• Gratuity claim under section 4(1)(C) of Gratuity Act,1972

Dear Sir,

I am Ranganathan, aged 52 years and an Epilepsy patient, undergoing treatment. I joined a private accounting firm in the month of Dec, 2018 and submitted my resignation in Nov,2022 due to work load increase, delivery pressure and disappointment with poor annual salary increment which not in line with work load etc resulted in frequent epilepsy attacks due to too much hours of work and pressure from Jul'2022 and forced to increase dosage of medicines but it still spoiled the health.

Finally, I submitted my resignation on 24th Nov,2022 as below: 

"Dear Nalini,

I hereby submit my resignation due to personal reasons with 3 months’ notice period and request you to accept the same. The decision is not easy for me but I found no other option at this situation...!

I shall be grateful to the firm for the job opportunity in the bookkeeping team by trusting me and believe I fulfilled their expectations to the best of my knowledge and efforts.

I also take this opportunity to convey my thanks to all the personnel who closely worked/working with me during my 4 years of service in Prager Metis and they will always be remembered by me.

I conclude that I assure you of fulfilling the HR relieving formalities in order and would be so thankful if you could relieve me from the service as early as possible.

Please acknowledge receipt and my best wishes to you all."

And claimed my gratuity under section 4(1)(C) "(c) on his death or disablement due to accident or disease: Provided that the 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:

But the HR department rejected my application mentioning as below:

"Dear Mr. Ranganathan,

Your prayer for requisition of Gratuity cannot be entertained under any circumstances as disablement under Section 4 means disablement that incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

We would like to clarify further that you had tendered your resignation due to personal reasons and we had relieved you on 28-02-203 based on the resignation submitted. Please note that we did not terminate your services due to disablement. Hence the question of disablement is not applicable in your case and therefore your request for Gratuity is not tenable."

Now I humbly request your kind feedback and guidance to understand as an Epileptic person Am I eligible for gratuity considering "disablement due to accident or disease" or not eligible as rejected by HR.

Thanking you,

Yours faithfully,
Ranganathan.K
Asked 1 year ago in Labour

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15 Answers

You are not entitled to gratuity 

 

company has not terminated your services due to disablement 

 

3) you tendered your resignation for personal reasons on completing 4 years of services and are not entitled to gratuity 

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

 

The wordings of section are 

 

Provided that the 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 disablemen

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

 

Company has given valid reasons for denying your claim for gratuity 

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

- An employee is eligible to receive gratuity, only if he has completed minimum five years of service with an establishment.

- However, it can be paid before the completion of five years at the death of an employee or if he has become disabled due to accident or disease.
- Further , as per Madras High Court, the gratuity of an employee who completes 4 years and 240 days of service  is eligible for gratuity.

- Further, as per Section 2A(1) , an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave. 

- And further, Section 4(2) of the Payment of Gratuity Act provides that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee for the whole year. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity , if the employee has had continuous service of 190 / 240 days.

- Since, you have not completed  the tenure of 4 years and 240 days , then you are not entitled the get the same , however as your resignation is due to the said disease then you can claim the gratuity on the ground of disability.

- Hence, you can claim the said benefit , after submitting the medical proof of the symptoms or treatments for your epilepsy to show the reason to your inability to continue the work .

Mohammed Shahzad
Advocate, Delhi
14515 Answers
221 Consultations

An explanation to the  clause of the section referred to in your post is given below:

Explanation .— For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

In fact this clause has been clearly mentioned by your employer in their reply to your claim for gratuity. while denying the to pay the claim.

 

Moreover you have tendered resignation on the grounds of personal reasons and also served the three months notice period.

No where you have mentioned that you are resigning the employment due to health issues and also if the medical issues compelled you to put down yor papers, you would have sought to waive the notice period as well for the said reasons.

Whatever you are not eligible for gratuity by invoking the said provisions of law and since you have not worked for  5 years period you are not eligible for gratuity.  

T Kalaiselvan
Advocate, Vellore
87143 Answers
2340 Consultations

Your reference to the disease covered in the 12th point of the referred link covering the persons with disabilities under PWD act 2016;

however please note that this provision or privilege would be extended or applicable only if you were terminated from service due to the said disablement, whereas you have tendered your resignation on the grounds of personal reasons, hence your claim is not maintainable in law.

