Dear Miss Smita,
You have not mentioned the nature of your project work. Is any construction work currently ongoing? Therefore, you are advised to go through Section 1 of the P G Act, 1972, on applicability.
With Regards,
R.N. Khola
From India, Delhi
422You have not mentioned the nature of your project work. Is any construction work currently ongoing? Therefore, you are advised to go through Section 1 of the P G Act, 1972, on applicability.
With Regards,
R.N. Khola
From India, Delhi
Sir,
The project is to set up a plant that will produce iron rods, and the particular employee is in the Civil Department. Although a few of the project tasks have been completed, the operation has not yet started full-fledged.
Please reply.
From India, Guwahati
The project is to set up a plant that will produce iron rods, and the particular employee is in the Civil Department. Although a few of the project tasks have been completed, the operation has not yet started full-fledged.
Please reply.
From India, Guwahati
Dear Smita,
After going through section 1(3) of the Payment of Gratuity Act, 1972, it does not seem to be covered under this Act.
Opinion/comments submitted as requested.
With Regards,
R.N. Khola
From India, Delhi
After going through section 1(3) of the Payment of Gratuity Act, 1972, it does not seem to be covered under this Act.
Opinion/comments submitted as requested.
With Regards,
R.N. Khola
From India, Delhi
Hi Gopalanis,
Section 2(e) of the Maharashtra Employees of Private Schools (Conditions of Service) Regulations Act, 1977 - Sec.2(17) and (26) - The definition of "Employee" under Section 2(e) of the Act includes and covers, in its compass, the class of teachers employed in an establishment of a school and therefore entitled to the benefits of payment of gratuity.
The Maharashtra Employees of Private Schools (Conditions of Service Regulations) Act, 1977 is a special statute for the benefit of school employees, school management, the society, and the standard of education.
The provisions of the MEPS Act will have to be simultaneously read with the provisions of the Payment of Gratuity Act, as mutually supplemental to each other to achieve the object of the enactments and the constitutional goal mandated in Chapter 4 of the Schools Act. Therefore, it was held that the Payment of Gratuity Act applies to all employees and teachers of the recognized schools governed by the State Act. The respondent-teachers were held entitled to receive their gratuity from the petitioners accordingly.
Case: General Education Academy, Chembur, Mumbai - V - Sudha Vasudeo Desai and others. 2001 (11) L.L.J. 273 (BOM).
AT THE SAME TIME, THE UNDERGIVEN CASE JUDGMENTS SAY TEACHERS ARE NOT ENTITLED TO GRATUITY BENEFITS AS THEY ARE NOT EMPLOYEES.
1) Section 2(e) - Educational institutions also employ persons other than teachers. Section 4 of the Act requires payment of gratuity to an "employee," and unless a person is an "employee," as per the definition contained in Section 2(i), he can have no claim for gratuity. The respondents - retired teachers (not being such employees) were held not entitled to claim gratuity under the Gratuity Act. CASE PRONOUNCED "H.E. Education Society, Barkheda, Bhopal - V - Appellate Authority under Payment of Gratuity Act and Another, (2001) 1. L.L.J. 691 (M.P).
2) Section 2(e) of the Gratuity Act - The authority below was held to have exceeded its jurisdiction in conferring the benefit of the Act to a teacher, although such a teacher cannot be said to be an employee within the meaning of the Act. A teacher educates children, molds their character, builds up their personality, and makes them fit to become responsible citizens. Thus, a teacher cannot be termed as an employee. CASE HELD "Seth Soorajmal Jalan Balika Vidyalaya (Secondary School) and Another - V - Controlling Authority and others. (2001) I. L.L.J. 1249 (Cal).
I suggest you go through your respective State Act to understand whether a provision is given to school teachers to get gratuity benefits.
Mohan Rao
Manager HR
From India, Visakhapatnam
Section 2(e) of the Maharashtra Employees of Private Schools (Conditions of Service) Regulations Act, 1977 - Sec.2(17) and (26) - The definition of "Employee" under Section 2(e) of the Act includes and covers, in its compass, the class of teachers employed in an establishment of a school and therefore entitled to the benefits of payment of gratuity.
