Dear Sir,
We are working in a JOINT Venture Company under a World Bank Funded Project. The Project is a Contract base.
In such Project, in which more than thousands of workers are working. Can we claim Gratuity?
Some of the employees are working for last five years and the Joint Venture made agreement / appointment conditions in which Gratuity Payment is not mentioned. Does the Gratuity Payment Act is applicable to this employees?
Thanking You.
With Regards
P.Hrishikesh Singh
HR Asst.
From India, New Delhi
We are working in a JOINT Venture Company under a World Bank Funded Project. The Project is a Contract base.
In such Project, in which more than thousands of workers are working. Can we claim Gratuity?
Some of the employees are working for last five years and the Joint Venture made agreement / appointment conditions in which Gratuity Payment is not mentioned. Does the Gratuity Payment Act is applicable to this employees?
Thanking You.
With Regards
P.Hrishikesh Singh
HR Asst.
From India, New Delhi
Is Gratuity payable to Joint Venture Employees or in Contract Project Packages
Dear Sir,
We are working in a JOINT Venture Company under a World Bank Funded Project. The Project is a Contract base.
In such Project, in which more than thousands of workers are working. Can we claim Gratuity?
Some of the employees are working for last five years and the Joint Venture made agreement / appointment conditions in which Gratuity Payment is mentioned. Does the Gratuity Payment Act is applicable to this employees?
Thanking You.
With Regards
P.Hrishikesh Singh
HR Asst.
Edit/Delete Message
From India, New Delhi
Dear Sir,
We are working in a JOINT Venture Company under a World Bank Funded Project. The Project is a Contract base.
In such Project, in which more than thousands of workers are working. Can we claim Gratuity?
Some of the employees are working for last five years and the Joint Venture made agreement / appointment conditions in which Gratuity Payment is mentioned. Does the Gratuity Payment Act is applicable to this employees?
Thanking You.
With Regards
P.Hrishikesh Singh
HR Asst.
Edit/Delete Message
From India, New Delhi
Dear Sir What is the nature of work done in the JV project and in the contract project packages.
From India, Madras
169From India, Madras
Dear Sir, The Project is of Road Construction aided by World Bank. The package is a three Year Package. Thanking Yours faithfully P. Hrishikesh Singh HR Asst.
From India, New Delhi
From India, New Delhi
Dear Mr.P.Hrishikesh Singh
In the case referred to by you, the employers are the partners in the joint venture. It makes no difference that the project is aided by the World Bank. The activiy carried on by the organisation is road construction. The question whether an organisation engaged in construction acitivity would be covered by the provisions of the Payment of Gratuity Act was decided by the Honourable Supreme Court in State Of Punjab vs Labour Court Jullundur and others[1981 (1) LLJ 354]. The Honourable Supreme Court held that the Payment of Gratuity Act applies to an establishment in which any work relating to the construction, development or maintenance of buildings, roads or canals or relating to oerations connected with navigation irrigation or the supply of water or relating to the generation transmission and distribution of electricity or any other form of power is being carried on. In view of this judgment the Payment of Gratuity Act is applicable to your organisation.
With regards
From India, Madras
In the case referred to by you, the employers are the partners in the joint venture. It makes no difference that the project is aided by the World Bank. The activiy carried on by the organisation is road construction. The question whether an organisation engaged in construction acitivity would be covered by the provisions of the Payment of Gratuity Act was decided by the Honourable Supreme Court in State Of Punjab vs Labour Court Jullundur and others[1981 (1) LLJ 354]. The Honourable Supreme Court held that the Payment of Gratuity Act applies to an establishment in which any work relating to the construction, development or maintenance of buildings, roads or canals or relating to oerations connected with navigation irrigation or the supply of water or relating to the generation transmission and distribution of electricity or any other form of power is being carried on. In view of this judgment the Payment of Gratuity Act is applicable to your organisation.
With regards
From India, Madras
Dear Sir,
Thanking you very much.
Hope further discussion will be on with you. Is Payment of Gratuity be compulsorily notified to the Govt. Authorities, if the Employer is paying the Gratuity as per rules?
Can Gratuity be paid directly by the Employer?
What is the payment procedure?
Your kind suggestions in this respect will be highly appreciated.
Thanking you Sir.
Yours faithfully
P. Hrishikesh Singh
HR Asst.
From India, New Delhi
Thanking you very much.
Hope further discussion will be on with you. Is Payment of Gratuity be compulsorily notified to the Govt. Authorities, if the Employer is paying the Gratuity as per rules?
Can Gratuity be paid directly by the Employer?
What is the payment procedure?
Your kind suggestions in this respect will be highly appreciated.
Thanking you Sir.
Yours faithfully
P. Hrishikesh Singh
HR Asst.
From India, New Delhi
Dear Mr.Hrishikesh Singh
If your organization has branches in more than one State, then the Appropriate Government for your organization is the Central Government. In case your organization has branches in only one State, then the Appropriate Government is the Government of the State in which your organization is situated. If in your case, the Appropriate Government is the Central Government, you have to follow the Rules framed by the Central Government under the Payment of Gratuity Act and if in your case the Appropriate Government is the State Government, then you have to follow the Rules framed by that State Government under the Payment of Gratuity Act.. This is applicable for Payment of Gratuity Act only.
Now regarding the questions raised by you.
The first question is “ Is Payment of Gratuity be compulsorily notified to the Govt. Authorities, if the Employer is paying the Gratuity as per rules?”
