The labour court in the city stating recently that the gratuity amount is as good as a reward to an employee for his successful completion of service, therefore, it cannot be denied, ordered that the Brihanmumbai Electric Supply and Transport (BEST) pay up the gratuity with interest to a former employee.
The labour court in the city stating recently that the gratuity amount is as good as a reward to an employee for his successful completion of service, therefore, it cannot be denied, ordered that the Brihanmumbai Electric Supply and Transport (BEST) pay up the gratuity with interest to a former employee.
The application had been filed by a former BEST bus inspector before the Controlling Authority under the Payment of Gratuity Act. The applicant had joined the undertaking in 1990 and retired in August last year but was yet to be paid his gratuity of over Rs 9 lakh.
As per his complaint, the BEST was avoiding the payment even after he had sent them a notice.
In their response before the authority, the BEST stated that they did not have the jurisdiction to decide the matter as the undertaking has a private scheme for gratuity for its employees. It also stated that it is functioning under financial losses and has obtained loans for its daily functioning. While not refusing to pay up, it stated that it could make part-payment immediately and pay the rest of the amount when funds are available.
Judge Vyas stated in his order, "In present case applicant has been retired in August 2018 but till date has not received the gratuity. The Act has prescribed interest at the rate of 10% per annum if the gratuity has not paid [sic] within a specific period. Therefore entitlement of applicant for the said rate of interest cannot be denied."
Vyas added, "The opponent is directed to pay the applicant an amount of Rs 9,83,858 towards gratuity along with interest at the rate of 10 % per annum from 02/08/2018 (date of retirement) till its realisation."
https://www.dnaindia.com/mumbai/repo...-court-2781602
all credit to Dna for this news item
From India, Pune
3131The labour court in the city stating recently that the gratuity amount is as good as a reward to an employee for his successful completion of service, therefore, it cannot be denied, ordered that the Brihanmumbai Electric Supply and Transport (BEST) pay up the gratuity with interest to a former employee.
The application had been filed by a former BEST bus inspector before the Controlling Authority under the Payment of Gratuity Act. The applicant had joined the undertaking in 1990 and retired in August last year but was yet to be paid his gratuity of over Rs 9 lakh.
As per his complaint, the BEST was avoiding the payment even after he had sent them a notice.
In their response before the authority, the BEST stated that they did not have the jurisdiction to decide the matter as the undertaking has a private scheme for gratuity for its employees. It also stated that it is functioning under financial losses and has obtained loans for its daily functioning. While not refusing to pay up, it stated that it could make part-payment immediately and pay the rest of the amount when funds are available.
Judge Vyas stated in his order, "In present case applicant has been retired in August 2018 but till date has not received the gratuity. The Act has prescribed interest at the rate of 10% per annum if the gratuity has not paid [sic] within a specific period. Therefore entitlement of applicant for the said rate of interest cannot be denied."
Vyas added, "The opponent is directed to pay the applicant an amount of Rs 9,83,858 towards gratuity along with interest at the rate of 10 % per annum from 02/08/2018 (date of retirement) till its realisation."
https://www.dnaindia.com/mumbai/repo...-court-2781602
all credit to Dna for this news item
From India, Pune
Gratuity is a reward for employee loyalty. If an employee stays on in a company for over five years, he is entitled to get gratuity when he retires, resigns or is retrenched. The monetary reward to be paid by the company in recognition of the employee's years of service in the organisation is mandated by the Payment of Gratuity Act, 1972.
Most establishments employing 10 or more workers come under the Act. Roughly, the employee gets half a month’s Basic and Dearness Allowance (DA) for every completed year of service as gratuity.
Are you eligible for gratuity?
If an employee serves more than six months in the last year of employment, it is considered as a full year of service. There are exceptions and legal rulings that relax the five-year continuous service rule. The rule is waived if an employee dies or is disabled. Also, the Madras High Court in the Mettur Beardsell case ruled that if an employee completes four years and 240 days in service, he will be eligible for gratuity.
From India
Most establishments employing 10 or more workers come under the Act. Roughly, the employee gets half a month’s Basic and Dearness Allowance (DA) for every completed year of service as gratuity.
Are you eligible for gratuity?
If an employee serves more than six months in the last year of employment, it is considered as a full year of service. There are exceptions and legal rulings that relax the five-year continuous service rule. The rule is waived if an employee dies or is disabled. Also, the Madras High Court in the Mettur Beardsell case ruled that if an employee completes four years and 240 days in service, he will be eligible for gratuity.
From India
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc