to stop your gratuity? If the company is not giving gratuity with the intention of usurping it, then what rights do you have?

According to the rules, if you work honestly for 5 years or more in a company, then you become entitled to gratuity. This amount is given to the employee at the time of leaving the job or at the time of retirement by calculating the total period of his job. But suppose you worked in a company for 5 years, but the company still did not give you gratuity, then what will you do? After all, in what situations does the company have the right to stop your gratuity? If the company is not giving gratuity with the intention of usurping it, then what rights do you have? Know about it here-

Also Read : Employed people Update: Basic tax exemption limit will be ₹5 lakh in the budget! Employed people in focus

In these situations the company has the right to stop gratuity

If an employee is accused of unethical behaviour or if the company has suffered a major loss due to his negligence, then the company has the right to not pay his gratuity amount. But to stop the gratuity, the company will first have to present evidence and the reason for it. Whatever reason the company is giving, it has to issue a show cause notice to the employee for that.

After this, both the parties are heard. The gratuity money will be stopped only after the employee is found guilty. But even in such a case, the company will deduct only the amount of loss it has suffered. Apart from this, when the company or institution is not registered under the Gratuity Act, then the employees do not come under the Gratuity Act. In such a situation, it is the discretion of the company to pay or not pay gratuity.

If the company has stopped the money with the intention of usurping it then…

If you worked in a company with full dedication and hard work for 5 years, but even after this the company did not give you gratuity, then in such a situation you have the right to take action against the company. In this situation, the employee can send a notice against the company. If even after this his problem is not resolved and he is not paid the amount, then the employee can complain against the company to the District Labor Commissioner. If found guilty in the case, the company has to pay the gratuity amount along with penalty and interest.

These are the rules of gratuity

– If 10 or more people work in a private or government company, then that company should give the benefit of gratuity to all the employees. Apart from the company, shops, mines, factories also
come under the purview of this rule.

– If an employee has worked for 4 years and 8 months in the company, then his job will be considered for a full 5 years and he will get the amount of gratuity as per 5 years. If he has worked for less than 4 years and 8 months, then his job period will be counted as 4 years and in such a case he will not get gratuity.

– If an employee dies during his job, the entire amount deposited in his gratuity account is given to his nominee (Gratuity nominee). In such a case, the condition of working for at least 5 years does not apply.

– The notice period of the employee is also counted in the period of gratuity. Suppose you resigned from a company after working for four and a half years, but served a notice period of two months after resignation. In such a case, your period of employment will be counted as 4 years and 8 months only. And the amount of gratuity will be given by considering it as 5 years.

– Any company can give its employee a maximum of Rs 20 lakh as gratuity. The amount received as gratuity is tax free. This rule applies to both government jobs and private jobs.

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  • Pl consider, slab rate as max as 15% only instead of 30% and try to implement of min tax as Rs 500 /- up to income more than 3 lakhs, so that maximum tax payers will come and we should able to collect as maximum of 25 to 30 crs persons as to file ITax as target

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