T Kalaiselvan
Advocate, Vellore
87143 Answers
2340 Consultations

In your resignation letter you should have mentioned health reasons 

 

2) further your services ought to have been terminated by employer 

 

3) in the present case there is no termination of employment 

 

4) you are not entitled to any gratuity 

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

The employer has categorically explained the provisions of law without leaving any doubt about the non eligibility for gratuity claim.

Any legal action that may linger in your mind or you propose to initiate in furtherance may not fetch you any fruitful result and if you still are adamant of putting anything of that type in motion may result in waste of time, money and energy.

 

T Kalaiselvan
Advocate, Vellore
87143 Answers
2340 Consultations

a) Merely stating health reasons will not make sense that you are disabled, besides personal reasons need not be assumed that it covers health issues only.

b) Now you are trying to justify your claim by claiming that you are not knowing the procedures of law, but for your information, ignorance of law cannot be claimed as an excuse. 

c) It is not the fault of the employer, you cannot focus employer in the dark light for your fault.

d) Law has no excuse for this 

e) Not only senior persons of the organisation even the entire people around you were aware of your health issues, whereas you failed to highlight it in your resignation letter nor you had sought your employer to consider allotting you a light employment or nature of work due to yor health issues, hence the claim now being made by you is just an after thought.

f) Yes, the said  disease covered in the 12th point of the referred link covering the persons with disabilities under PWD act 2016;  so what, did you make any reference about it in your resignation letter/

g) There is no legal infirmity in the company rejecting your claim, they are legally right but if you plan to sue the company then you will be at loss.

 

T Kalaiselvan
Advocate, Vellore
87143 Answers
2340 Consultations

You don’t have to submit it you can challenge any illegal action against you

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

The facts of your case are different 

 

2) in present case you have submitted voluntary resignation 

 

3) it is not your case that employer has terminated your service on grounds of disability 

 

4) hence you are not entitled to gratuity under section 4 (1) c) 

Ajay Sethi
Advocate, Mumbai
96942 Answers
7822 Consultations

The reasons you have stated for resignation was 'personal grounds', hence the employer will not travel beyond your reason/grounds, therefore he accepted your resignation and relieved you on the competition of the notice period. 

The employer cannot be found to have committed any fault or wrong action against you.

If you feel that injustice has been done to you (which otherwise is not found), you can approach appropriate legal forum seeking relief and remedy.

T Kalaiselvan
Advocate, Vellore
87143 Answers
2340 Consultations

You have your remedies intact the said position taken against you is illegal

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

- My detailed reply is already submitted , 

- You can approach the High Court for getting the same. 

Mohammed Shahzad
Advocate, Delhi
14515 Answers
221 Consultations

Dear Sir,

You should try to explain to the HR that your Epileptic Seizures intensified because of exposure to Solvents in your workplace and try to bring your condition under Occupational diseases, there is a separate schedule regarding the occupational diseases in the Workmen Compensation Act, 1923 and explain to them that during the attacks of Epilepsy, the body gets completely disabled and stress that epilepsy can lead to permanent brain damage if neglected and that all you were trying to do was taking precautions for not becoming brain dead and lead a totally disabled life. Kindly show that because of Epilepsy, you go through a total partial disablement during the attacks. You can actually produce studies conducted by different universities on how epilepsy gets intensified because of exposure to solvents (glue, CFC, Acetone, Benzene etc) and how during the work tenure you suffered recurrent attacks because of exposure to solvents. If the HR replies vaguely, you can file an Application under Sec 4(1)(c) of the Payment of Gratuity Act, 1923 before the Gratuity Controlling Authority in Chennai. Please include the above points that I have highlighted in your petition and then please employ a good Advocate who can lead the case with thoughts similar to mine. Your case shall turn out to be a word battle and a hard battle beneficial to so many people who are similarly disabled. 

 

 

Regards,

Sanmathi S. Rao

Sanmathi S. Rao
Advocate, Bengaluru
46 Answers

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