Is gratuity applicable in the case of employees in a charitable association registered under the Travancore Cochin Literary, Scientific, and Charitable Societies Registration Act, 1955?
I'm working in one such organization in a different post but would like to help.
Anuradha
From India, Kochi
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I'm working in one such organization in a different post but would like to help.
Anuradha
From India, Kochi
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Hi Suresh,
How can we calculate the amount of gratuity? Secondly, as per my knowledge, it's applicable to those who have working experience of 5 years in the same organization. But does the calculation differ if the experience is more than 7 years and above?
Please guide.
From India, Sangrur
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6How can we calculate the amount of gratuity? Secondly, as per my knowledge, it's applicable to those who have working experience of 5 years in the same organization. But does the calculation differ if the experience is more than 7 years and above?
Please guide.
From India, Sangrur
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Thanks for the speedy reply suresh, can you elaborate what a non profit organization is? because our’s is an art school for foreign students, we do have fees for studies. Anu
From India, Kochi
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From India, Kochi
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Dear,
Thank you for your response regarding Suresh/Meenakshi. I would like to clarify a bit on this query, as nowhere in the Gratuity Act is it written that gratuity is not applicable for nonprofit or charitable organizations. Therefore, the Gratuity Act is applicable here, and it will be calculated based on the number of years of service.
Thank you,
J. S. Malik
From India, Delhi
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Thank you for your response regarding Suresh/Meenakshi. I would like to clarify a bit on this query, as nowhere in the Gratuity Act is it written that gratuity is not applicable for nonprofit or charitable organizations. Therefore, the Gratuity Act is applicable here, and it will be calculated based on the number of years of service.
Thank you,
J. S. Malik
From India, Delhi
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Hi Anu,
The Payment of Gratuity Act applies only to factories, mines, plantations, ports, railways, and to every shop and establishment in which 10 or more persons are employed in government/private companies. Is your Cochi office registered under the Kerala Shop and Establishment Act? If so, then gratuity is applicable. Generally, NGOs and NPOs run with a skeleton staff for social causes and don't book profits. Therefore, I don't think gratuity or bonus is applicable even if you complete five years. To be eligible, it has to fall under any of the above listings that involve high manpower, production, cash flow, and profit and loss account. If they are so conscious, they can equate a proportionate amount in lieu of gratuity.
Regards,
Chandru
Manager-HR
From India, Madras
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The Payment of Gratuity Act applies only to factories, mines, plantations, ports, railways, and to every shop and establishment in which 10 or more persons are employed in government/private companies. Is your Cochi office registered under the Kerala Shop and Establishment Act? If so, then gratuity is applicable. Generally, NGOs and NPOs run with a skeleton staff for social causes and don't book profits. Therefore, I don't think gratuity or bonus is applicable even if you complete five years. To be eligible, it has to fall under any of the above listings that involve high manpower, production, cash flow, and profit and loss account. If they are so conscious, they can equate a proportionate amount in lieu of gratuity.
Regards,
Chandru
Manager-HR
From India, Madras
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Hi,
I have been working in the service industry for the past nine years. I would like to know whether I am eligible for gratuity or not. In May 2005, I resigned and left the company but rejoined within a month in the same company. Now, I have resigned here on 10th Oct 2008. Please do reply.
My mail id is: [IMG]https://www.citehr.com/misc.php?do=email_dev&email=bWFpbHVzaGhAZ2 1haWwuY29t[/IMG].
Thanks in advance.
Usha
From India, Hyderabad
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I have been working in the service industry for the past nine years. I would like to know whether I am eligible for gratuity or not. In May 2005, I resigned and left the company but rejoined within a month in the same company. Now, I have resigned here on 10th Oct 2008. Please do reply.
My mail id is: [IMG]https://www.citehr.com/misc.php?do=email_dev&email=bWFpbHVzaGhAZ2 1haWwuY29t[/IMG].
Thanks in advance.
Usha
From India, Hyderabad
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(Fact Checked)-The length of service for gratuity eligibility is considered continuous if rejoining within a month of resignation. Please refer to the Payment of Gratuity Act, 1972 for more details. (1 Acknowledge point)
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Hi Meenakshi,
I hope your doubts about non-profit organizations have been clarified. Regarding the calculation, you may follow the formula below:
Last Drawn Wages X 15 X No. of years of Service = Gratuity
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If a person's experience is more than 4 years and 240 days, they are eligible for gratuity. While books may state 5 years of continuous service, legal judgments have concluded that less than 5 years is also eligible (4 years and 240 days).
Thank you.
From India, Mumbai
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I hope your doubts about non-profit organizations have been clarified. Regarding the calculation, you may follow the formula below:
Last Drawn Wages X 15 X No. of years of Service = Gratuity
26
If a person's experience is more than 4 years and 240 days, they are eligible for gratuity. While books may state 5 years of continuous service, legal judgments have concluded that less than 5 years is also eligible (4 years and 240 days).
Thank you.
From India, Mumbai
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Mr.Suresh, Your reply w.r.t Gratuity is perfect and the formula is right. Regards, Chandru
From India, Madras
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From India, Madras
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Dear Mr. Suresh,
Can you please provide me with a reference to any judgment stating that a person who has served 4 years and 240 days of continuous service will be eligible for payment of gratuity?
I would also like to know whether 240 days of continuous service includes holidays, days off, and leaves.
Please reply as I am eagerly waiting for your response.
Thanks,
Ritesh Ambade
M- 9823319007
From Korea
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Can you please provide me with a reference to any judgment stating that a person who has served 4 years and 240 days of continuous service will be eligible for payment of gratuity?
I would also like to know whether 240 days of continuous service includes holidays, days off, and leaves.
Please reply as I am eagerly waiting for your response.
Thanks,
Ritesh Ambade
M- 9823319007
From Korea
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(Fact Checked)-The requirement for gratuity eligibility includes completing 4 years and 240 days of continuous service, which does not include holidays, weekends, or leaves. Please refer to the Payment of Gratuity Act, 1972 for more details. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-The user's reply is [B]correct[/B]. The Payment of Gratuity Act, 1972 does not exempt non-profit or charitable organizations. Gratuity is applicable based on years of service. (1 Acknowledge point)