I appreciate the contribution of Mr. Umakanthan on the issue of " Gratuity". He explanation in nutshell is quite informative.
Regarding including the Gratuity in CTC:- Inclusion in CTC or not to be included opinion differs, because the concept has no legal support from any of the statutes. It is all an act of glorifying the benefits, that the organisation wants to give to an employee. As long as the system of negotiation of payment of salary and related benefits are bargained, the CTC system prevails. Since the gratuity is charged and provision is created for employee benefits, in its accounts, definitely Company has an option to include it in CTC.
(A) HR.Gayathri's query- raises Two issues-(1) the employee in his fag end of 5 years of service- has absconded-legal suspect whether the gratuity is payable? For the issue no 1 of the question-answer lies in Section 2A of the Act deals which deals with the Continuous service and its explanation- Since the employee has absconded action taken to deal with his absence is not explained, means it is still open. If the management terminates his service as per the service rules or the standing orders, payment of gratuity does not arises. because " Gratuity" is payable on three occasions only (a) on Superannuation (b) on his retirement or resignation (c) On his death of disablement.
Regarding Legal Suspect-it is not elaborated or explained in brief, so no suggestions
From India, Bangalore
32Regarding including the Gratuity in CTC:- Inclusion in CTC or not to be included opinion differs, because the concept has no legal support from any of the statutes. It is all an act of glorifying the benefits, that the organisation wants to give to an employee. As long as the system of negotiation of payment of salary and related benefits are bargained, the CTC system prevails. Since the gratuity is charged and provision is created for employee benefits, in its accounts, definitely Company has an option to include it in CTC.
(A) HR.Gayathri's query- raises Two issues-(1) the employee in his fag end of 5 years of service- has absconded-legal suspect whether the gratuity is payable? For the issue no 1 of the question-answer lies in Section 2A of the Act deals which deals with the Continuous service and its explanation- Since the employee has absconded action taken to deal with his absence is not explained, means it is still open. If the management terminates his service as per the service rules or the standing orders, payment of gratuity does not arises. because " Gratuity" is payable on three occasions only (a) on Superannuation (b) on his retirement or resignation (c) On his death of disablement.
Regarding Legal Suspect-it is not elaborated or explained in brief, so no suggestions
From India, Bangalore
Hello Sir,
Good Afternoon,
My name is sarvesh
I am as Admin Manager, I want to know when gov decide minimum wages for sate so in which category admin manager will come in Uttar Pradesh. What is the minimum wages will be of Admin manager if i work in private limited company.?
From India, Moradabad
Good Afternoon,
My name is sarvesh
I am as Admin Manager, I want to know when gov decide minimum wages for sate so in which category admin manager will come in Uttar Pradesh. What is the minimum wages will be of Admin manager if i work in private limited company.?
From India, Moradabad
Dear sir,
One my friend joined the company as a consultant in January 2001, he was raising bill every month & was getting consultancy fees month wise. He was also eligible for yearly performance bonus as regular employees of the company.
After around four years in April 2005 he was become regular employee & got complete CTC letter including PF and everything.
In these case if leaves the company today then he will get gratuity from Jan 2001 or April 2005. There was no break in the job during consultancy period.
As per company's record his join date is April 2005.
Kindly guide me.
From India, Ahmedabad
One my friend joined the company as a consultant in January 2001, he was raising bill every month & was getting consultancy fees month wise. He was also eligible for yearly performance bonus as regular employees of the company.
After around four years in April 2005 he was become regular employee & got complete CTC letter including PF and everything.
In these case if leaves the company today then he will get gratuity from Jan 2001 or April 2005. There was no break in the job during consultancy period.
As per company's record his join date is April 2005.
Kindly guide me.
From India, Ahmedabad
Dear friend,
I think that in the first place, it is necessary to understand the concepts of "contract of service" and "contract for service".
A "contract of service" is an explicit or implied agreement between the individual who provides employment and is called as "employer" and the other individual who accepts the employment and serves under the former subject to his control and supervision as per the terms of the contract and therefore called as "employee". Thus there exists a substantial relationship of employer and employee which is governed by the terms of the contract between them. The consideration payable to the employee is called "salary" or "wage" and certain other statutory benefits called as "fringe benefits"of employment.
A "contract for service" is an explicit agreement between two parties of whom the provider of the service is called as "contractor" and the other who gets the service is the "contractee". Here the contractual relationship between the two lasts only during the subsistence of the contract subject to the mutual compliance of the predetermined terms of the contract and no substantial relationship is created thereafter. The consideration payable to the contractor under the contract for service is "contract charges" or " fee" as may be depending upon the nature of services rendered.
Coming to your friend's case, the first 4 years from 2001, he was under a contract for service and therefore a contractor only rendering some specified services to the organization. From 2005 onwards, he became an employee of the organization under a contract of employment.
Therefore, if he resigns now, he can not stake any claim for gratuity for the period of service rendered as a consultant despite of no gap between the two spells the former one as a contractor and the latter one as an employee of the same organization.
From India, Salem
I think that in the first place, it is necessary to understand the concepts of "contract of service" and "contract for service".
A "contract of service" is an explicit or implied agreement between the individual who provides employment and is called as "employer" and the other individual who accepts the employment and serves under the former subject to his control and supervision as per the terms of the contract and therefore called as "employee". Thus there exists a substantial relationship of employer and employee which is governed by the terms of the contract between them. The consideration payable to the employee is called "salary" or "wage" and certain other statutory benefits called as "fringe benefits"of employment.
A "contract for service" is an explicit agreement between two parties of whom the provider of the service is called as "contractor" and the other who gets the service is the "contractee". Here the contractual relationship between the two lasts only during the subsistence of the contract subject to the mutual compliance of the predetermined terms of the contract and no substantial relationship is created thereafter. The consideration payable to the contractor under the contract for service is "contract charges" or " fee" as may be depending upon the nature of services rendered.
Coming to your friend's case, the first 4 years from 2001, he was under a contract for service and therefore a contractor only rendering some specified services to the organization. From 2005 onwards, he became an employee of the organization under a contract of employment.
Therefore, if he resigns now, he can not stake any claim for gratuity for the period of service rendered as a consultant despite of no gap between the two spells the former one as a contractor and the latter one as an employee of the same organization.
From India, Salem
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