Hi, As regard to applicability of Gratuity, forwarding Word attachment file which is given vivid explanation. Regards Ravu
From India, Mumbai
7From India, Mumbai
dear daisy, if one employee who has completed 5years of continous service alongwith 6months den dat 6months calculate as 1year...u calculate gratuity with no. of services of 6years regards gayatri
From India, Halisahar
From India, Halisahar
The employee needs to fill form I You have to fill form J whengiving his gratuity None of them needs to be given to the government. Keep it for your own records.
From India, Mumbai
From India, Mumbai
Dear all,
If go through the definations about the applicability, in my opinion Gratuity is applicable in your case even the number is less than 10 today, subject to completion of 5 years of service by the individual. Look at the definations,
An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Twenty-third Year of Republic of India as follows :
Section: 1
Short title, extent, application and commencement.
(1) This Act may be called the Payment of Grataity Act, 1972.
(2) It extends to the whole of India:
Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.
(3) It shall apply to¬ -
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]
(4) It shall come into force on such date as the Central Government may, by notification, appoint.
Section 3(b) clearly says " ten or more persons are employeed or were emplyeed".
Better to make the 5 years completed employees eligible to avoid further legal consequences.
Ulhas Chandratre
Sr.HR Professional, Pune
From India, Pune
If go through the definations about the applicability, in my opinion Gratuity is applicable in your case even the number is less than 10 today, subject to completion of 5 years of service by the individual. Look at the definations,
An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Twenty-third Year of Republic of India as follows :
Section: 1
Short title, extent, application and commencement.
(1) This Act may be called the Payment of Grataity Act, 1972.
(2) It extends to the whole of India:
Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.
(3) It shall apply to¬ -
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]
(4) It shall come into force on such date as the Central Government may, by notification, appoint.
Section 3(b) clearly says " ten or more persons are employeed or were emplyeed".
Better to make the 5 years completed employees eligible to avoid further legal consequences.
Ulhas Chandratre
Sr.HR Professional, Pune
From India, Pune
The Payment of Gratuity Act is applicable to all employees working in factories, oil-fields,mines,plantations,ports,railway company and every shops & establishment employed 10 or more persons on any day of the preceeeding 12 months.It further stipulates that once a shop or establishment comes into the purview of this Act,it shall continue to be within the ambit of this Act even after number of employees fall below 10.However, the Central Govt. can exempt any establishment from the applicabilty of this Act.In order to become eligible to recive it,the concerned employee has to fulfil the requirement of "continuous service"as defined in the Act.Futher, it is payable only under the circumstances laid down in the Act and not otherwise e.g. in case of retirement,superannuation,resignation,death etc.
Non-payment of gratuity is a serious offence and may result in payment of additional penal interest plus other consequences.So, please take actions as per the above provisions of the Act.
From India, Delhi
Non-payment of gratuity is a serious offence and may result in payment of additional penal interest plus other consequences.So, please take actions as per the above provisions of the Act.
From India, Delhi
Dear Djo,
Please understand THE PAYMENT FOR GRATUITY ACT is applicable on the following organization:-
1. Every Factory (as defined in Factories Act), mines, oil filed, railways, ports etc.
2. Every shop or establishment (as defined in Shop Establishment Act of a state) applies in which 10 or more employees are employed on any day during the year.
3. Every establishment employing 10 or more persons.
4. Once Gratuity Act applies on any establishment, will continue to apply if the employee strength fall short of 10 employees.
In view of the above, your organization still have to follow Gratuity Act even your total strength have become 9.
So, you must continue and make contribution towards gratuity of all those employees who have completed 5 years of continuous service with your organization.
For any query, please revert back.
ThanX & regards,
Suman Yadav
From India, Delhi
Please understand THE PAYMENT FOR GRATUITY ACT is applicable on the following organization:-
1. Every Factory (as defined in Factories Act), mines, oil filed, railways, ports etc.
2. Every shop or establishment (as defined in Shop Establishment Act of a state) applies in which 10 or more employees are employed on any day during the year.
3. Every establishment employing 10 or more persons.
4. Once Gratuity Act applies on any establishment, will continue to apply if the employee strength fall short of 10 employees.
In view of the above, your organization still have to follow Gratuity Act even your total strength have become 9.
So, you must continue and make contribution towards gratuity of all those employees who have completed 5 years of continuous service with your organization.
For any query, please revert back.
ThanX & regards,
Suman Yadav
From India, Delhi
All factory,mine,plantation,oil-field,railway company port and shops & establishment in which 10 or more persons are employed are covered by the Payment of Gratuity Act.Once a shop or establishment comes into the purview of the Payment of Gratuity Act,it shall continue to be within the ambit of this Act even after number of employees falls below 10.
From India, Delhi
From India, Delhi
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx