PERSONAL FINANCE
If an employee is refused a gratuity to which they are legally entitled, the first step is to make a formal notification to the employer.
A portion of your "cost to the company" (CTC) is always set aside for gratuities when you start a new job. However, not every job termination will result in a gratuity payment. That's because of the regulations around gratuity payments. When an employee has worked for an employer for 4 years, 240 days, they are entitled to gratuity, some of which is deducted directly from their CTC. The firm usually has no issues with the timely payment of the gratuity, but in certain situations, there may be issues. What recourse does an employee have in this case if their employer refuses to pay the gratuity to which they are legally entitled?
What Is Gratuity?
An employee's gratuity is a part of their income that is not included in their regular paycheck but is instead given to them in a lump amount when specific criteria are met. Everything having to do with gratuities is governed by the Payment of Gratuity Act, 1972.
Unlike Provident Fund contributions, which are taken out of every paycheck, gratuity is not taxed to the recipient. However, based on whether or not one is protected by the Gratuity Act, a determination of whether or not one is free from income tax is made.
Have you not received your gratuity? Here's what to do
A formal notification to your employer is the first step you can do. If your employer still refuses to pay the gratuity to which you are legally entitled, you may submit a complaint with the district office of the labour commissioner. Remember that your entitlement to a gratuity is safeguarded under the Payment of Gratuity Act of 1972.
The corporation has 30 days to comply with the officer's request for payment of the gratuity to which he or she is entitled. Legal action may be considered if the corporation continues to ignore the demand. If the business owner is proven guilty, he faces a possible prison sentence of between six months and two years.
Also, READ: LIC Jeevan Saral: Pay once, get Rs 52,000 pension; purchase, eligibility details
Nonetheless, in many instances, the employer is just ordered to pay the amount, plus interest for the lapsed time period. In addition, the company will be fined for its negligence.
Some years ago, a case like this made headlines in Madhya Pradesh when the court there fined the employer Rs 1 lakh.
Does Sanya Malhotra's 'Mrs' promote a no-marriage culture among women?
Caring for Ageing Parents? Essential tips to manage health, finances, and well-being
Meet Gautam Adani’s daughter-in-law Paridhi Adani: Know about her assets, career, family, and more
Why has Premanand Maharaj stopped his morning yatras at 2 am?
Sonu Sood BREAKS SILENCE on arrest warrant against him in fraud case: 'It is sad that celebs...'
Akshata Murty once confronted her father and Infosys co-founder Narayana Murthy: 'My real dad is...'
Meet Alexis Wilkins, Trump's FBI chief pick Kash Patel's 'mystery girlfriend,' her profession is...
Fire breaks out at Mahakumbh Nagar camp, officials say no casualties reported so far
Who is Mohini Mohan Datta, mystery man set to get Rs 500 crore through Ratan Tata's will?
Cristiano Ronaldo makes shocking statement, breaks Portugal's hearts: 'I never thought about...'
Ludhiana court issues arrest warrant against Sonu Sood in fraud case
Happy Rose Day 2025: Significance of different coloured roses on Day 1 of Valentine's week
Salman Khan REVEALS why he avoids eating beef and pork: 'Main maanta hu meri maa...'
Shah Rukh Khan-Saif Ali Khan vs Aryan Khan-Ibrahim Khan: Who should be in KHNH2!
Why Israel's Benjamin Netanyahu gifted Donald Trump golden pager? It is a reference to...
Mob in Bangladesh destroys ousted PM Sheikh Hasina's family home
ISRO's EOS-06 satellite captures Phytoplankton concentration on global scale
IND vs ENG: Will Virat Kohli play in 2nd ODI vs England? Shubman Gill provides huge injury update
Who is Kiran Chaudhury? PCS officer caught in bribe case, just 4 years after posting
Jeet Adani-Diva Shah's wedding today: Know venue, gifts for guests and more
Meet woman, who works in Rs 163000 crore company, daughter of Hyderabad’s richest man
This is world's greenest railway station, 170 years old, home to over 7,000 plants, it's in....
As Sky Force nears Rs 150 crore, Nimrat Kaur treats househelp, her kids with movie screening
IND vs ENG: Shreyas Iyer creates history, becomes first player to achieve THIS massive milestone
Meet man, India's richest banker, who has bought Rs 202 crore property, his net worth is Rs...
'Heard there was....': Former India head coach provides major update on Virat Kohli's injury
A New Geopolitical Era: India and Israel's Role in the Evolving Middle East
David Warner’s touching moment with fans after Dubai Capitals reaches final of DP World ILT20
India’s Largest Book Stall Network: PrashantAdvait Foundation’s Mission to Revive Reading Culture
Mawra Hocane stuns in pastel mint green lehenga at her wedding to Ameer Gilani
Deepinder Goyal's Zomato changes its name, CEO shares journey of company, it is now called...
Rose Day 2025: Know the date, history, significance of each rose colour ahead of Valentine's day
'BJP-led NDA works for Santushtikaran, not Tushtikaran': PM Modi in Rajya Sabha
Who is Belle Gibson? Australian wellness guru created fake cancer story and later...
DP World ILT20 2025: Dubai Capitals clinch last ball thriller against Desert Vipers to reach final
Jeet Adani-Diva Shah wedding: First pic from Gautam Adani's mansion OUT as wedding festivities begin
Sunita Williams’ Spacewalk: A Record-Breaking Mission and a Stunning Selfie from Space
IND vs ENG: Ravindra Jadeja creates history in Nagpur, surpasses James Anderson to become....
Can IAS officers change cadres after marriage? Here's what rules say
Pavan Kumar Joshi innovates unemployment benefits payment security
Anil Ambani's company's share price surges over 6 per cent after it earns profit of Rs...
Why Dale Bhagwagar is Bollywood's only PR guru
Meet Anjum Khan, wife of cricket star Shivam Dube, her net worth is Rs...
IAF Mirage 2000 fighter aircraft crashes in MP's Shivpuri during training sortie
Meet IAS Tina Dabi's mother, who cleared UPSC to become IES, later resigned due to...
Good news for Infosys employees! Company to roll out annual hike letters by end of...
BIG win for India's largest govt bank, earns Rs 16891 crore profit in just...
Ajith Kumar's fans celebrate, throng theatres after Vidaamuyarchi's worldwide release: Watch