My employee in Rajkot has claimed gratuity after resignation but my company is disputing the eligibility; how is gratuity calculated and when is it payable?

Detailed Legal Analysis

Under the Payment of Gratuity Act, 1972, gratuity is payable to an employee who has completed five years of continuous service, upon superannuation, retirement, resignation, death, or disablement. The calculation is fifteen days' wages for each completed year of service, based on the last drawn wages, subject to a statutory ceiling.

The employer must pay gratuity within thirty days of it becoming payable, and if delayed, interest is payable from the due date until payment. The employee can file an application before the Controlling Assistant Labour Commissioner, and if disputed, the matter goes to the Labour Court.

The Gujarat High Court may be approached in writ jurisdiction if the Controlling Authority's order is perverse. The Gujarat Rent Control Act 1999 on gratuity may have corresponding state rules for enforcement.

Failure to pay gratuity attracts imprisonment up to one year and fine under Section 9.