Dear Major Ashish,
In my opinion there is no bar as far as the age is concern in case of eligibility of gratuity. He will be entitled to receive gratuity if works continuously for five years with the same employer where this act is applicable.
Regards,
R.N.Khola
From India, Delhi
363In my opinion there is no bar as far as the age is concern in case of eligibility of gratuity. He will be entitled to receive gratuity if works continuously for five years with the same employer where this act is applicable.
Regards,
R.N.Khola
From India, Delhi
Dear Mr AKM, You are right but gratuity ceiling has been increased form 3.5 Lacs to 10 Lacs. Best regards
From India, Jhajjar
From India, Jhajjar
Dear Mr. R N Khola,
Thanks for your reply.
There is still one query, as per section 4A, every non government employer has to insure his gratuity libility by LIC or other such insurer.
Now, LIC does not insure the gratuity libility of people above 58 yrs of age (I dont know wether such practise by insurer is ethically and legally covered).
If insurer is legally covered for such act then may be gratuity coverage is not binding for people above 58 years of age!
Also In case such person dies after serving for some amount of time, will the gratuity payable be calculated on minimum 5 yrs & if the insurer like LIC does not cover such risk, then how can an employer be forced to undertake such risk?
Will be grateful for your views on this.
Thanks & Regards,
Major.Ashish Acharjee
From India, Pune
Thanks for your reply.
There is still one query, as per section 4A, every non government employer has to insure his gratuity libility by LIC or other such insurer.
Now, LIC does not insure the gratuity libility of people above 58 yrs of age (I dont know wether such practise by insurer is ethically and legally covered).
If insurer is legally covered for such act then may be gratuity coverage is not binding for people above 58 years of age!
Also In case such person dies after serving for some amount of time, will the gratuity payable be calculated on minimum 5 yrs & if the insurer like LIC does not cover such risk, then how can an employer be forced to undertake such risk?
Will be grateful for your views on this.
Thanks & Regards,
Major.Ashish Acharjee
From India, Pune
Dear Ashish,
It is made clear that so far it is not necessary to have insurance for gratuity payment as the Govt. have not issued any notification for compulsory insurance under section 4A of this Act. As there is no bar relating to age in getting gratuity & therefore I am giving this opinion that the employee is eligible to have gratuity from the employer if he completes five years of service.
According to section 4 the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Section 4(2): for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.
I do not know much about LIC insurance.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
It is made clear that so far it is not necessary to have insurance for gratuity payment as the Govt. have not issued any notification for compulsory insurance under section 4A of this Act. As there is no bar relating to age in getting gratuity & therefore I am giving this opinion that the employee is eligible to have gratuity from the employer if he completes five years of service.
According to section 4 the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Section 4(2): for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.
I do not know much about LIC insurance.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
Dear Friends,
Under the ID Act an employee is entitled to receive fifteen days wages from his employer for each completed year of service. This is irrespective of the fact whether he is employed by the contractor or through the contractor. Under the law any one who is the real master of the worker is liable to discharge this liability.
However, if an employee irrespective of his status ie contract employee or otherwise serves under the employer or the master for five years or more, he is entitled to receive fifteen days wages for each completed year of service.
But method of calculation of fifteen days wages under the ID Act is just half month's wages and under the Payment of Gratuity Act it is monthly wages divided by twenty six and multiplied by fifteen.
Shimlacharlie
From India, Delhi
Under the ID Act an employee is entitled to receive fifteen days wages from his employer for each completed year of service. This is irrespective of the fact whether he is employed by the contractor or through the contractor. Under the law any one who is the real master of the worker is liable to discharge this liability.
However, if an employee irrespective of his status ie contract employee or otherwise serves under the employer or the master for five years or more, he is entitled to receive fifteen days wages for each completed year of service.
But method of calculation of fifteen days wages under the ID Act is just half month's wages and under the Payment of Gratuity Act it is monthly wages divided by twenty six and multiplied by fifteen.
Shimlacharlie
From India, Delhi
Dear All,
Thanks for your replies, it was very helpful.
Kindly let me know if a new employee more than the age of 58 joins the company, is provision of gratuity mandatory for him / her by the company?
From India, Pune
Thanks for your replies, it was very helpful.
Kindly let me know if a new employee more than the age of 58 joins the company, is provision of gratuity mandatory for him / her by the company?
From India, Pune
Dear Mr Khola,
Thank you letting me know that teachers are cover under amended gratuity law...
I had resigned from my job in 2008 after 20 years of continue service as kindergarten teacher. I've filed a case on the institute and the principal and trustee.
But there is no reply from there side I just keep visiting the court and get another date from past 2 months..
How far you think would go on like this..are there any chances of getting justice..
From India, Mumbai
Thank you letting me know that teachers are cover under amended gratuity law...
I had resigned from my job in 2008 after 20 years of continue service as kindergarten teacher. I've filed a case on the institute and the principal and trustee.
But there is no reply from there side I just keep visiting the court and get another date from past 2 months..
How far you think would go on like this..are there any chances of getting justice..
From India, Mumbai
Hi
Let us take the case of Service industry......, A company called ABC is a service provider and providing its services at XYZ i.e. clients place.Client (XYZ) as per agreement he will sign for some amount/person deployed.
Let us take we have deployed supervisor at clients place and client is paying for us the amount. He may be working at clients place which comes under contract, but he will be working on our rolls. It is our responsibility to show him other opportunity if we loose the existing contrat or send him with one month pay along with bonus and Gratuity. Even it depands on the salary break-up we give at the time of appointment.
Cheers
balu
From India, Hyderabad
Let us take the case of Service industry......, A company called ABC is a service provider and providing its services at XYZ i.e. clients place.Client (XYZ) as per agreement he will sign for some amount/person deployed.
Let us take we have deployed supervisor at clients place and client is paying for us the amount. He may be working at clients place which comes under contract, but he will be working on our rolls. It is our responsibility to show him other opportunity if we loose the existing contrat or send him with one month pay along with bonus and Gratuity. Even it depands on the salary break-up we give at the time of appointment.
Cheers
balu
From India, Hyderabad
Dear Member,
If you have filed the claim case before the Authority under the Payment of Gratuity Act, 1972 then keeping in view principle of natural justice this authority must be giving opportunity to the respondents before proceeding ex-parte. Courts take years to announce the final judgement & therefore one is compelled to have patience.
Regards,
R.N.Khola
From India, Delhi
If you have filed the claim case before the Authority under the Payment of Gratuity Act, 1972 then keeping in view principle of natural justice this authority must be giving opportunity to the respondents before proceeding ex-parte. Courts take years to announce the final judgement & therefore one is compelled to have patience.
Regards,
R.N.Khola
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Online payment of PF mandatory from 1.1.2016.pdf
PAYMENT OF WAGES ACT 2009.doc