Dear Pradeep,
As you seem to be located in Andhra Pradesh, the AP Shops & Establishments Act, 1988 would be applicable. The term Service Compensation is referred to in this Act in the case of "termination"; this is known as "Service Compensation". Gratuity, on the other hand, is payable under the Gratuity Act. Both are different. Why are you confused? What is the matter?
Please see the attachment for more clarity.
Regards,
Kumar S.
From India, Bangalore
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402As you seem to be located in Andhra Pradesh, the AP Shops & Establishments Act, 1988 would be applicable. The term Service Compensation is referred to in this Act in the case of "termination"; this is known as "Service Compensation". Gratuity, on the other hand, is payable under the Gratuity Act. Both are different. Why are you confused? What is the matter?
Please see the attachment for more clarity.
Regards,
Kumar S.
From India, Bangalore
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Dear Mr. Kumar,
Thank you for your reply.
The Service Compensation is payable even in case of resignation (not only in case of termination) as far as my knowledge is concerned, subject to completion of 1 year service in an establishment where there is no Gratuity as per the A.P. Shops & Establishments Act 1988. Is this correct?
Actually, one of my friends worked in a Company (in A.P.) registered under the A.P. Shops & Establishments Act in a Senior Management position for 1 year and 11 months before resigning. Is he eligible for Service Compensation? Kindly clarify.
Thank you once again.
Best Regards, Pradeep
From India, Hyderabad
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Thank you for your reply.
The Service Compensation is payable even in case of resignation (not only in case of termination) as far as my knowledge is concerned, subject to completion of 1 year service in an establishment where there is no Gratuity as per the A.P. Shops & Establishments Act 1988. Is this correct?
Actually, one of my friends worked in a Company (in A.P.) registered under the A.P. Shops & Establishments Act in a Senior Management position for 1 year and 11 months before resigning. Is he eligible for Service Compensation? Kindly clarify.
Thank you once again.
Best Regards, Pradeep
From India, Hyderabad
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In my view, this sec. 47, specifically 47 (5), should be gone through together with the Gratuity Act. Under the Gratuity Act, the eligibility is for a continuous service of 5 years. Depending on these conditions, one has to study the individual's case. A plain reading says he would be eligible since he won't be paid under the Gratuity Act. However, you may search for some settled case laws which would shed more light on this issue. Right now, I don't have the relevant case laws. You may consult an advocate in AP.
Regards,
Kumar S.
From India, Bangalore
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Regards,
Kumar S.
From India, Bangalore
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Dear Sir,
My son-in-law joined a multinational software company on the 9th of May 2007 and resigned from his job effective from the 10th of February 2012. (The resignation was at the instance of the management, I understand). Unfortunately, he passed away on the 3rd of March 2012.
I kindly seek information on whether his nominee can claim Gratuity, considering he had not completed five years of service at the time of resigning from the job. If there are any relevant decisions and judgments on this matter, please inform me at your earliest convenience. Kindly reply to my email ID <rkrajagopalan@yahoo.co.in>.
Thanks and regards,
R.K. RAJAGOPALAN
No. 9, 7th 'B' Main, Muthiyal Nagar, Bangalore - 560054
Mobile: 09986700475
From India, Bangalore
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My son-in-law joined a multinational software company on the 9th of May 2007 and resigned from his job effective from the 10th of February 2012. (The resignation was at the instance of the management, I understand). Unfortunately, he passed away on the 3rd of March 2012.
I kindly seek information on whether his nominee can claim Gratuity, considering he had not completed five years of service at the time of resigning from the job. If there are any relevant decisions and judgments on this matter, please inform me at your earliest convenience. Kindly reply to my email ID <rkrajagopalan@yahoo.co.in>.
Thanks and regards,
R.K. RAJAGOPALAN
No. 9, 7th 'B' Main, Muthiyal Nagar, Bangalore - 560054
Mobile: 09986700475
From India, Bangalore
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For gratuity calculation purposes, which parts of the salary are considered? Is it just the basic salary or any other allowances like Dearness Allowance? In the private sector, allowances are often named differently, such as Specialization Allowance, in addition to the Basic salary. The Act specifies 'WAGES'. Is this Specialization Allowance included in the definition of 'WAGES'?
From India, Bangalore
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From India, Bangalore
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Dear Vishal,
You have no doubt completed 4 years by 8th April 2011. Since you resigned on 5th March 2012, you should have also worked for 240 days during the twelve-month period from 4th March 2011 to 5th March 2012 to be eligible for gratuity. However, any leave with wages availed by you during the said period of 12 months will be included in calculating 240 days.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai Tel: 09930532927
For gratuity calculation purposes, what parts of the salary are considered? Is it just BASIC or any other allowance like Dearness Allowance? Private sectors call the allowances differently, like Specialization Allowance, apart from Basic as part of the salary. The Act says 'WAGES'. Is this Specialization Allowance part of the 'WAGES' definition?
-Janardhan.
From India, Bangalore
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You have no doubt completed 4 years by 8th April 2011. Since you resigned on 5th March 2012, you should have also worked for 240 days during the twelve-month period from 4th March 2011 to 5th March 2012 to be eligible for gratuity. However, any leave with wages availed by you during the said period of 12 months will be included in calculating 240 days.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai Tel: 09930532927
For gratuity calculation purposes, what parts of the salary are considered? Is it just BASIC or any other allowance like Dearness Allowance? Private sectors call the allowances differently, like Specialization Allowance, apart from Basic as part of the salary. The Act says 'WAGES'. Is this Specialization Allowance part of the 'WAGES' definition?
-Janardhan.
From India, Bangalore
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If the gratuity is part of CTC, then is it mendatory to pay in F&F even if the period is less then 5 years. Regards Tejas K
From India, Bangalore
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From India, Bangalore
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Hi Suresh,
As per my knowledge and experience:
1. The Assistant Commissioner of Labour of your establishment (organization) area is the proper authority under the Payment of Gratuity Act. You can initially make a simple application to him regarding your case. Upon receipt of your application, the authority will contact your previous company and attempt an amicable settlement. If no settlement is reached, then you can have your lawyer file a case for the payment of gratuity under reference.
2. Regarding the reduction of remuneration - since you are working at a senior level, at the time of joining, you must have received the appointment order or documents related to remuneration. Based on these documents (showing higher pay), you can claim in court for a violation of the contract. While this is possible, it is not advisable as making a litigation with the employer at your senior level may cause problems for you. This is my opinion.
SDP
From India, Kolhapur
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As per my knowledge and experience:
1. The Assistant Commissioner of Labour of your establishment (organization) area is the proper authority under the Payment of Gratuity Act. You can initially make a simple application to him regarding your case. Upon receipt of your application, the authority will contact your previous company and attempt an amicable settlement. If no settlement is reached, then you can have your lawyer file a case for the payment of gratuity under reference.
2. Regarding the reduction of remuneration - since you are working at a senior level, at the time of joining, you must have received the appointment order or documents related to remuneration. Based on these documents (showing higher pay), you can claim in court for a violation of the contract. While this is possible, it is not advisable as making a litigation with the employer at your senior level may cause problems for you. This is my opinion.
SDP
From India, Kolhapur
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