Dear Pradeep,
As you are seems to be located in AP, the AP Shops & Establishments Act, 1988 would be applicable. The term Service Compensation is referred in this Act as applicable in the case of "termination", this is referred to as "Service Compensation". Whereas the Gratuity is payable under the Gratuity Act
Both are diff. Why you should get confused, what is the matter ?
See the attachment for more clarity.
Regards,
kumar.s.
From India, Bangalore
Acknowledge(0)
Amend(0)
402As you are seems to be located in AP, the AP Shops & Establishments Act, 1988 would be applicable. The term Service Compensation is referred in this Act as applicable in the case of "termination", this is referred to as "Service Compensation". Whereas the Gratuity is payable under the Gratuity Act
Both are diff. Why you should get confused, what is the matter ?
See the attachment for more clarity.
Regards,
kumar.s.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Mr.Kumar,
Thanks a lot for your reply.
The Service Compensation is payable even in case of resignation (not only in case of termination) also as far as my knowledge is concerned subject to completion of 1 yr service in an establishment wherever there is no Gratuity as per the A.P. Shops & Establishments Act 1988. Is it correct or not?
Actually one of my friends has worked in a Company (in A.P.) which was registered under A.P. Shops & Establishments Act in Senior Management position for 1 yr 11 months and he has resigned. Is he eligible for Service Compensation or not? Kindly clarify.
Thanks once again.
Best Regards,
Pradeep
From India, Hyderabad
Acknowledge(0)Amend(0)
Thanks a lot for your reply.
The Service Compensation is payable even in case of resignation (not only in case of termination) also as far as my knowledge is concerned subject to completion of 1 yr service in an establishment wherever there is no Gratuity as per the A.P. Shops & Establishments Act 1988. Is it correct or not?
Actually one of my friends has worked in a Company (in A.P.) which was registered under A.P. Shops & Establishments Act in Senior Management position for 1 yr 11 months and he has resigned. Is he eligible for Service Compensation or not? Kindly clarify.
Thanks once again.
Best Regards,
Pradeep
From India, Hyderabad
Acknowledge(0)Amend(0)
In my view this sec.47 specifically 47 (5) should be gone thro' together with the Gratuity Act,
Under the Gratuity Act the eligibility is for a continuous service of 5 yrs. depending on these conditions one has to study the individual's case. A plain reading says he would be eligible since he won't be paid under Gratuity Act. However you may search for some settled case laws which would throw more light on this issue. Right now I don't have the relevant case laws. You may consult an advocate in AP.
Regards,
kumar.s.
From India, Bangalore
Acknowledge(0)Amend(0)
Under the Gratuity Act the eligibility is for a continuous service of 5 yrs. depending on these conditions one has to study the individual's case. A plain reading says he would be eligible since he won't be paid under Gratuity Act. However you may search for some settled case laws which would throw more light on this issue. Right now I don't have the relevant case laws. You may consult an advocate in AP.
Regards,
kumar.s.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Sir: My son in law joined a multi-national software company on the 9th May, 2007 and resigned his job w.e.f. 10th February, 2012. (The resignation was at the instance of the management, I understand). Unfortunately he died on the 3rd March, 2012. Kindly inform whether his nominee can claim Gratuity, since he has not completed five years of service at the time of resigning the job. If there are any relevant decisions and judgement, kindly inform me at your earliest. Kindly reply to my e-mail ID <rkrajagopalan@yahoo.co.in> Thanks and regards.
R.K.RAJAGOPALAN, No. 9, 7th 'B' Main, Muthiyal Nagar, Bangalore - 560054. Mob: 09986700475
From India, Bangalore
Acknowledge(0)Amend(0)
R.K.RAJAGOPALAN, No. 9, 7th 'B' Main, Muthiyal Nagar, Bangalore - 560054. Mob: 09986700475
From India, Bangalore
Acknowledge(0)Amend(0)
For gratuity calculation purpose, what parts of salary is considered, is it just BASIC or any other allowance like Dearness Allowance. Private sectors call the allowances differently like Specialization Allowance apart from Basic as part of the salary. Act says 'WAGES'. Is this specialization allowance part of 'WAGES' definition?
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
For gratuity calculation purpose, what parts of salary is considered, is it just BASIC or any other allowance like Dearness Allowance. Private sectors call the allowances differently like Specialization Allowance apart from Basic as part of the salary. Act says 'WAGES'. Is this specialization allowance part of 'WAGES' definition?
-Janardhan.
From India, Bangalore
Acknowledge(0)Amend(0)
-Janardhan.
From India, Bangalore
Acknowledge(0)Amend(0)
If the gratuity is part of CTC, then is it mendatory to pay in F&F even if the period is less then 5 years. Regards Tejas K
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Suresh,
As per my knowledge and experience:
1. The Assistant Commissioner of Labour of your establishment (organization) area is the proper authority under the Payment of Gratuity Act. You can initially make a simple application to him regarding your case. Upon receipt of your application, the authority will contact your previous company and attempt an amicable settlement. If no settlement is reached, then you can have your lawyer file a case for the payment of gratuity under reference.
2. Regarding the reduction of remuneration - since you are working at a senior level, at the time of joining, you must have received the appointment order or documents related to remuneration. Based on these documents (showing higher pay), you can claim in court for a violation of the contract. While this is possible, it is not advisable as making a litigation with the employer at your senior level may cause problems for you. This is my opinion.
SDP
From India, Kolhapur
Acknowledge(0)Amend(0)
As per my knowledge and experience:
1. The Assistant Commissioner of Labour of your establishment (organization) area is the proper authority under the Payment of Gratuity Act. You can initially make a simple application to him regarding your case. Upon receipt of your application, the authority will contact your previous company and attempt an amicable settlement. If no settlement is reached, then you can have your lawyer file a case for the payment of gratuity under reference.
2. Regarding the reduction of remuneration - since you are working at a senior level, at the time of joining, you must have received the appointment order or documents related to remuneration. Based on these documents (showing higher pay), you can claim in court for a violation of the contract. While this is possible, it is not advisable as making a litigation with the employer at your senior level may cause problems for you. This is my opinion.
SDP
From India, Kolhapur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Payment of Gratuity Act, 1972 & The Rules.ppt
FORM - F (TN Payment of Gratuity Rules, 1973).xls
Abstract of PAYMENT OF GRATUITY ACT & RULES, 1972, FORM U[1].doc