Dear
Just like in cricket when a decision for giving LBW is given by the UMPIRE the benefit of doubt is to be given to the batsmen.Similarly when a doubt arises in the mind of the HR professional to provide/deny a benefit to the Employee the benefit of doubt is to be given to the employee. Gratuity is a legal entitlement and not gratis which all may note.Unpaid Gratuity is covered by Sec 2 (10) of THE BOMBAY LABOUR WELFARE FUND ACT,1953
"unpaid accumulation" means all payments due to the employees but not made to them within a period of three years from the date on which they became due whether before or after the commencement of this Act including the wages, and gratuity legally payable but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952);
.
In accordance with Sec 3 Welfare Fund
(1)The Administrator shall constitute a fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument; all unpaid accumulations shall be paid at such intervals as may be prescribed to the Board, which shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 6A, and the other sums specified in sub-section (2) shall be paid into the Fund.
(2)The Fund shall consist of-
(a)all fines realised from the employees;
(b)unpaid accumulations transferred to the Fund under section 6A;
Sec 7 A deals with Unpaid acumulations and claims thereto:
(1)All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the provision of section 3 shall on such payment, discharge an employer of the liability to make payment to an employee in respect thereof but to the extent only or the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board
The impression that when a person is terminated ,resigns or absconds or severance takes place or does not claim his dues the Employer can appropriate the amounts due the Employee is not the correct approach.These are in the nature of their entitlement.What the employee in the maximum deduct is notice pay if proper notice is not given.
because the Employment market is vibrant Employees as they are being rewarded more are not bothered of their past entitlements.Employers by way of ethics should not take advantage of the situation.
Please note it the Employees money which is in the Employers hands.Such amounts must be immediately transferred to unpaid Salaries Account and after three years deposited with the Welfare Fund.
The above is an essence of Statutory compliance and what is not the employers money but the Employees cannot be retained or illegally enriched.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684.
From India, Bangalore
50Just like in cricket when a decision for giving LBW is given by the UMPIRE the benefit of doubt is to be given to the batsmen.Similarly when a doubt arises in the mind of the HR professional to provide/deny a benefit to the Employee the benefit of doubt is to be given to the employee. Gratuity is a legal entitlement and not gratis which all may note.Unpaid Gratuity is covered by Sec 2 (10) of THE BOMBAY LABOUR WELFARE FUND ACT,1953
"unpaid accumulation" means all payments due to the employees but not made to them within a period of three years from the date on which they became due whether before or after the commencement of this Act including the wages, and gratuity legally payable but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952);
.
In accordance with Sec 3 Welfare Fund
(1)The Administrator shall constitute a fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument; all unpaid accumulations shall be paid at such intervals as may be prescribed to the Board, which shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 6A, and the other sums specified in sub-section (2) shall be paid into the Fund.
(2)The Fund shall consist of-
(a)all fines realised from the employees;
(b)unpaid accumulations transferred to the Fund under section 6A;
Sec 7 A deals with Unpaid acumulations and claims thereto:
(1)All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the provision of section 3 shall on such payment, discharge an employer of the liability to make payment to an employee in respect thereof but to the extent only or the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board
The impression that when a person is terminated ,resigns or absconds or severance takes place or does not claim his dues the Employer can appropriate the amounts due the Employee is not the correct approach.These are in the nature of their entitlement.What the employee in the maximum deduct is notice pay if proper notice is not given.
because the Employment market is vibrant Employees as they are being rewarded more are not bothered of their past entitlements.Employers by way of ethics should not take advantage of the situation.
Please note it the Employees money which is in the Employers hands.Such amounts must be immediately transferred to unpaid Salaries Account and after three years deposited with the Welfare Fund.
The above is an essence of Statutory compliance and what is not the employers money but the Employees cannot be retained or illegally enriched.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684.
From India, Bangalore
Hi all, I studied all the lines of this post.Mr rajkumar,i would suggest please go through the payment of grat Act properly before answering.Please take it in a positive way...ok.
Mr Surendra M Bhanot and K Ramachandra were perfectly answered.
R'gds
Amrita Mishra/Sachin lala
CA/HR Manager-Comp&Ben
From India, Dhanbad
Mr Surendra M Bhanot and K Ramachandra were perfectly answered.
R'gds
Amrita Mishra/Sachin lala
CA/HR Manager-Comp&Ben
From India, Dhanbad
My dear amritamishralala
I welcome you to CiteHR.com and look forward to a long fruitful association with you.
I appreciate your spirit and emotions.
Which post are you referring to ?? There are two posts in this thread.
I wonder how all the learned members have not taken cognizance of the error in my post, as pointed out by you !!
Dear friend, your remarks remind me of an incident that took place some years back.
There are times when satire, sarcasm, dryness, mockery, causticness, wit, sardonicism, dramatic irony etc. are used in writing (and in English literature/composition).
I did not want to publicly embarrass our member Sanjay_n, whose company is not paying gratuity to people who have rendered more than 11 years of service; on one pretext or the other.
Hence, I used apparently in-offensive language, coaxing him to come out with more information/disclosures, and to make him understand that it is neither fair nor legal. (For obvious reasons, he chose not to reply to my queries).
However, I think unlike other experienced members who were able to understand what I am implying, you as a new member, were unable to fathom it.
I request you to kindly re-read my post again, without rushing through it, and try to understand what I actually wish to convey; and you"ll find that nothing has been recommended by me, which is contrary to the provisions enshrined in the Payment of Gratuity Act 1972.
I have taken your statement in a positive way and I would also request you to do the same. There are many things in life; which are not "instant" or "fast" like noodles, food or coffee; and they need to be chewed, enjoyed and digested.... slowly.
Warm regards.
From India, Delhi
I welcome you to CiteHR.com and look forward to a long fruitful association with you.
I appreciate your spirit and emotions.
Which post are you referring to ?? There are two posts in this thread.
I wonder how all the learned members have not taken cognizance of the error in my post, as pointed out by you !!
Dear friend, your remarks remind me of an incident that took place some years back.
The moral of the story is : At times, things are not stated in plain English, but one has to read "between the lines".I was at the company lawyers' office as he was talking to another visitor, "I think your HR deptt. has gone to the zoo !!"
The other person could not understand this remark.
The renowned lawyer turned to me and asked, "Did you understand what I meant ?"
I also said, "I am sorry Sir, I really have no idea what you are talking about."
He then explained, "What I wanted to say was that the department has gone to the dogs. But since it would not sound nice, I said it has gone to the zoo."
There are times when satire, sarcasm, dryness, mockery, causticness, wit, sardonicism, dramatic irony etc. are used in writing (and in English literature/composition).
I did not want to publicly embarrass our member Sanjay_n, whose company is not paying gratuity to people who have rendered more than 11 years of service; on one pretext or the other.
Hence, I used apparently in-offensive language, coaxing him to come out with more information/disclosures, and to make him understand that it is neither fair nor legal. (For obvious reasons, he chose not to reply to my queries).
However, I think unlike other experienced members who were able to understand what I am implying, you as a new member, were unable to fathom it.
I request you to kindly re-read my post again, without rushing through it, and try to understand what I actually wish to convey; and you"ll find that nothing has been recommended by me, which is contrary to the provisions enshrined in the Payment of Gratuity Act 1972.
I have taken your statement in a positive way and I would also request you to do the same. There are many things in life; which are not "instant" or "fast" like noodles, food or coffee; and they need to be chewed, enjoyed and digested.... slowly.
Warm regards.
From India, Delhi
Dear, K.Ramachandra as per your answer how to pay gratuity after complition 6 year 6month & 20 days basis & Da 11000RS any formula please tell me thanks Rajendra VADODARA
On the basis of Legal Entity of the company we can discuss about gratuity
Ist you have recruited in india as indian company, so your company is liable to pay gratuity who is completed 5 years of service.
IInd you are transfered to UK on which company or branch.
1) If you have deputed/transfered to UK on the basis of present appointment i.e., indian company, then you are not liable for payment of gratuity till resignation.
II) If you have transfered to UK in your subsidary or any your controlled company (name change) which was followed by the rules and regulations of UK. you are liabile to pay gratuity in indian company if he completed 5 years of service.
Mohan
From India, Hyderabad
Ist you have recruited in india as indian company, so your company is liable to pay gratuity who is completed 5 years of service.
IInd you are transfered to UK on which company or branch.
1) If you have deputed/transfered to UK on the basis of present appointment i.e., indian company, then you are not liable for payment of gratuity till resignation.
II) If you have transfered to UK in your subsidary or any your controlled company (name change) which was followed by the rules and regulations of UK. you are liabile to pay gratuity in indian company if he completed 5 years of service.
Mohan
From India, Hyderabad
Dear Rajendra, This is Government rule/act. The company is liable to pay gratuity who is completed 5 years of service.
From India, Hyderabad
From India, Hyderabad
Dear Member,
Just want to know if the Gratuity is a part of CTC and if the employee does not complete 5 Years of service and resigns then is that deducted amount payable to him. Does this supported by any evidance or court.
Pls share your views on this as lot of companies are showing gratuity as a part of CTC.
From India, Pune
Just want to know if the Gratuity is a part of CTC and if the employee does not complete 5 Years of service and resigns then is that deducted amount payable to him. Does this supported by any evidance or court.
Pls share your views on this as lot of companies are showing gratuity as a part of CTC.
From India, Pune
As per Gratuity Act, 6 months and above is to be treated as a complete year.Hence 6 year 6month & 20 days is to be treated as 7 years. JR Kumar
From India, Hyderabad
From India, Hyderabad
Dear Mr Rajendra,
To calculate gratuity for 6 year 6month & 20 days
basis & Da 11000RS
as already answered by our friends, gratuity payable is for 7 years (6months and above to be treated as one year)
(Basic+ DA)x7x15 / 26 i.e. 11000x7x15/26
Hope you got it ?
Regards
K.Ramachandra
Bangalore
To calculate gratuity for 6 year 6month & 20 days
basis & Da 11000RS
as already answered by our friends, gratuity payable is for 7 years (6months and above to be treated as one year)
(Basic+ DA)x7x15 / 26 i.e. 11000x7x15/26
Hope you got it ?
Regards
K.Ramachandra
Bangalore
Hi Sanjay
Ramachandra has clearly calrified your concerns and I completely agree with him .
In addition to this I want to share my opinion on Gratuity . Employee who has completed 5 years of continous service is eligible for Gratuity . There is a confusion on the eligilbility criteria due to the recent court order citing a employee who completes 4 years and 240 days is eligible . Agreed this is case , not an amendment in the law , unless there is a amendment completion of 4 years and 240 days cannot be effected as a practice but can be implemented if an employer retrenches an employee during that period.
I welcome exeperts thoughts .
Sughumar.R.K
From United States, Bentonville
Ramachandra has clearly calrified your concerns and I completely agree with him .
In addition to this I want to share my opinion on Gratuity . Employee who has completed 5 years of continous service is eligible for Gratuity . There is a confusion on the eligilbility criteria due to the recent court order citing a employee who completes 4 years and 240 days is eligible . Agreed this is case , not an amendment in the law , unless there is a amendment completion of 4 years and 240 days cannot be effected as a practice but can be implemented if an employer retrenches an employee during that period.
I welcome exeperts thoughts .
Sughumar.R.K
From United States, Bentonville
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Form-F--Notice for Payment of Gratuity Act-Rule 8..pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc