Legal Notice to Employer for Non-Payment of Gratuity

Table Of Content

• What is a Gratuity and who is Eligible for it?
• What Legal Actions can I take for the Non-Payment of Gratuity?
• Can I Send a Legal Notice for the Non-Payment of Gratuity?
• How to send a Legal Notice for Non-Payment of Gratuity to the Employer?
• Do I need any Documents to send a Legal Notice?
• What if the Employer doesn’t Reply to my Legal Notice?
• Conclusion

Gratuity is one of the most significant Employee benefits as a token of appreciation for their long-term association with an organisation. However, not all Employees receive their due gratuity without facing problems. If you find yourself in such a situation, sending a Legal Notice to your Employer for non-payment of gratuity can be an effective step. In this blog, let’s break down everything you need about gratuity, the legal actions you can take, and how to send a Legal Notice.

What is a Gratuity and who is Eligible for it?

Gratuity is a monetary benefit extended by an Employer to an Employee in appreciation of his or her continuous services and loyalty to the organization. It acts as a retirement benefit that provides a sense of security for Employees after leaving the company on account of resignation, retirement, or for any other reason, on fulfilment of certain conditions. Gratuity in India comes under the Payment of Gratuity Act, of 1972, which covers organizations with ten or more Employees.

If you’ve worked for at least five continuous years with your Employer, you’re entitled to receive gratuity. In case, the termination of employment is due to death or disability, then a period of five years is not required, and the payment of the gratuity is made to the nominee of the deceased person.

The gratuity amount is calculated based on the following formula:
Gratuity = (Last drawn salary × 15 × years of service) / 26

For instance, if your last drawn salary was ₹50,000 and you worked for 10 years, your gratuity would be: (50,000 × 15 × 10) / 26 = ₹2,88,461

Note: If an Employee dies during service or becomes disabled, the five-year minimum rule doesn’t apply, and where the Employees are terminated for misconduct, gratuity may not be provided.

What Legal Actions can I take for the Non-Payment of Gratuity?

If your Employer fails to pay your gratuity or pays it after the prescribed timeline of 30 days, then you have a legal remedy. Here is what you can do:

1. Approach the Employer informally: Start by discussing the matter directly with your HR department or Employer. Often, misunderstandings can be resolved at this stage.
2. Formal letter of complaint: If informal discussions don’t work, write to the Employer seeking an explanation and payment.
3. Sending a Legal Notice: In case the above-mentioned steps don’t work, the sending of a Legal Notice to Employer for non-payment of gratuity to the Employer is the next viable step.
4. Approach the Controlling Authority: You can also submit a complaint to the concerned Controlling Authority in your city or region, such as the Labour Commissioner.
5. File a court case: In case all others fail, you can move into court.

Also Read; Legal Notice against Employee

Can I Send a Legal Notice for the Non-Payment of Gratuity?

Yes! A Legal Notice is one of the most effective tools to demand what’s rightfully yours. It serves as a formal intimation to your Employer, stating that they must pay your gratuity within a specified time, failing which legal action will follow.

Sending a Legal Notice shows your seriousness and often compels Employers to act quickly to avoid further complications.

How to send a Legal Notice for Non-Payment of Gratuity to the Employer?

Sending a Legal Notice for the non-payment of gratuity is a straightforwa rd process if you know the steps, and if you don’t follow these:

1. Visit our website edrafter.in and select Legal Notice in Services section of the main menu.
2. Now, you will be redirected to our Legal Notice page, where you need to fill a form to provide us some basic information.
3. Now, we will schedule a call for you with Advocate and will share the details on your email.
4. During the call, Advocate will discuss your case and depending on that he will draft a Legal Notice that he will share with you on your email for your approval.
5. After reading the draft, you can ask the advocate to make any required changes or approve the same if satisfied with the draft.
6. Once approved, Advocate will send the hard copy of Legal Notice via courier and the soft copy via email and Whatsapp to the other party.

Also Read; Legal Notice for Recovery of Money

Do I need any Documents to send a Legal Notice?

Yes, having proper Documentation strengthens your case and must be attached as annexures when sending the Legal Notice. Here’s what you’ll need:

• Appointment letter: Proof of your employment.
• Salary slips: To establish your last drawn salary.
• Service letter: Proof of your tenure.
• Communication records: Any email or written communication with the Employer regarding gratuity.
• Resignation/termination letter: Proof of when your employment ended.
• Identity proof: To establish your identity.

What if the Employer doesn’t Reply to my Legal Notice?

If the Employer ignores your Legal Notice, don’t panic. You still have options:

1. File a complaint with the Controlling Authority: Approach the Labour Commissioner or other designated. They’ll call your Employer and mediate.
2. Move to court: If the Employer doesn’t comply with the Controlling Authority’s decision, you can approach a court of law to claim your gratuity.

However, in most cases, Employers reply to a Legal Notice to avoid legal hassles, as legal disputes can harm their reputation.

Conclusion

Gratuity isn’t just a financial benefit; it’s a recognition of your dedication and hard work. If your Employer withholds this right, sending a Legal Notice is a powerful way to demand what’s owed to you. Ensure you follow the legal procedure meticulously and gather all necessary Documents to support your case.

Remember, filing a case is all about fighting for your rights. If you are in a vulnerable situation, avail yourself of expert advice from a lawyer. Take necessary measures that allow you to receive your gratuity so that no other Employee has to face such an issue.