Thanks a lot for the attachment by Tirlok.
I understand that the bill has not been turned out as amendment to the primary Act though the bill was a good initiative in this regard.
Applicability of ESI act to educational institutions has been made by the state authorities. As such Kerala government has extended the facility to educational institutions including teachers subject to the eligibility conditions as prescribed under the Act. Therefore, if there are teachers and others drawing salary of not more than Rs 10000 in educational institutions run by private management without the aid of government , then they are covered. Invariably, teachers who are drawing salary of more than Rs 10000 will not be covered just like any employee of factory or establishment who is drawing salary of more than Rs 10000. Similarly, the application of ESI Act is restricted to employees of unaided/ self financing schools and colleges and not institutions runs by government and private institutions run with the financial aid of government.
Regards,
Madhu.T.K
From India, Kannur
4250I understand that the bill has not been turned out as amendment to the primary Act though the bill was a good initiative in this regard.
Applicability of ESI act to educational institutions has been made by the state authorities. As such Kerala government has extended the facility to educational institutions including teachers subject to the eligibility conditions as prescribed under the Act. Therefore, if there are teachers and others drawing salary of not more than Rs 10000 in educational institutions run by private management without the aid of government , then they are covered. Invariably, teachers who are drawing salary of more than Rs 10000 will not be covered just like any employee of factory or establishment who is drawing salary of more than Rs 10000. Similarly, the application of ESI Act is restricted to employees of unaided/ self financing schools and colleges and not institutions runs by government and private institutions run with the financial aid of government.
Regards,
Madhu.T.K
From India, Kannur
Mr. Khola,
Greetings from my behalf!
I have been reading your post many times here. I appreciate your guidance. It had helped a lot at work as well as in enhancing the knowledge.
Iam working as an Asst Manager HR . Iam looking for a change for better prospects in career. My location preference is Gurgaon. can you please guide me towards this as iam working at Gandhinagar, Gujarat.
Thanks & Regards,
Priyanka Sharma
From India, Ahmadabad
Greetings from my behalf!
I have been reading your post many times here. I appreciate your guidance. It had helped a lot at work as well as in enhancing the knowledge.
Iam working as an Asst Manager HR . Iam looking for a change for better prospects in career. My location preference is Gurgaon. can you please guide me towards this as iam working at Gandhinagar, Gujarat.
Thanks & Regards,
Priyanka Sharma
From India, Ahmadabad
The conversation was started some two years back, I think. By now, the Gratuity Act amendment has taken place and as of now, the teachers are also covered under the Act and they are also eligible for gratuity.
Salary for the purpose of calculation of gratuity should include Dearness Allowance since it is a part of statutory salary by all means. Though there are difference of opinion about treatment of HRA and other components, DA is always part of statutory salary under all labour Acts.
Madhu.T.K
From India, Kannur
Salary for the purpose of calculation of gratuity should include Dearness Allowance since it is a part of statutory salary by all means. Though there are difference of opinion about treatment of HRA and other components, DA is always part of statutory salary under all labour Acts.
Madhu.T.K
From India, Kannur
I have read on labourlawreporter.net for June 2012 month judgement in which below mentioned is :
Teacher would get gratuity w.e.f. 3.4.1997. Bom. HC 618
So please go through the June 2012 Issue of journal of HRM&LLR to understand the judgement.
I don't have the same journal to read the said judegement but I request to read.
From India, Ahmadabad
Teacher would get gratuity w.e.f. 3.4.1997. Bom. HC 618
So please go through the June 2012 Issue of journal of HRM&LLR to understand the judgement.
I don't have the same journal to read the said judegement but I request to read.
From India, Ahmadabad
Dear Seniors, This is my first time on this forum, so please excuse if I am not posting to the right place.
One of the senior most executive of the company I work for resigned this Feb 2014 after working with the company for about 14 years. We have less than 10 employees in the FY ending Mar 2014 and also during Apr 2012 to Mar 2013 we had less than 10 employees. In the FY Apr 2011 to Mar 2012 we may have had more than 10 employees.
1. Does the gratuity act apply to my company?
2. Even if it does not apply, I will appreciate an answer to my this question. The employee who resigned, drew a basic monthly salary of Rs75,000/-, Rs65,000/- and Rs10,000/- in 3 separate names. He did this for his tax planning. So as per the calculation listed in this forum what is the gratuity amount payable? Is it (Rs75,000 x 15 x 10)/26 = Rs4,32,692/- PLUS (Rs65,000 x 15 x 10)/26 = Rs3,75,000/- PLUS (Rs.10,000 x 15 x 10)/26 = Rs57,692/- to be paid into 3 separate accounts? I also read in the act that the maximum amount of gratuity? Can anyone please advice us for this? I am new at this job and will appreciate any one reaching out and helping me on this. Thanks in advance
From India, Ahmedabad
One of the senior most executive of the company I work for resigned this Feb 2014 after working with the company for about 14 years. We have less than 10 employees in the FY ending Mar 2014 and also during Apr 2012 to Mar 2013 we had less than 10 employees. In the FY Apr 2011 to Mar 2012 we may have had more than 10 employees.
