I have completed 6 years in Delhi based company and resigned but now company is not giving gratuity as it is not mentioned in offer etter. kindy suggest what to do. Sharad Kulshrestha

Ans: The revised amount is for tax exemption. The gratuity is calculated based on your last drawn basic salary

Ans: Hi,
I understand your concern. You have not mentioned the profession and the industry you have been into. The Act was amended in 2007. However, the amendment in 2007 was mainly to extend the benefits of gratuity to teachers.

Ans: Resolving Gratuity Payment Delay: A Strategic Approach
Dealing with delayed gratuity payments can be challenging, but with the right approach, you can navigate through the process effectively. Let's outline a strategic plan to address this issue.

Understanding the Situation
Assessing the Delay

Understand the reasons behind the delay in gratuity payment from your former employer.
Gather all relevant documentation, including your gratuity entitlement and communication with the company.
Reviewing Gratuity Regulations

Familiarize yourself with the Gratuity Act and regulations governing gratuity payments to ensure your rights are protected.
Initiating Communication
Contacting the Company

Reach out to your former employer promptly to inquire about the status of your gratuity payment.
Maintain a polite and professional tone in all communications to facilitate constructive dialogue.
Documenting Communication

Keep a record of all interactions with the company, including emails, letters, and phone calls, to track progress and maintain clarity.
Formalizing the Complaint
Drafting a Formal Complaint

If informal communication does not yield results, consider drafting a formal complaint addressing the delay in gratuity payment.
Clearly outline the details of the delay, including dates, amounts owed, and relevant supporting documents.
Submitting the Complaint

Submit the formal complaint to the appropriate authority within the company, such as the HR department or senior management.
Ensure that the complaint is delivered via certified mail or email to establish a paper trail.
Seeking Legal Assistance
Consulting Legal Experts

If efforts to resolve the issue internally prove unsuccessful, consider seeking legal advice from experts specializing in labor law and gratuity regulations.
Legal professionals can provide guidance on your rights, potential courses of action, and the legal recourse available to you.
Exploring Legal Remedies

Explore the possibility of legal action against the company if all other avenues for resolution have been exhausted.
Legal remedies may include filing a complaint with labor authorities or pursuing litigation to recover the outstanding gratuity amount.
Patience and Persistence
Maintaining Patience

Exercise patience throughout the process, as resolving gratuity payment delays may take time and persistence.
Remain focused on your objective of securing the gratuity amount owed to you while navigating through any challenges that may arise.
Following Up Regularly

Follow up regularly with the company and any relevant authorities to ensure that your complaint is being addressed and progress is being made.
Stay proactive and engaged in the resolution process to expedite a favorable outcome.
Conclusion
Addressing delayed gratuity payments requires a proactive and systematic approach, involving effective communication, formal complaint procedures, and potential legal recourse. By following the outlined steps and seeking appropriate assistance when needed, you can work towards resolving the issue and securing the gratuity amount rightfully owed to you.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Dear Mr.Sanjay

You have to work with the company to get what you want...ball is in their court...keep your ego aside...don't lose your cool when you talk to them...Be patient.

As you have worked with the company you know who is the key decision maker and influencer. Work with the influencer.

As a back up take legal opinion but don't threaten them with any legal actions.

Keep pursuing in a patient way. It may take some time. Don't lose hope.



All the best.

Ans: I have give you a brief explanation about how gratuity is calculated.
Sure this will assist you in understanding the methodologies.

The amount of gratuity for employees whose employer is covered under the Gratuity Act can be calculated using the formula:
Gratuity = n*b*15 / 26

Where n = Tenure of service completed in the company
b = Last drawn basic salary + dearness allowance

For example, you have worked with the XYZ company for a period of 15 years. Your last drawn basic salary along with dearness allowance was Rs 30,000. Hence:

The amount of gratuity = 15 * 30,000 * 15 / 26 = Rs 2,59,615

Two points must be noted here:

As per the Gratuity Act, the amount of gratuity cannot be more than Rs 20 lakh. Any excesses would be treated as ex-gratia.

If the number of years you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure. Suppose your tenure of service is 16 years 7 months, then you receive the gratuity for 17 years. Otherwise, its for 16 years if it happens to be 16 years 4 months.
In your case 5 years 5 months hence 5 year's as you are below the half yearly for upper round up.


For employees whose employer is not covered under the Gratuity Act, the gratuity amount would be calculated as per the half-month salary on each completed year of service.
The formula is: (15 * Your last drawn salary * the working tenure) / 30.

For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act.

Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

In regard to your leave,please get a clarification from your HR, as to why they have deducted 30 days of earned leave.