An average of 30 loss of pay will not make any difference. Moreover, since you have been on regular rolls and not on casual or daily wages, you will be eligible to gratuity. Madhu.T.K
From India, Kannur
4239From India, Kannur
Dear Mpratish,
What treatment the LOP days should be given depends on HR/Leave policy of a firm. It's also depends on, in many firms, on the goodwill, a go-getter, enjoyed by the employees concerned and ultimately the deciding factor is HODs' recommendation on such availment from case to case basis. I personally feel "uninformed leave" does not warrant a kind treatment from the point of view of the employer and deserves to be treated as absent (except on valid reasons like sudden illness, accident etc.) which in turn could be amounted to 'break-in-service". So I request all our employee friends never, ever venture for "uninformed LOP" as there is always a danger of losing benefits accruing to all of your past services. This is so 'leave itself cannot be taken as an automatic right to avail' ofcourse except on emergencies. It goes without saying 'an unwanted person' cannot complain of discrimination if 'a break-in-service' is meted out in case of LOP, of course sometimes no.of days also matters. In these situations it's good for them to sort them out immediately on rejoining duty after the LOP and see it did not result in break-in-service otherwise one has to repent leisurely when they are leaving and face the shock of problem in F & F settlements.
From India, Bangalore
What treatment the LOP days should be given depends on HR/Leave policy of a firm. It's also depends on, in many firms, on the goodwill, a go-getter, enjoyed by the employees concerned and ultimately the deciding factor is HODs' recommendation on such availment from case to case basis. I personally feel "uninformed leave" does not warrant a kind treatment from the point of view of the employer and deserves to be treated as absent (except on valid reasons like sudden illness, accident etc.) which in turn could be amounted to 'break-in-service". So I request all our employee friends never, ever venture for "uninformed LOP" as there is always a danger of losing benefits accruing to all of your past services. This is so 'leave itself cannot be taken as an automatic right to avail' ofcourse except on emergencies. It goes without saying 'an unwanted person' cannot complain of discrimination if 'a break-in-service' is meted out in case of LOP, of course sometimes no.of days also matters. In these situations it's good for them to sort them out immediately on rejoining duty after the LOP and see it did not result in break-in-service otherwise one has to repent leisurely when they are leaving and face the shock of problem in F & F settlements.
From India, Bangalore
As per the Act gratuity is calculated at the rate of 15 days pay for every completed year of service. But there is nothing illegal in paying gratuity at higher rate. Normally, if there is a settlement with the workers that gratuity will be paid at higher rate (say, at the rate of 30 days pay for every year of service to those who completes 20 years) then the employer is bound to pay it at such rates. There are many companies which pay gratuity at higher rates. But there should be specific policy and the policy should describe the length of service and the rate at which the gratuity shall be paid. You should also ensure that you will be able to continue with the policy and will be able to make it applicable to everybody who qualifies.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
I know gratuity will calculate as follows i.e. basic + da *15/26days * no of years worked
My question is my last working day was 4-8-2014. Now my basic and da for 4 days is (240+86) is my gratuity will be 940 INR or else it will calculate on last withdrawn salary i.e. 31-7-2014 then my basic and da on last withdrawn salary is (6250+2250), in that case my gratuity will be 24519.
Kindly clarify my doubt.
From India, Bangalore
My question is my last working day was 4-8-2014. Now my basic and da for 4 days is (240+86) is my gratuity will be 940 INR or else it will calculate on last withdrawn salary i.e. 31-7-2014 then my basic and da on last withdrawn salary is (6250+2250), in that case my gratuity will be 24519.
Kindly clarify my doubt.
From India, Bangalore
last drawn salary means monthly average and not actually received. If your monthly salary was Rs 8500(6250+2250) then it will be taken into account and not the days worked last month Madhu.T.K
From India, Kannur
From India, Kannur
Hi Madhu
I seek your advise on the matter below-
My employment with a US MNC was a fixed term contract for 3 years on renewable basis. They parked the sum for my gratuity and showed it to me part of CTC. It was never a part of payout.
On attainment of my third, year the organization did not renew my contract and let me go. My question is:
Since my agreement did not get renewed and the gratuity was deducted, can I claim it from my ex-employer.