The Maharashtra Employees of Private Schools (Conditions of Service Regulations) Act, 1977 is a special statute for the benefit of school employees, school management, the society, and the standard of education.
The provisions of the MEPS Act will have to be simultaneously read with the provisions of the Payment of Gratuity Act, as mutually supplemental to each other to achieve the object of the enactments and the constitutional goal mandated in Chapter 4 of the Schools Act. Therefore, it was held that the Payment of Gratuity Act applies to all employees and teachers of the recognized schools governed by the State Act. The respondent-teachers were held entitled to receive their gratuity from the petitioners accordingly.
Case: General Education Academy, Chembur, Mumbai - V - Sudha Vasudeo Desai and others. 2001 (11) L.L.J. 273 (BOM).
AT THE SAME TIME, THE UNDERGIVEN CASE JUDGMENTS SAY TEACHERS ARE NOT ENTITLED TO GRATUITY BENEFITS AS THEY ARE NOT EMPLOYEES.
1) Section 2(e) - Educational institutions also employ persons other than teachers. Section 4 of the Act requires payment of gratuity to an "employee," and unless a person is an "employee," as per the definition contained in Section 2(i), he can have no claim for gratuity. The respondents - retired teachers (not being such employees) were held not entitled to claim gratuity under the Gratuity Act. CASE PRONOUNCED "H.E. Education Society, Barkheda, Bhopal - V - Appellate Authority under Payment of Gratuity Act and Another, (2001) 1. L.L.J. 691 (M.P).
2) Section 2(e) of the Gratuity Act - The authority below was held to have exceeded its jurisdiction in conferring the benefit of the Act to a teacher, although such a teacher cannot be said to be an employee within the meaning of the Act. A teacher educates children, molds their character, builds up their personality, and makes them fit to become responsible citizens. Thus, a teacher cannot be termed as an employee. CASE HELD "Seth Soorajmal Jalan Balika Vidyalaya (Secondary School) and Another - V - Controlling Authority and others. (2001) I. L.L.J. 1249 (Cal).
I suggest you go through your respective State Act to understand whether a provision is given to school teachers to get gratuity benefits.
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi All,
I have a question. I am working in a software firm. One of our employees worked with the India office for 2 years, was sent on an H1B to the US office for 2 years, and rejoined the India office to work for 1.5 years. Is this employee eligible for gratuity?
Thank you,
Sirisha
From India, Hyderabad
I have a question. I am working in a software firm. One of our employees worked with the India office for 2 years, was sent on an H1B to the US office for 2 years, and rejoined the India office to work for 1.5 years. Is this employee eligible for gratuity?
Thank you,
Sirisha
From India, Hyderabad
Dear Sirisha,
If the employee has worked with the same employer for five years or more continuously without any break in service or without taking any full and final settlement in between the service period as per Section 2A of the Payment of Gratuity Act, 1972, then they are eligible to receive gratuity from the employer.
With Regards,
R.N. Khola
Hi All,
I have a question. I am working in a software firm. One of our employees worked in the India office for 2 years, was then sent on an H1B to the US office for 2 years, and rejoined the India office to work for 1.5 years. Is this employee eligible for gratuity?
Thank you,
Sirisha
From India, Delhi
If the employee has worked with the same employer for five years or more continuously without any break in service or without taking any full and final settlement in between the service period as per Section 2A of the Payment of Gratuity Act, 1972, then they are eligible to receive gratuity from the employer.
With Regards,
R.N. Khola
Hi All,
I have a question. I am working in a software firm. One of our employees worked in the India office for 2 years, was then sent on an H1B to the US office for 2 years, and rejoined the India office to work for 1.5 years. Is this employee eligible for gratuity?
Thank you,
Sirisha
From India, Delhi
As far as the concern about the applicability of Gratuity in respect of Contractual Employee, in my opinion the same is applicable. Let me clarify the same. First, I will go through the applicability section of the Act which says that:-
1,(3)(b): Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;-
(c) such other establishment or class of establishment, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the central Govt may by notification, specify in this behalf.
