Non-Payment of Gratuity

My father died in 2011. He was a banker. From 2011 to till now, we have not received any amount of his gratuity. Please guide me. will RTI be useful for me to know my father's gratuity fund?

Answer (1)

Team Legistify

Team Legistify

  • Sector-1, Noida

Yes, you can file a case under Payment of Gratuity Act in the case of non-payment of gratuity with the help of best civil litigation lawyers in India. The rule stipulates that in case of death of the employee, the rule of 5 year service is not mandatory and the payment will be made to the nominee. In cases, where no nominee is mentioned, it is made to the legal heir. Assuming, that you fall under the definition of a legal heir as a son, you are entitled to claim gratuity with interest owing to the long lapse of time. In case, there existed a clause in the employement agreement, it is advised to look through the same once.

Gratuity is a retirement benefit paid as gratitude to the employees who have rendered a continuous service for at least five years to incentivize them so that they continue working efficiently. It is an amount paid to an employee based on the duration of his total service but an employee becomes eligible only after he has completed 5 years of his service. Gratuity is paid to an employee when he either retires or his employment is terminated or he resigns or upon his death. Gratuity is given the force of law by the Payment of Gratuity Act 1972, which is further administered and enforced by the Central Government and the designated establishments under its control.

The Payment of Gratuity Act, 1972 is applicable to every factory, mine, oilfield, plantation, port and railway company. An employee who has rendered at least five years of service becomes entitled to the said benefit. The pre-requisite of completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement to the extent that the person is literally unable to provide the required services.

In the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominee or heir is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.

Answered on 28 Sep 2018


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