How to file a complaint if the employer refuses to pay gratuity?

Gratuity is a lump sum payment given by an employer to an employee as a token of appreciation for their service to the company.

It is a mandatory benefit under the Payment of Gratuity Act, 1972, which applies to all establishments employing ten or more persons.

However, in some cases, an employer may refuse to pay gratuity to an employee, which can cause a lot of inconvenience and financial hardship.

Understanding the rules and regulations:

The first step in filing a complaint against an employer for non-payment of gratuity is to understand the rules and regulations governing the payment of gratuity. As per the Payment of Gratuity Act, 1972, an employee who has completed five years of continuous service with an organisation is eligible to receive gratuity.

The amount of gratuity payable is calculated as 15 days of wages for each completed year of service or part thereof in excess of six months. There is a maximum gratuity amount of Rs 20 lakh that can be paid.

Attempt to resolve the issue amicably:

If your employer has refused to pay gratuity, the first step is to try and resolve the issue amicably. You can write a letter to your employer, stating that you are entitled to gratuity as per the Payment of Gratuity Act, 1972, and requesting them to release the payment.

You can also approach the human resources department or the accounts department of your organization and ask for their assistance in resolving the issue.

File a complaint with the controlling authority:

If your attempts to resolve the issue kindly do not yield any results, you can file a complaint with the controlling authority under the Payment of Gratuity Act, 1972. The controlling authority is an officer appointed by the government to deal with complaints related to gratuity.

You can complain online in the http://pgportal.gov.in and you can file the complaint within 90 days from the date on which the gratuity became payable. You will need to submit an application in Form I, along with supporting documents such as proof of employment, proof of the gratuity amounts due, and proof of the employer's refusal to pay.

Approach the labor court:

If the controlling authority fails to resolve the issue, you can approach the labor court. The labor court is a judicial body that deals with disputes between employers and employees. You will need to file a complaint in the labor court and attend the hearing.

The court will hear both parties and give a verdict.