1. Does the gratuity act apply to my company?
2. Even if it does not apply, I will appreciate an answer to my this question. The employee who resigned, drew a basic monthly salary of Rs75,000/-, Rs65,000/- and Rs10,000/- in 3 separate names. He did this for his tax planning. So as per the calculation listed in this forum what is the gratuity amount payable? Is it (Rs75,000 x 15 x 10)/26 = Rs4,32,692/- PLUS (Rs65,000 x 15 x 10)/26 = Rs3,75,000/- PLUS (Rs.10,000 x 15 x 10)/26 = Rs57,692/- to be paid into 3 separate accounts? I also read in the act that the maximum amount of gratuity? Can anyone please advice us for this? I am new at this job and will appreciate any one reaching out and helping me on this. Thanks in advance
From India, Ahmedabad
Your establishment will come under the purview of Payment of Gratuity Act and as such the resigned employee is eligible for gratuity for his 14 year long service.
The law does not permit any person to take advantage by tax evasion or any other means. As an employer, you are also not expected to allow such misrepresentations. There is no genuinity when you say that one person worked under three names. This is illegal also to forge signatures in the records. If he has been a member of PF, naturally, he would have represented three persons with three different accounts. This is in fact a criminal offence in which the employer is also a party by knowingly supporting the act of misrepresentation and forgery. Therefore, first of all, sort out the matter, pay tax, penalties or whatever that comes in the way and then think about payment of gratuity.
Madhu.T.K
From India, Kannur
The law does not permit any person to take advantage by tax evasion or any other means. As an employer, you are also not expected to allow such misrepresentations. There is no genuinity when you say that one person worked under three names. This is illegal also to forge signatures in the records. If he has been a member of PF, naturally, he would have represented three persons with three different accounts. This is in fact a criminal offence in which the employer is also a party by knowingly supporting the act of misrepresentation and forgery. Therefore, first of all, sort out the matter, pay tax, penalties or whatever that comes in the way and then think about payment of gratuity.
Madhu.T.K
From India, Kannur
Dear friend
Thanks for enlightening us on such INGENIOUS, CREATIVE practices !!!
He was being paid salary in 3 different names. Logically he is eligible for GRATUITY under all 3 names.
When such practices was not objected then; why is it being objected now, when company is required to PAY GRATUITY ???
What about the INCOME TAX evaded (by allowing a lower rate of Tax or availing exemptions) by such CRIMINAL CONSPIRACY ??
Better you seek expert legal help from a Lawyer.
Also remember, if you do not pay gratuity now, the employee may make out a criminal case against you.
The matter is NO LONGER just in the realm of Employment & Labour Law.
Regards.
From India, Delhi
Thanks for enlightening us on such INGENIOUS, CREATIVE practices !!!
He was being paid salary in 3 different names. Logically he is eligible for GRATUITY under all 3 names.
When such practices was not objected then; why is it being objected now, when company is required to PAY GRATUITY ???
What about the INCOME TAX evaded (by allowing a lower rate of Tax or availing exemptions) by such CRIMINAL CONSPIRACY ??
Better you seek expert legal help from a Lawyer.
Also remember, if you do not pay gratuity now, the employee may make out a criminal case against you.
The matter is NO LONGER just in the realm of Employment & Labour Law.
Regards.
From India, Delhi
dear all,
Hope you are doing well.................
actually i have one doubt regarding the gratuity, in calculation of gratuity we consider 5 years completion, if employee complete 5 year service then only we have to pay gratuity,
is there any option to pay gratuity without completion of 5 years because in CTC we mentioned the gratuity plz ans for this.
From India, Delhi
Hope you are doing well.................
actually i have one doubt regarding the gratuity, in calculation of gratuity we consider 5 years completion, if employee complete 5 year service then only we have to pay gratuity,
is there any option to pay gratuity without completion of 5 years because in CTC we mentioned the gratuity plz ans for this.
From India, Delhi
By including the gratuity amount in the CTC statement alone will not make an employee entitled to gratuity without fulfilling the service conditions mentioned in the Payment of Gratuity Act because the CTC statement itself may contain certain conditions based on which the said amount will be paid. For example, you may include incentives in the CTC but the payment of incentive will be based on certain conditions like performance, achievement of targets etc and that will be shown as foot note to CTC statement. Similarly, there should be a footnote against the gratuity as a component of CTC which will say that as per existing law/ Gratuity Rules etc. In such scenario, the employee may not be eligible to get gratuity if he has not put in the minimum qualifying service.
Against all above, I would say that if gratuity is shown in the pay slip as deduction from the gross salary or CTC, as the case may be, the employee will be entitled to get it back with interest even if he has not put in five years of service, This is because, in such case, it is a monthly deduction towards a fund and whatever is deducted towards a fund by the employer should be given back to the employee once the employee- employer relationship is terminated. For example, PF deduction is refundable even if the establishment is an exempted one and is maintaining its own PF Trust. ESI, another approved deduction is towards a scheme in return of which the employee gets some benefits. Moreover, an employer is not expected to deduct any amount from the salary of employee towards any fund called gratuity fund.
Madhu.T.K
From India, Kannur
Against all above, I would say that if gratuity is shown in the pay slip as deduction from the gross salary or CTC, as the case may be, the employee will be entitled to get it back with interest even if he has not put in five years of service, This is because, in such case, it is a monthly deduction towards a fund and whatever is deducted towards a fund by the employer should be given back to the employee once the employee- employer relationship is terminated. For example, PF deduction is refundable even if the establishment is an exempted one and is maintaining its own PF Trust. ESI, another approved deduction is towards a scheme in return of which the employee gets some benefits. Moreover, an employer is not expected to deduct any amount from the salary of employee towards any fund called gratuity fund.
Madhu.T.K
From India, Kannur
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