Dear All,
A central government autonomous body is registered under the society under the society registration Act, 1860. The employees of the institute are covered under the EPFO. The Institute pays gratuity to the employees who retires from the institute but is holding the gratuity payment to the employees who are appointed on five years contact period and have resigned after serving more than five years to join other government institute. Is the action legally sustainable or does the institute has to necessary pay gratuity to all of its employees. Does the institute has to compulsorily follow the Gratuity Act 1972 or can still continue to follow the CCS ( pension) rule which does not provide for gratuity payment to employees appointed on or after 1/1/14 and is replaced by NPS. It may be noted that the institute still is continuing with the EPFO scheme and has not switched to the NPS.
regards
Hridan
From India, Delhi
A central government autonomous body is registered under the society under the society registration Act, 1860. The employees of the institute are covered under the EPFO. The Institute pays gratuity to the employees who retires from the institute but is holding the gratuity payment to the employees who are appointed on five years contact period and have resigned after serving more than five years to join other government institute. Is the action legally sustainable or does the institute has to necessary pay gratuity to all of its employees. Does the institute has to compulsorily follow the Gratuity Act 1972 or can still continue to follow the CCS ( pension) rule which does not provide for gratuity payment to employees appointed on or after 1/1/14 and is replaced by NPS. It may be noted that the institute still is continuing with the EPFO scheme and has not switched to the NPS.
regards
Hridan
From India, Delhi
Societies registered under the Societies Registration Act,1860 were already brought under the purview of the Payment of Gratuity Act,1972 by means of notification issued u/s 1(3)(c) of the Act w.e.f 22-08-1997. The existence of any scheme under any Law for Provident Fund AND Pension can not take away the benefit of gratuity under the PG Act,1972. Irrespective of the nature of employment, whether regular or contract basis, if the employee renders a continuous service of not less than five years in an establishment covered by the provisions of the PG Act,1972 on the date of termination of his employment, he should be paid gratuity.
From India, Salem
6018From India, Salem
Dear Sir
Thanks for your reply. I would further like to know whether it would be appropriate for me to file complaint before the labour commissioner for non payment of gratuity or should I need to approach the CAT. As the employer in my case is a central autonomous institute and the gratuity payment has been hold on for the last 30 months for want of clarification from the parent ministry, can the labour commissioner adjudicate in such cases. Please advice.
regards
Deepak B
From India, Delhi
Thanks for your reply. I would further like to know whether it would be appropriate for me to file complaint before the labour commissioner for non payment of gratuity or should I need to approach the CAT. As the employer in my case is a central autonomous institute and the gratuity payment has been hold on for the last 30 months for want of clarification from the parent ministry, can the labour commissioner adjudicate in such cases. Please advice.
regards
Deepak B
From India, Delhi
Since your employer is a Central Institute, the appropriate Government is the Central Govt. Engage a counsel and file a claim before the area Controlling Authority under the PG Act,1972 with a special prayer for interest till the actual payment of the amount.
From India, Salem
From India, Salem
Dear Sir,
Thanks for your response. As per my discussion with other friends, the ALC ( Central) cannot adjudicate on matters pertaining to payment of gratuity in cases of employees of central autonomous bodies who are bound by seperate service rules i.e CCS rules. Please clarify.
regards
Hridan
From India, Delhi
Thanks for your response. As per my discussion with other friends, the ALC ( Central) cannot adjudicate on matters pertaining to payment of gratuity in cases of employees of central autonomous bodies who are bound by seperate service rules i.e CCS rules. Please clarify.
regards
Hridan
From India, Delhi
Dear Sir,
Can you please reply to my query dated 11/8/16. Does the employees of autonomous bodies who are covered by CCS rules, file compliant before the labour office for non payment of gratuity ? Further, who can an employee prove that an autonomous body is necessary covered under the POG Act.
regards
Hridan
From India, Delhi
Can you please reply to my query dated 11/8/16. Does the employees of autonomous bodies who are covered by CCS rules, file compliant before the labour office for non payment of gratuity ? Further, who can an employee prove that an autonomous body is necessary covered under the POG Act.
regards
Hridan
From India, Delhi
Dear Hridan,
Your query involves a situation abundantly ripe with questions of law and facts and therefore whatever answers given by others would only be of subjective interpretations. With this assumption, I offer my reply to your query as follows:
(1)For the sake of clear understanding, you could've mentioned the name of the Autonomous body, its functions, the circumstances under which its constitution was changed, the structure of its staffing i.e., the existence of independent recruitment by the body and the scheme of deputation from Central Govt and the like.
(2)By virtue of the notification cited supra, it is an establishmennt covered by the application of the P.G Act,1972.
(3) If its staff comprises of deputationists from Govt. Departments for whom the C.C.S(Pesion) Rules are applicable, they are excluded from the definition of the term "employee".
(4) Even other employees would also stand excluded if the CCS(P) Rules or any other Rules providing for gratuity is applicable to them.
(5) When the CCS(P)Rules are not specifically applicable to persons entitled to any CPF, the contract employees for whom EPF subscriptions are contributed by the establishment automatically come out of the coverage of the CCS(P) Rules and only the gratuity as per the PG Act,1972 comes into operation.
(6) It is also noteworthy that the CCS(P)Rules stipulates a condition for entitlement of gratuity for contract employees under it, only if it is so provided for in the contract. Perhaps on this point, the establishment awaits clarification from the concerned Ministry, I think.
(7) If the delay is inordinate, you can move the High Court of the State under its writ jurisdiction and pray for payment of gratuity together with interest.
From India, Salem
Your query involves a situation abundantly ripe with questions of law and facts and therefore whatever answers given by others would only be of subjective interpretations. With this assumption, I offer my reply to your query as follows:
(1)For the sake of clear understanding, you could've mentioned the name of the Autonomous body, its functions, the circumstances under which its constitution was changed, the structure of its staffing i.e., the existence of independent recruitment by the body and the scheme of deputation from Central Govt and the like.
(2)By virtue of the notification cited supra, it is an establishmennt covered by the application of the P.G Act,1972.
(3) If its staff comprises of deputationists from Govt. Departments for whom the C.C.S(Pesion) Rules are applicable, they are excluded from the definition of the term "employee".
(4) Even other employees would also stand excluded if the CCS(P) Rules or any other Rules providing for gratuity is applicable to them.
(5) When the CCS(P)Rules are not specifically applicable to persons entitled to any CPF, the contract employees for whom EPF subscriptions are contributed by the establishment automatically come out of the coverage of the CCS(P) Rules and only the gratuity as per the PG Act,1972 comes into operation.
(6) It is also noteworthy that the CCS(P)Rules stipulates a condition for entitlement of gratuity for contract employees under it, only if it is so provided for in the contract. Perhaps on this point, the establishment awaits clarification from the concerned Ministry, I think.
(7) If the delay is inordinate, you can move the High Court of the State under its writ jurisdiction and pray for payment of gratuity together with interest.
From India, Salem
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Online payment of PF mandatory from 1.1.2016.pdf