One of my employees worked for me for 10 years and then left my organization without informing me. He came back after 6 months to claim gratuity. We have a total staff strength of 4.
Legally, am I bound to pay him?
From India, Kolkata
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Legally, am I bound to pay him?
From India, Kolkata
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One of my employees worked for me for 10 years and then left my organization without informing me. He came back after 6 months to claim gratuity. We have a total staff strength of 4.
Legally, am I bound to pay him?
From India, Kolkata
Acknowledge(0)Amend(0)
Legally, am I bound to pay him?
From India, Kolkata
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Coverage Under Gratuity Act
Firstly, the act applies to factories, mines, oil fields, plantations, ports, and Railway companies.
Secondly, the act applies to every shop establishment within the meaning of any notification for the time being in force in relation to shops and establishments in a state. To be covered under this clause, the shop and establishment must have 10 or more persons employed on any day of the preceding 12 months.
Thirdly, the act applies to such other establishments or classes of establishments in which 10 or more employees are employed on any day of the preceding 12 months as the central government may, by notification published in the official gazette, specify for this purpose.
As held in the case of Municipal Board Gangapur v Controlling Authority under POG Act, since the Gratuity Act is a social legislation, it should be given a more expansive application. The term "establishment" must be interpreted liberally; hence, a municipality is deemed to be covered under Section 1.
However, the Gratuity Act does not apply to apprentices and persons who hold civil posts under the central government or state government, as they are governed by other enactments or rules providing for the payment of gratuity. Under Section 5, the government may exempt any establishment covered by the Gratuity Act from the provisions of this act if the employees of such establishment receive gratuity or pension benefits not lower than those provided by the act.
Read more at [Payment of Gratuity Act, Rules, Forms, Returns & All Other Information](http://www.shramsamadhan.com/p/payment-of-gratuity-act-rules.html)
From India, Kolkata
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186Firstly, the act applies to factories, mines, oil fields, plantations, ports, and Railway companies.
Secondly, the act applies to every shop establishment within the meaning of any notification for the time being in force in relation to shops and establishments in a state. To be covered under this clause, the shop and establishment must have 10 or more persons employed on any day of the preceding 12 months.
Thirdly, the act applies to such other establishments or classes of establishments in which 10 or more employees are employed on any day of the preceding 12 months as the central government may, by notification published in the official gazette, specify for this purpose.
As held in the case of Municipal Board Gangapur v Controlling Authority under POG Act, since the Gratuity Act is a social legislation, it should be given a more expansive application. The term "establishment" must be interpreted liberally; hence, a municipality is deemed to be covered under Section 1.
However, the Gratuity Act does not apply to apprentices and persons who hold civil posts under the central government or state government, as they are governed by other enactments or rules providing for the payment of gratuity. Under Section 5, the government may exempt any establishment covered by the Gratuity Act from the provisions of this act if the employees of such establishment receive gratuity or pension benefits not lower than those provided by the act.
Read more at [Payment of Gratuity Act, Rules, Forms, Returns & All Other Information](http://www.shramsamadhan.com/p/payment-of-gratuity-act-rules.html)
From India, Kolkata
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Away Since you have only 4 staff the POG Act is not applicable. But if you had 10 employees at any time the Act is applicable.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Can anybody update me on whether there has been any change in the time frame for eligibility for gratuity? Somebody told me that a new notification was issued stating that the time frame for gratuity eligibility has been reduced to 2.5 years from 5 years. Is this information correct? Additionally, has the calculation method changed from 15 days' salary per year to 30 days' salary per year? Can someone confirm these updates?
From India, Bangalore
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From India, Bangalore
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