Thanks and regards
From India, New Delhi
I seek your advise on the matter below-
My employment with a US MNC was a fixed term contract for 3 years on renewable basis. They parked the sum for my gratuity and showed it to me part of CTC. It was never a part of payout.
On attainment of my third, year the organization did not renew my contract and let me go. My question is:
Since my agreement did not get renewed and the gratuity was deducted, can I claim it from my ex-employer.
Thanks and regards
From India, New Delhi
I don't think that they would have deducted it from your salary but rather they would have shown it as part of CTC. If it is shown as a deduction from your monthly salary, then you can claim it, otherwise not.
Another important thing that the HR should note while drafting the appointment orders and salary structure of an FTC employee is that if the contract is for period not exceeding five years, never show the gratuity as part of CTC because in such contracts it is certain that the employee employer relationship will come to an end before five years and in no way payment of gratuity would arise. And if you still show it as part of CTC, it can be questioned and if the employee files a case, there is every chance that the employee will win it on the ground that the employer has given wrong message about the package.
This has what happened to Maverick also. If you share your complete details we may be able to advise you further on it.
Madhu.T.K
From India, Kannur
Another important thing that the HR should note while drafting the appointment orders and salary structure of an FTC employee is that if the contract is for period not exceeding five years, never show the gratuity as part of CTC because in such contracts it is certain that the employee employer relationship will come to an end before five years and in no way payment of gratuity would arise. And if you still show it as part of CTC, it can be questioned and if the employee files a case, there is every chance that the employee will win it on the ground that the employer has given wrong message about the package.
This has what happened to Maverick also. If you share your complete details we may be able to advise you further on it.
Madhu.T.K
From India, Kannur
Hi Madhu
Thanks for your insight. I shared my payslip and you are correct they have not been deducting, but shown it as my CTC. My argument is, neither it was given to me as a monthly pay out, nor it was given to with my F&F, I as an employee is at sheer loss.
Will I be wise/judicious to pursue this with my employer and if necessary take to legal?
You advise will be a great help.
Thanks and regards
Maverick
From India, New Delhi
Thanks for your insight. I shared my payslip and you are correct they have not been deducting, but shown it as my CTC. My argument is, neither it was given to me as a monthly pay out, nor it was given to with my F&F, I as an employee is at sheer loss.
Will I be wise/judicious to pursue this with my employer and if necessary take to legal?
You advise will be a great help.
Thanks and regards
Maverick
From India, New Delhi
It will not work because it is payable on a condition and that you have not fulfilled that condition, ie, the condition that you will work for a minimum period of 5 years. Now another question may arise, that what will happen if the service is terminated? Again it is a question to be answered with reference to the terms of employment. It is true that showing the gratuity amount as cost to company is not a good practice since it lacks transparency. But the practice is to show it. By doing it we are inviting endless confusions. But the employer's defends will be that if you misinterpret the meaning of CTC as monthly salary, the employer is helpless and on accepting the offer itself you should have studied the offer well and clarified the points where you find ambiguity.
A similar amount which the new generation companies show in the CTC is the loyalty incentives which is payable on serving the company for a certain period. This is a condition of service which will be maintainable also.
Madhu.T.K
From India, Kannur
A similar amount which the new generation companies show in the CTC is the loyalty incentives which is payable on serving the company for a certain period. This is a condition of service which will be maintainable also.
Madhu.T.K
From India, Kannur
An employee was working in the state PSU and after putting 3 years service he was terminated by the management as he had not having the qualification as per the post for which he was recruited and the mistaken arised due to clarification by concern authority.After 6 month by interim order of Hon'ble HC he was reinstated . after 5 years the Hon'ble HC passed its judgement in favour of management and validate the dismissal order. This order came into knowledge of management after 10 years. management again issue the letter for termination from the back date. An appeal made by the employee before Hon'ble SC who upheld the decision of HC and also directed the management for 10 lakh compensation. now whether he is eligible for payment of gratuity when his dismissal order has been found legal by court and at the same time he served more than 20 years in PSU
From India, Lucknow
From India, Lucknow
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc