Dear Major Ashish,
In my opinion, there is no bar as far as age is concerned in the case of eligibility for gratuity. He will be entitled to receive gratuity if he works continuously for five years with the same employer where this act is applicable.
Regards,
R.N.Khola
Dear Madam/Sir,
I have a question connected to the topic. A person over the superannuation age (he is 60 years old) has joined our company. Is the company required to make provisions for gratuity in his case? Will he be entitled to gratuity if he serves for 5 years?
Thanks & Regards,
Major Ashish Acharjee
From India, Delhi
421In my opinion, there is no bar as far as age is concerned in the case of eligibility for gratuity. He will be entitled to receive gratuity if he works continuously for five years with the same employer where this act is applicable.
Regards,
R.N.Khola
Dear Madam/Sir,
I have a question connected to the topic. A person over the superannuation age (he is 60 years old) has joined our company. Is the company required to make provisions for gratuity in his case? Will he be entitled to gratuity if he serves for 5 years?
Thanks & Regards,
Major Ashish Acharjee
From India, Delhi
Dear Mr AKM, You are right but gratuity ceiling has been increased form 3.5 Lacs to 10 Lacs. Best regards
From India, Jhajjar
From India, Jhajjar
Dear Mr. R N Khola,
Thank you for your reply. There is still one query. As per section 4A, every non-government employer has to insure their gratuity liability by LIC or another such insurer. However, LIC does not insure the gratuity liability of individuals above 58 years of age. I am unsure whether such a practice by insurers is ethically and legally covered. If insurers are legally covered for this act, then perhaps gratuity coverage is not mandatory for individuals above 58 years of age.
Moreover, in the event that such an individual passes away after serving for a certain period, will the gratuity payable be calculated based on a minimum of 5 years? If insurers like LIC do not cover such risks, how can an employer be compelled to undertake such a risk? I would appreciate your insights on this matter.
Thanks and Regards,
Major Ashish Acharjee
From India, Pune
Thank you for your reply. There is still one query. As per section 4A, every non-government employer has to insure their gratuity liability by LIC or another such insurer. However, LIC does not insure the gratuity liability of individuals above 58 years of age. I am unsure whether such a practice by insurers is ethically and legally covered. If insurers are legally covered for this act, then perhaps gratuity coverage is not mandatory for individuals above 58 years of age.
Moreover, in the event that such an individual passes away after serving for a certain period, will the gratuity payable be calculated based on a minimum of 5 years? If insurers like LIC do not cover such risks, how can an employer be compelled to undertake such a risk? I would appreciate your insights on this matter.
Thanks and Regards,
Major Ashish Acharjee
From India, Pune
Dear Ashish,
It is made clear that so far it is not necessary to have insurance for gratuity payment as the government has not issued any notification for compulsory insurance under section 4A of this Act. As there is no bar relating to age in getting gratuity, I am giving this opinion that the employee is eligible to have gratuity from the employer if he completes five years of service.
According to section 4, 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:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such minors shall be deposited with the controlling authority who shall invest the same for the benefit of such minors in such a bank or other financial institution, as may be prescribed, until such minor attains majority.
Section 4(2): For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned. I do not know much about LIC insurance. Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
It is made clear that so far it is not necessary to have insurance for gratuity payment as the government has not issued any notification for compulsory insurance under section 4A of this Act. As there is no bar relating to age in getting gratuity, I am giving this opinion that the employee is eligible to have gratuity from the employer if he completes five years of service.
According to section 4, 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:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such minors shall be deposited with the controlling authority who shall invest the same for the benefit of such minors in such a bank or other financial institution, as may be prescribed, until such minor attains majority.
Section 4(2): For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned. I do not know much about LIC insurance. Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
Dear Friends,
Under the ID Act, an employee is entitled to receive fifteen days' wages from their employer for each completed year of service, irrespective of whether they are employed directly or through a contractor. According to the law, anyone who is the true master of the worker is responsible for fulfilling this obligation.
Moreover, if an employee, regardless of their status as a contract employee or otherwise, serves under the employer or the master for five years or more, they are entitled to receive fifteen days' wages for each completed year of service.
The method of calculating fifteen days' wages under the ID Act equates to half a month's wages, while under the Payment of Gratuity Act, it is computed by dividing the monthly wages by twenty-six and then multiplying the result by fifteen.
Shimlacharlie
From India, Delhi
Under the ID Act, an employee is entitled to receive fifteen days' wages from their employer for each completed year of service, irrespective of whether they are employed directly or through a contractor. According to the law, anyone who is the true master of the worker is responsible for fulfilling this obligation.
Moreover, if an employee, regardless of their status as a contract employee or otherwise, serves under the employer or the master for five years or more, they are entitled to receive fifteen days' wages for each completed year of service.
The method of calculating fifteen days' wages under the ID Act equates to half a month's wages, while under the Payment of Gratuity Act, it is computed by dividing the monthly wages by twenty-six and then multiplying the result by fifteen.
Shimlacharlie
From India, Delhi
Dear All,
Thank you for your replies; they were very helpful. Kindly let me know if a new employee over the age of 58 joins the company, is the provision of gratuity mandatory for him/her by the company?
From India, Pune
Thank you for your replies; they were very helpful. Kindly let me know if a new employee over the age of 58 joins the company, is the provision of gratuity mandatory for him/her by the company?
From India, Pune
Dear Mr. Khola,
Thank you for letting me know that teachers are covered under the amended gratuity law.
I resigned from my job in 2008 after 20 years of continuous service as a kindergarten teacher. I have filed a case against the institute, the principal, and the trustee. However, there has been no reply from their side. I keep visiting the court and getting another date for the past two months.
How long do you think this will continue? Are there any chances of getting justice?
Thank you.
From India, Mumbai
Thank you for letting me know that teachers are covered under the amended gratuity law.
I resigned from my job in 2008 after 20 years of continuous service as a kindergarten teacher. I have filed a case against the institute, the principal, and the trustee. However, there has been no reply from their side. I keep visiting the court and getting another date for the past two months.
How long do you think this will continue? Are there any chances of getting justice?
Thank you.
From India, Mumbai
Hi,
Let us take the case of the service industry. A company called ABC is a service provider, offering its services at XYZ, which is the client's place. The client (XYZ) is required to sign an agreement for the amount/person deployed.
Let's consider a scenario where we have deployed a supervisor at the client's place, and the client is paying us. The supervisor may be working at the client's place under contract, but they will be on our payroll. It is our responsibility to provide other opportunities if we lose the existing contract or to provide one month's pay along with a bonus and gratuity. This also depends on the salary breakdown we provide at the time of appointment.
Cheers,
balu
From India, Hyderabad
Let us take the case of the service industry. A company called ABC is a service provider, offering its services at XYZ, which is the client's place. The client (XYZ) is required to sign an agreement for the amount/person deployed.
Let's consider a scenario where we have deployed a supervisor at the client's place, and the client is paying us. The supervisor may be working at the client's place under contract, but they will be on our payroll. It is our responsibility to provide other opportunities if we lose the existing contract or to provide one month's pay along with a bonus and gratuity. This also depends on the salary breakdown we provide at the time of appointment.
Cheers,
balu
From India, Hyderabad
Dear Member,
If you have filed the claim case before the Authority under the Payment of Gratuity Act, 1972, then keeping in view the principle of natural justice, this authority must give an opportunity to the respondents before proceeding ex-parte. Courts take years to announce the final judgment, and therefore one is compelled to have patience.
Regards,
R.N. Khola
From India, Delhi
If you have filed the claim case before the Authority under the Payment of Gratuity Act, 1972, then keeping in view the principle of natural justice, this authority must give an opportunity to the respondents before proceeding ex-parte. Courts take years to announce the final judgment, and therefore one is compelled to have patience.
Regards,
R.N. Khola
From India, Delhi
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