Dear Shri Sudhir Ji,
I do not exactly remember the date of amendment in the PF Act but is certainly made before the year 2001 making it compulsory for the employers to admit the employees to PF from day one in service.
Your actual length of service is 24 days 11 months 4 years from the data
you have provided. Will you please tell me why it was not possible for you
to continue in the service for one more week? It would have made it possible for you to claim gratuity without any dispute and also made your
company contribution tax free. If the length of service is more than 5 years, the company contribution to one's PF is tax free.
Thanks and regards,
From India, Pune
22I do not exactly remember the date of amendment in the PF Act but is certainly made before the year 2001 making it compulsory for the employers to admit the employees to PF from day one in service.
Your actual length of service is 24 days 11 months 4 years from the data
you have provided. Will you please tell me why it was not possible for you
to continue in the service for one more week? It would have made it possible for you to claim gratuity without any dispute and also made your
company contribution tax free. If the length of service is more than 5 years, the company contribution to one's PF is tax free.
Thanks and regards,
From India, Pune
Dear Experts,
In our organization gratuity is paid after completion of every year instead of 5 years, the employer wants to know if this can be broken down and added as monthly salary
Eg: IF the salary of an individual is Rs 20,000 per month, he wants to know if we can make it as Rs 18,000 per month + say2000 as Service compnesation to make it the Rs 2000 amount as tax exempt?
Please advice
Thanks,
Amit
From India, Hyderabad
In our organization gratuity is paid after completion of every year instead of 5 years, the employer wants to know if this can be broken down and added as monthly salary
Eg: IF the salary of an individual is Rs 20,000 per month, he wants to know if we can make it as Rs 18,000 per month + say2000 as Service compnesation to make it the Rs 2000 amount as tax exempt?
Please advice
Thanks,
Amit
From India, Hyderabad
Dear Amit Ji,
Gratuity is payable at the end of service, while parting and not every year. The final gratuity is payable @ last
pay. The formula is 15*No.of years of service*Last pay(basic + dearness allowance)/26 subject to maximum 10 lakhs. If any employer wants to pay more than 10 lakh as gratuity, the law does not forbid him from doing so provided the employer recovers income tax on gratuity over and above Rs.10 lakh and remits it to the government.
If your employer has found out some tricks to reduce gratuity and other terminal benefits by paying it every year, the law is helpless. You may take this question to appropriate fora like Central/State labour commissioner etc. who are the competent authority for disputes on payment of gratuity. Before approaching these authorities, please try to resolve the matter at company level itself. Please tell the employer that even if he pays gratuity every year, that will be a bonus to the employees and at the end of one's service, the gratuity is payable under the Payment of Gratuity Act, 1972. It is binding on the employer depending upon the number of employees in the firm. If an employee part with the employer before completion of five year service, no gratuity is payable. However, in the case of termination of service on account death of the employee or permanent disablement, this condition of five year service is not applicable.
From India, Pune
Gratuity is payable at the end of service, while parting and not every year. The final gratuity is payable @ last
pay. The formula is 15*No.of years of service*Last pay(basic + dearness allowance)/26 subject to maximum 10 lakhs. If any employer wants to pay more than 10 lakh as gratuity, the law does not forbid him from doing so provided the employer recovers income tax on gratuity over and above Rs.10 lakh and remits it to the government.
If your employer has found out some tricks to reduce gratuity and other terminal benefits by paying it every year, the law is helpless. You may take this question to appropriate fora like Central/State labour commissioner etc. who are the competent authority for disputes on payment of gratuity. Before approaching these authorities, please try to resolve the matter at company level itself. Please tell the employer that even if he pays gratuity every year, that will be a bonus to the employees and at the end of one's service, the gratuity is payable under the Payment of Gratuity Act, 1972. It is binding on the employer depending upon the number of employees in the firm. If an employee part with the employer before completion of five year service, no gratuity is payable. However, in the case of termination of service on account death of the employee or permanent disablement, this condition of five year service is not applicable.
From India, Pune
Hi All.
Need help.
I have worked with a Staffing Firm for 4 years and 11 months. Upon resignation my Manager asked me serving notice period will not be required and they agreed to accept my resignation immediately. Now they have denied me Gratuity. Is there any law through which i can claim my due?
Any information will be greatly appreciated.
Regards,
Sameer Quadri
From India, Hyderabad
Need help.
I have worked with a Staffing Firm for 4 years and 11 months. Upon resignation my Manager asked me serving notice period will not be required and they agreed to accept my resignation immediately. Now they have denied me Gratuity. Is there any law through which i can claim my due?
Any information will be greatly appreciated.
Regards,
Sameer Quadri
From India, Hyderabad
I joined an organisation on 14 th Aug,2008 and Resigned on 19th Aug,2013.How much gratuity will be paid? kindly Sggest.
From India, Hyderabad
From India, Hyderabad
Dear Worthy Members,
I have attached herewith the Judgment of Madras High Court known as Mettur Beardsell Ltd. Case, wherein Honb'le Justice Abdul Wahab clearly stated that a person who had been in service of an organization for 240 days or more in fifth year are eligible for Gratuity. Hence when an employee completes 4 years and 240 days in fifth year, he is legally said to have completed 5 years for the perpose of eligibility of gratuity.
Even here in Delhi you can claim Gratuity by applying the same principle given under the Madras High Judgement on the subject. Even If a company is managing its trust it cannot make its own rules to govern the trust. It can give more but not less than what prescribed under the Act.
Dear Sameer,
I advice you to serve a notice to the employer in Form "I" demanding amount of Gratuity. In case no reply is received or your claim is rejected, approach the Controlling Authority under PG Act. Assistant Commissioner of Labour is the proper authority. File your claim in form "N" together with documents such as Appointment letter, salary slip, notice etc. I am sure you will have your claim. You are certainly eligible for Gratuity and so as Sudhir.
Also please see first that the Payment of Gratuity Act "Must" be applicable on your organization. which is applicable on every factory, mine, oilfield, plantation, port and railway company; on the every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Feel free to revert in case of any doubt.
From India, New Delhi
I have attached herewith the Judgment of Madras High Court known as Mettur Beardsell Ltd. Case, wherein Honb'le Justice Abdul Wahab clearly stated that a person who had been in service of an organization for 240 days or more in fifth year are eligible for Gratuity. Hence when an employee completes 4 years and 240 days in fifth year, he is legally said to have completed 5 years for the perpose of eligibility of gratuity.
Even here in Delhi you can claim Gratuity by applying the same principle given under the Madras High Judgement on the subject. Even If a company is managing its trust it cannot make its own rules to govern the trust. It can give more but not less than what prescribed under the Act.
Dear Sameer,
I advice you to serve a notice to the employer in Form "I" demanding amount of Gratuity. In case no reply is received or your claim is rejected, approach the Controlling Authority under PG Act. Assistant Commissioner of Labour is the proper authority. File your claim in form "N" together with documents such as Appointment letter, salary slip, notice etc. I am sure you will have your claim. You are certainly eligible for Gratuity and so as Sudhir.
Also please see first that the Payment of Gratuity Act "Must" be applicable on your organization. which is applicable on every factory, mine, oilfield, plantation, port and railway company; on the every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
Feel free to revert in case of any doubt.
From India, New Delhi
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