Now please go through the definition of an employee within the same act as it says;-
2(e) Employee means any person (other than an apprentice) employed on wages in any establishment, factory, mine, oilfield, Plantation, port, railway company, or shop, to do any skilled, semiskilled, or unskilled, manual, supervisory, technical, or clerical work, whether the terms of employment are expressed or implied, (and whether or not such a person is employed in a managerial or administrative capacity but does not include any such person who holds a post under central Govt or a state govt. and is governed by any other Act or by any rules providing for payment of Gratuity.
So if we take into consideration of both these two sections, it is clear that there is no inclusion of contractual employees from the definition of employees, the same is implicit within the definition of an employee under the Act, any person employed irrespective of their status is eligible for payment of gratuity subject to the condition of 5 years of service. There are also judicial pronouncements on the same which has been held, I will come with that later.
In the case of the Payment of Bonus Act, the same is also applicable to contract labor; it has been held by the Supreme Court. I have gone through those judgments and will clarify for you.
Regards,
Sanjay
From India, Delhi
1,(3)(b): Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;-
(c) such other establishment or class of establishment, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the central Govt may by notification, specify in this behalf.
Now please go through the definition of an employee within the same act as it says;-
2(e) Employee means any person (other than an apprentice) employed on wages in any establishment, factory, mine, oilfield, Plantation, port, railway company, or shop, to do any skilled, semiskilled, or unskilled, manual, supervisory, technical, or clerical work, whether the terms of employment are expressed or implied, (and whether or not such a person is employed in a managerial or administrative capacity but does not include any such person who holds a post under central Govt or a state govt. and is governed by any other Act or by any rules providing for payment of Gratuity.
So if we take into consideration of both these two sections, it is clear that there is no inclusion of contractual employees from the definition of employees, the same is implicit within the definition of an employee under the Act, any person employed irrespective of their status is eligible for payment of gratuity subject to the condition of 5 years of service. There are also judicial pronouncements on the same which has been held, I will come with that later.
In the case of the Payment of Bonus Act, the same is also applicable to contract labor; it has been held by the Supreme Court. I have gone through those judgments and will clarify for you.
Regards,
Sanjay
From India, Delhi
Gratuity for Contract Labour
Dear friends,
It is agreed that gratuity is not payable for service less than five years. Since contract labour, as the name suggests, is supposed to be for just short periods, perhaps for this reason, it was not included in the Payment of Gratuity Act. However, Section 25F(b) of the Industrial Disputes Act, 1947 clearly mandates that the workman has been paid at the time of retrenchment compensation, which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
Thus, every contract worker becomes entitled to this compensation, which, in a way, compensates the worker, maybe not fully.
Shimlacharlie
From India, Delhi
Dear friends,
It is agreed that gratuity is not payable for service less than five years. Since contract labour, as the name suggests, is supposed to be for just short periods, perhaps for this reason, it was not included in the Payment of Gratuity Act. However, Section 25F(b) of the Industrial Disputes Act, 1947 clearly mandates that the workman has been paid at the time of retrenchment compensation, which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
Thus, every contract worker becomes entitled to this compensation, which, in a way, compensates the worker, maybe not fully.
Shimlacharlie
From India, Delhi
I have a question for all law experts out there. The term "teacher" has not been included in the definition of an employee under the Payment of Gratuity Act. How will a recently retired teacher from a private school prove that he/she is eligible for gratuity? What references should be given for that.
From India, Chandigarh
From India, Chandigarh
Dear Madam/Sir,
I have a question connected to the topic. A person over superannuation age (he is 60 years of age) has joined our company. Is the company required to make provision for gratuity in his case? Will he be entitled to gratuity if he serves for 5 years?
Thanks & Regards,
Major Ashish Acharjee
From India, Pune
I have a question connected to the topic. A person over superannuation age (he is 60 years of age) has joined our company. Is the company required to make provision for gratuity in his case? Will he be entitled to gratuity if he serves for 5 years?
Thanks & Regards,
Major Ashish Acharjee
From India, Pune
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