The answer is that if an employee makes a claim for gratuity the employer has to issue a reply to the employee in the prescribed form(s) prescribed under the Payment of Gratuity Rules. A copy of this notice has to be endorsed to the Controlling Authority notified under the Payment of Gratuity Act by the appropriate government. It is advisable to send this copy of the reply to the Controlling Authority by Registered Post with Acknowledgment Due.
The second question is “Can Gratuity be paid directly by the Employer?”
Yes. Gratuity can be paid directly by the employer to the employee or his legal heir or nominee. In case there is any dispute regarding the amount of gratuity payable, or as to the admissibility of any claim for gratuity, or about the person to whom it is payable the employer should deposit the amount of gratuity admitted by him to be payable as gratuity, with the Controlling Authority.
The third question is “What is the payment procedure?”
The amount of gratuity can be paid to the worker through a crossed cheque.
With regards
From India, Madras
If your organization has branches in more than one State, then the Appropriate Government for your organization is the Central Government. In case your organization has branches in only one State, then the Appropriate Government is the Government of the State in which your organization is situated. If in your case, the Appropriate Government is the Central Government, you have to follow the Rules framed by the Central Government under the Payment of Gratuity Act and if in your case the Appropriate Government is the State Government, then you have to follow the Rules framed by that State Government under the Payment of Gratuity Act.. This is applicable for Payment of Gratuity Act only.
Now regarding the questions raised by you.
The first question is “ Is Payment of Gratuity be compulsorily notified to the Govt. Authorities, if the Employer is paying the Gratuity as per rules?”
The answer is that if an employee makes a claim for gratuity the employer has to issue a reply to the employee in the prescribed form(s) prescribed under the Payment of Gratuity Rules. A copy of this notice has to be endorsed to the Controlling Authority notified under the Payment of Gratuity Act by the appropriate government. It is advisable to send this copy of the reply to the Controlling Authority by Registered Post with Acknowledgment Due.
The second question is “Can Gratuity be paid directly by the Employer?”
Yes. Gratuity can be paid directly by the employer to the employee or his legal heir or nominee. In case there is any dispute regarding the amount of gratuity payable, or as to the admissibility of any claim for gratuity, or about the person to whom it is payable the employer should deposit the amount of gratuity admitted by him to be payable as gratuity, with the Controlling Authority.
The third question is “What is the payment procedure?”
The amount of gratuity can be paid to the worker through a crossed cheque.
With regards
From India, Madras
Dear Sir,
Thank you very much.
That sir, we are paying the Gratuity as a part of full and Final Settlement. Yes, we are maintaining the Form -I the Notice of Gratuity Payment to the Claimant and we are keeping a received copy from the claimant. But we are not issuing cheque separately for Gratuity Payment. The Full and Final Settlement Bill amount in which Gratuity Head is also included is paid by cheque or in cash.
That sir, with such practices, will there be any problems in future keeping in view of the compliance of the Act?
Your kind advice on the above will be highly appreciated.
Thanking you.
Yours faithfully
P. Hrishikesh Singh
HR Asst.
From India, New Delhi
Thank you very much.
That sir, we are paying the Gratuity as a part of full and Final Settlement. Yes, we are maintaining the Form -I the Notice of Gratuity Payment to the Claimant and we are keeping a received copy from the claimant. But we are not issuing cheque separately for Gratuity Payment. The Full and Final Settlement Bill amount in which Gratuity Head is also included is paid by cheque or in cash.
That sir, with such practices, will there be any problems in future keeping in view of the compliance of the Act?
Your kind advice on the above will be highly appreciated.
Thanking you.
Yours faithfully
P. Hrishikesh Singh
HR Asst.
From India, New Delhi
Dear Mr.Hrishikesh Singh
There may not be any problem so long as you maintain the notice of payment of gratuity in the prescribed form and also get a receipt(may be a consolidated receipt)from the employee for the whole of the amount, but the consolidated receipt should give the details of the break up of the different components of the full and final payment. In other words the final receipt given by the worker should indicate the amount paid under the various heads and also have the signature in original of the worker.
With regards
From India, Madras
There may not be any problem so long as you maintain the notice of payment of gratuity in the prescribed form and also get a receipt(may be a consolidated receipt)from the employee for the whole of the amount, but the consolidated receipt should give the details of the break up of the different components of the full and final payment. In other words the final receipt given by the worker should indicate the amount paid under the various heads and also have the signature in original of the worker.
With regards
From India, Madras
Dear Sir,
Thank you very much.
The consolidated Receipt has all components of employees such as Salary, Leave en-cash, Bonus, Gratuity etc. The whole amount of Full and Final Settlement is being paid through an A/c Payee Cheque.
It is very clear from your kind advice that the payment of Gratuity can be made as a component of Full and Final Bill.
Your kind advice has make my HR operations doubtlessly a smart one.
Hope this type of discussions between us make our office operations more smooth and we can serve the employees in very transparent way in the future.
Thaking you once again.
Your faithfully
P. Hrishikesh Singh
HR. Asst.
From India, New Delhi
Thank you very much.
The consolidated Receipt has all components of employees such as Salary, Leave en-cash, Bonus, Gratuity etc. The whole amount of Full and Final Settlement is being paid through an A/c Payee Cheque.
It is very clear from your kind advice that the payment of Gratuity can be made as a component of Full and Final Bill.
Your kind advice has make my HR operations doubtlessly a smart one.
Hope this type of discussions between us make our office operations more smooth and we can serve the employees in very transparent way in the future.
Thaking you once again.
Your faithfully
P. Hrishikesh Singh
HR. Asst.
From India, New Delhi
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Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf
Gratuity Form I.doc