Dear Seniors,
Good morning to all..
Today my querry is regarding payment of gratuity. One employee in our organisation was firstly appointed through third party contract for 3 years. Then the contract completed and he was appointed on our company's fixed term contract for 2.5 years. Then the employee has resigned fron his job and also expired due to illness after resigning...
Now his wife is claiming gratuity for the period he served in our company..
Is company responsible for the gratuity?
Five years period is counted as--Third party contract & company 's fixed term contract.
Pl guide on above....
With warm regards,
Sdd.
From India, Thana
3Good morning to all..
Today my querry is regarding payment of gratuity. One employee in our organisation was firstly appointed through third party contract for 3 years. Then the contract completed and he was appointed on our company's fixed term contract for 2.5 years. Then the employee has resigned fron his job and also expired due to illness after resigning...
Now his wife is claiming gratuity for the period he served in our company..
Is company responsible for the gratuity?
Five years period is counted as--Third party contract & company 's fixed term contract.
Pl guide on above....
With warm regards,
Sdd.
From India, Thana
Dear Sdd,
Gratuity act says "the completion of continuous service of five years shall not be necessary where the termination of the employement of an employee is due to death or disablement ".Hence you would have to pay gratuity to the employee even if he had not completed five years of service at the stretch while in your payroll .But since you have mentioned that the employee had passed away after his resignation so I think you are not liable to pay gratuity.
Regards
Aparajita
From Canada, Yellowknife
Gratuity act says "the completion of continuous service of five years shall not be necessary where the termination of the employement of an employee is due to death or disablement ".Hence you would have to pay gratuity to the employee even if he had not completed five years of service at the stretch while in your payroll .But since you have mentioned that the employee had passed away after his resignation so I think you are not liable to pay gratuity.
Regards
Aparajita
From Canada, Yellowknife
Thank you Aparajita....
But my question is....That employee was appointed through third party contract for 2.5 yrs. and then 2 yrs through company's fixed term contract for 2.3 yrs.
Is this period is to be combined and considered as his continuous service?
Again the employee was working in a worker catagory i.e. in production dept.
Waiting for reply....
Sdd.
From India, Thana
But my question is....That employee was appointed through third party contract for 2.5 yrs. and then 2 yrs through company's fixed term contract for 2.3 yrs.
Is this period is to be combined and considered as his continuous service?
Again the employee was working in a worker catagory i.e. in production dept.
Waiting for reply....
Sdd.
From India, Thana
dear sdd
So far as your co is concerned you need to consider the time period while the employee was in your payroll ie 2.3 yrs.The period of 2.5 yrs when the employee was under third party contract should not be taken into account.
Regards
Aparajita
From Canada, Yellowknife
So far as your co is concerned you need to consider the time period while the employee was in your payroll ie 2.3 yrs.The period of 2.5 yrs when the employee was under third party contract should not be taken into account.
Regards
Aparajita
From Canada, Yellowknife
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc