My father was a doctor in charitable trust hospital, after retirement trustee did not pay a gratuity or PF stating we did not deduct any PF from salary. We need advice on this matter from the labor ministry.
From India, Ahmedabad
From India, Ahmedabad
Hi Priyam,
You'll get to see necessary clarifications in this link-
https://www.citehr.com/461953-charit...on-labour.html;
https://indiankanoon.org/doc/1267183/
https://boardhr.blogspot.com/2019/10...ble-trust.html
However, we need to look at the provisions relevant to these as per the newly passed bills - Labour Codes already circulated in the official Gazette of the GoI which since received the approval of the President of India. Implementation notification awaited any time now.
From India, Bangalore
1073You'll get to see necessary clarifications in this link-
https://www.citehr.com/461953-charit...on-labour.html;
https://indiankanoon.org/doc/1267183/
https://boardhr.blogspot.com/2019/10...ble-trust.html
However, we need to look at the provisions relevant to these as per the newly passed bills - Labour Codes already circulated in the official Gazette of the GoI which since received the approval of the President of India. Implementation notification awaited any time now.
From India, Bangalore
Also sir,my father was a class 1 medical officer in that charitable trust hospital,but they paid 30000 as last Basic salary and other they stated it as incentive,and with that last drawn salary became 1,40k so will we get the graduity according 30k Basic salary¿
From India, Ahmedabad
From India, Ahmedabad
Dear Anamik Friend,
As regards to PF:
Your father seems to be an exempted employee under the meaning of EPF Act. His salary was above the threshold and therefore, it was not mandatory to deduct any PF from the salary of your father and according no PF was deducted and hence your father is not entitled to any PF benefit.
As regards to Gratuity:
Gratuity Act 1972 is not applicable to public and charitable trust and therefore your father is not entitled to any Gratuity payment.
Hope you are now clear on the subject without without any link to the matter.
From India, Mumbai
As regards to PF:
Your father seems to be an exempted employee under the meaning of EPF Act. His salary was above the threshold and therefore, it was not mandatory to deduct any PF from the salary of your father and according no PF was deducted and hence your father is not entitled to any PF benefit.
As regards to Gratuity:
Gratuity Act 1972 is not applicable to public and charitable trust and therefore your father is not entitled to any Gratuity payment.
Hope you are now clear on the subject without without any link to the matter.
From India, Mumbai
I don't know how can you exempt a charitable institution from the purview of any labour Law. As Mr Kumar has pointed out the matter was discussed in length earlier and you may please go to the link provided
https://www.citehr.com/461953-charit...on-labour.html
If the charitable institutions were to be excluded from PF, Gratuity etc you cannot ind any institution meant for profit, everyone will be running his establishment for charity. can you say that a hospital is run without collecting fees? What is the basis of paying a doctor "incentive"? If the hospital was running it for charity, they should have paid the doctor a fee without fixing a monthly salary or incentive. The incentive part is very serious one. Incentive is a variable amount that you get based on production or service or under certain parameter. A charitable hospital cannot offer it because by offering an incentive, the management is motivating the employee to do more and more work or put more and more labour. This shows that there existed master servant relationship and as such the laws relating to servants should be applicable to the latter.
It is okay that since the Salary exceeded Rs 15000, he was excluded from PF. But he cannot be denied gratuity, if he has served for five years. The gratuity will be based on the salary part without considering the variables, the incentive.
From India, Kannur
https://www.citehr.com/461953-charit...on-labour.html
If the charitable institutions were to be excluded from PF, Gratuity etc you cannot ind any institution meant for profit, everyone will be running his establishment for charity. can you say that a hospital is run without collecting fees? What is the basis of paying a doctor "incentive"? If the hospital was running it for charity, they should have paid the doctor a fee without fixing a monthly salary or incentive. The incentive part is very serious one. Incentive is a variable amount that you get based on production or service or under certain parameter. A charitable hospital cannot offer it because by offering an incentive, the management is motivating the employee to do more and more work or put more and more labour. This shows that there existed master servant relationship and as such the laws relating to servants should be applicable to the latter.
It is okay that since the Salary exceeded Rs 15000, he was excluded from PF. But he cannot be denied gratuity, if he has served for five years. The gratuity will be based on the salary part without considering the variables, the incentive.
From India, Kannur
Dear Queriest,
A doubt arises about the remuneration paid to Doctors who are doing their job of consultancy, procedural, surgical, review of progress, emergencies advises/adminstrative etc. They are paid on various methods-wages/salary, fees, retainership, consultancy, per diem, per case, per visit and so on. Some are paid even honorarium or incentive etc and other various names and even hourly basis also. But the fact remains such professionals not only in medical profession but also in other fields are paid some 'remuneration' not necessarily known or called as 'wages or salary'. The periodicity also would vary. It could be skilled, semi-skilled or such that. So long as it's paid in exchange of services rendered other aspects has no deciding factors. No matter the organisation is charitable or otherwise. The gratuity is not a gift out of love or affection, but a benefit earned for the period while in service. Therefore so long as the criteria of 5 yrs continuous service is satisfied the liability to pay gratuity accrues & due.
In this context there are no.of court cases also available on the web. One such reference - judgment passed by the Gujarat HC is attached which can throw more light on the subject.
From India, Bangalore
A doubt arises about the remuneration paid to Doctors who are doing their job of consultancy, procedural, surgical, review of progress, emergencies advises/adminstrative etc. They are paid on various methods-wages/salary, fees, retainership, consultancy, per diem, per case, per visit and so on. Some are paid even honorarium or incentive etc and other various names and even hourly basis also. But the fact remains such professionals not only in medical profession but also in other fields are paid some 'remuneration' not necessarily known or called as 'wages or salary'. The periodicity also would vary. It could be skilled, semi-skilled or such that. So long as it's paid in exchange of services rendered other aspects has no deciding factors. No matter the organisation is charitable or otherwise. The gratuity is not a gift out of love or affection, but a benefit earned for the period while in service. Therefore so long as the criteria of 5 yrs continuous service is satisfied the liability to pay gratuity accrues & due.
In this context there are no.of court cases also available on the web. One such reference - judgment passed by the Gujarat HC is attached which can throw more light on the subject.
From India, Bangalore
Yes, if his incentive is part of service contract, then it should be included in the wages/salary for deciding the mount of gratuity.
There are a lot of systems of remuneration payment. By whatever name called, if the same is a remuneration for the work done, it shall come under the heading wages. Please refr to the an Income Tax case (attached) wherein the hospital was deducting the TDS from the doctors as if they are paid consultancy/ professional charges. But the doctors were governed by the service conditions of the hospital which included, fixed working time, reporting at a certain time and leaving the hospital on a certain time, prohibition of practicing or consultation outside the hospital or private practicing etc. The IT observed that if these doctors were consultants they should not be following the general HR policies of the hospital and there should not be restrictive clauses with regard to engagement of other business of profits.
In this case the incentives shall also form part of remuneration which qualifies Gratuity provided the incentive is based on the number of cases attended. It will have all the characteristics of a piece rate wage.
From India, Kannur
There are a lot of systems of remuneration payment. By whatever name called, if the same is a remuneration for the work done, it shall come under the heading wages. Please refr to the an Income Tax case (attached) wherein the hospital was deducting the TDS from the doctors as if they are paid consultancy/ professional charges. But the doctors were governed by the service conditions of the hospital which included, fixed working time, reporting at a certain time and leaving the hospital on a certain time, prohibition of practicing or consultation outside the hospital or private practicing etc. The IT observed that if these doctors were consultants they should not be following the general HR policies of the hospital and there should not be restrictive clauses with regard to engagement of other business of profits.
In this case the incentives shall also form part of remuneration which qualifies Gratuity provided the incentive is based on the number of cases attended. It will have all the characteristics of a piece rate wage.
From India, Kannur
Respected Madhu ji and other members,
I am extremely sorry for quoting Gratuity Act 1972 is not applicable to public and charitable trust and thank you for correcting me timely.
I don't know what made me to respond to this query in the morning hours when my schedule is quite busy. I was taking glance on various posts and found this post with various links in reply and thought of responding hurriedly.
Dear Anamik Friend,
I correct myself. Your father is entitled to Gratuity if he has completed 5 years of service.
From India, Mumbai
I am extremely sorry for quoting Gratuity Act 1972 is not applicable to public and charitable trust and thank you for correcting me timely.
I don't know what made me to respond to this query in the morning hours when my schedule is quite busy. I was taking glance on various posts and found this post with various links in reply and thought of responding hurriedly.
Dear Anamik Friend,
I correct myself. Your father is entitled to Gratuity if he has completed 5 years of service.
From India, Mumbai
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