Dear Msmoorthy ji,
I failed to understand your last post. I wish to bring more clarity in the subject matter as under.
This Section of compulsory insurance was inserted in the Act by Act No. 22 of 1987 with effect from 1.10.1987 giving liberty to the appropriate Governments to notify the date of coming into effect of the said Section. This Section clearly states, which is given verbatim as "With effect from such date as may be notified by the appropriate Government in this behalf, every employer, .....".
You have uploaded a notification of AP. Likewise, there is no notification by GOM till date. Also, you stated that the notification uploaded by you of AP Govt is applicable to TS. This cannot happen. Each State Govt has to come out with a notification like AP Govt.
From India, Mumbai
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2636I failed to understand your last post. I wish to bring more clarity in the subject matter as under.
This Section of compulsory insurance was inserted in the Act by Act No. 22 of 1987 with effect from 1.10.1987 giving liberty to the appropriate Governments to notify the date of coming into effect of the said Section. This Section clearly states, which is given verbatim as "With effect from such date as may be notified by the appropriate Government in this behalf, every employer, .....".
You have uploaded a notification of AP. Likewise, there is no notification by GOM till date. Also, you stated that the notification uploaded by you of AP Govt is applicable to TS. This cannot happen. Each State Govt has to come out with a notification like AP Govt.
From India, Mumbai
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Please read the attachment sent by me "THE GRATUITY ACT, 1972 The Payment of Gratuity (Maharashtra) Rules, 1972." Section 4A clearly stipulates for the ibid provision, without any clause of ifs and buts. (Why are we getting confused with Act 22 insertions, etc.?)
As regards the AP notification (of the combined state) pertaining to a period prior to the split of AP and TS, the Acts, Rules, and GOs of the combined state are made applicable mutatis mutandis for both states, unless otherwise explicitly cited. Please seek clarification from respective state government officials, and if your point of view is ratified by the government authorities, everyone will accept your viewpoint and be thankful for the clarification.
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As regards the AP notification (of the combined state) pertaining to a period prior to the split of AP and TS, the Acts, Rules, and GOs of the combined state are made applicable mutatis mutandis for both states, unless otherwise explicitly cited. Please seek clarification from respective state government officials, and if your point of view is ratified by the government authorities, everyone will accept your viewpoint and be thankful for the clarification.
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Dear Msmoorthy ji,
Regarding the second part of your post #22 above, you are correct, as I mentioned earlier. There is a notification by the AP Govt to implement the 1987 amendment in Section 4A. However, I misunderstood TS as Tamilnadu State.
There is no need to seek clarification from State Govt Officials on the subject matter. I have been practicing in Maharashtra for many years, and I am aware of the knowledge levels of Govt Officers in Maharashtra's Labor Department on Labor Law subjects. When someone like Mr. Saikumar, who has been practicing as an HR & Labor Relations Adviser in Maharashtra for decades, agrees with my views, there is no need to seek clarification from anyone else.
I have the bare Act with Maharashtra Rules updated, and when I make a statement, it is after thorough study of the subject. Sometimes I may make mistakes and learn from them.
The amendment of 1987 in Section 4A of the POG Act is very clear. It includes a condition stating - "with effect from such date as may be notified by the appropriate Government in this behalf, every employer..."
I conclude this subject from my side with no further posts on this matter.
From India, Mumbai
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Regarding the second part of your post #22 above, you are correct, as I mentioned earlier. There is a notification by the AP Govt to implement the 1987 amendment in Section 4A. However, I misunderstood TS as Tamilnadu State.
There is no need to seek clarification from State Govt Officials on the subject matter. I have been practicing in Maharashtra for many years, and I am aware of the knowledge levels of Govt Officers in Maharashtra's Labor Department on Labor Law subjects. When someone like Mr. Saikumar, who has been practicing as an HR & Labor Relations Adviser in Maharashtra for decades, agrees with my views, there is no need to seek clarification from anyone else.
I have the bare Act with Maharashtra Rules updated, and when I make a statement, it is after thorough study of the subject. Sometimes I may make mistakes and learn from them.
The amendment of 1987 in Section 4A of the POG Act is very clear. It includes a condition stating - "with effect from such date as may be notified by the appropriate Government in this behalf, every employer..."
I conclude this subject from my side with no further posts on this matter.
From India, Mumbai
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All you learned people, Thanks a lot for your detailed inputs. It has given me enough explanation to present it further to my manager.
From India, Chandigarh
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From India, Chandigarh
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Sirs,
How to counter a labor contractor who, for example, provides security services or personnel, collects the gratuity amount from the company, and releases a contractual employee before completing five years of service, thus pocketing the employee's gratuity amount?
What options are available to the company, the principal employer?
From India, Pune
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How to counter a labor contractor who, for example, provides security services or personnel, collects the gratuity amount from the company, and releases a contractual employee before completing five years of service, thus pocketing the employee's gratuity amount?
What options are available to the company, the principal employer?
From India, Pune
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Reposted......
Sirs,
How to counter a labor contractor, for example, providing security services/personnel, who collects the gratuity amount from the company and releases a contractual employee before completion of 5 years (eligibility) of service, pocketing the gratuity amount?
What options are available to the company, the principal employer?
From India, Pune
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Sirs,
How to counter a labor contractor, for example, providing security services/personnel, who collects the gratuity amount from the company and releases a contractual employee before completion of 5 years (eligibility) of service, pocketing the gratuity amount?
What options are available to the company, the principal employer?
From India, Pune
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Dear Sandeepsahni,
If it is a pure manpower contract, in such case you can exclude the gratuity amount from the contractor's monthly costing. Ask the contractor to submit quote/bill without gratuity component. Pay the gratuity amount on basis of actual working/payment agst documentary evidence (only when the employee complete 05 years of service).
However, in case of transferable service it is little bit difficult to identify the period, specially in security contract you can’t predict / calculate the service period, as this is movable nature job. May be the employee worked in other organization from long back and deputed at your site for a short period and then left the job. In such case the contractor is liable to pay gratuity, even though the employee has not completed 05 years with you. Even in such case/s also you can ask the contractor to raise separate bill for the period for which the employee deputed at your location. The balance amount (other location) contractor will be bear.
Hope my point is cleared to you, experienced member can put more light on the matter.
From India, Delhi
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If it is a pure manpower contract, in such case you can exclude the gratuity amount from the contractor's monthly costing. Ask the contractor to submit quote/bill without gratuity component. Pay the gratuity amount on basis of actual working/payment agst documentary evidence (only when the employee complete 05 years of service).
However, in case of transferable service it is little bit difficult to identify the period, specially in security contract you can’t predict / calculate the service period, as this is movable nature job. May be the employee worked in other organization from long back and deputed at your site for a short period and then left the job. In such case the contractor is liable to pay gratuity, even though the employee has not completed 05 years with you. Even in such case/s also you can ask the contractor to raise separate bill for the period for which the employee deputed at your location. The balance amount (other location) contractor will be bear.
Hope my point is cleared to you, experienced member can put more light on the matter.
From India, Delhi
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If gratuity is paid every month with salary, then it will become taxable under the Income Tax Act, 1961. However, when gratuity is paid as a lump sum on retirement, then a certain amount is non-taxable. This amount, which will not attract income tax, is likely to be enhanced to INR 20 Lakhs.
From India, Mumbai
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From India, Mumbai
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Dear Mkpande1,
I just want to add to what you said. If gratuity is paid every month, then it is not considered gratuity as per the Payment of Gratuity (POG) Act; it is rather a part of the employee's monthly salary. Additionally, the employee will certainly have a claim over the gratuity as per the POG Act upon separation after completing 5 years of continuous service. Section 4 of the Act stipulates that gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years.
When any payment is due upon termination, how can it be paid before termination on a monthly basis? Such questions should not arise from the HR fraternity.
It is important to note that this would pose an additional burden for the employer.
From India, Mumbai
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I just want to add to what you said. If gratuity is paid every month, then it is not considered gratuity as per the Payment of Gratuity (POG) Act; it is rather a part of the employee's monthly salary. Additionally, the employee will certainly have a claim over the gratuity as per the POG Act upon separation after completing 5 years of continuous service. Section 4 of the Act stipulates that gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years.
When any payment is due upon termination, how can it be paid before termination on a monthly basis? Such questions should not arise from the HR fraternity.
It is important to note that this would pose an additional burden for the employer.
From India, Mumbai
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Hey,
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Regards,
Adv. Sneha
From India, New Delhi
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Please subscribe to the monthly newsletter (For HR) by clicking on this link: https://mailchi.mp/35eea4b53f7c/sankhlaconsultants.
Regards,
Adv. Sneha
From India, New Delhi
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Paying-barber-i n-instalments_1 17.jpg
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc