I work for the Ministry on a Contract Basis under the Contractor. The Previous Contractor I worked under for 4 years and 6 months, and I have worked 1 year under the current Contractor. Contractors change from time to time, but I have been working regularly in the same Ministry and in the same designation. I have completed a total of 5 years and 9 months. Can I claim gratuity? Please help me, sir.
From India, Delhi
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1From India, Delhi
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Dear Rahul Modi ji,
Pratik has already received his gratuity. Many knowledgeable members have provided guidance to him up until now on what to do. What "guidance" will you offer him now?
I understand that this is an open forum, and anyone can write anything in this space.
Lately, I have been feeling that members like myself should refrain from contributing to this forum to avoid any degradation.
Thank you.
From India, Mumbai
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Pratik has already received his gratuity. Many knowledgeable members have provided guidance to him up until now on what to do. What "guidance" will you offer him now?
I understand that this is an open forum, and anyone can write anything in this space.
Lately, I have been feeling that members like myself should refrain from contributing to this forum to avoid any degradation.
Thank you.
From India, Mumbai
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Dear Rahul Modi ji,
I apologize for asking you a direct question. I noticed some inconsistency in your replies to the same question in two separate threads. In this particular thread, you mentioned that gratuity is payable even for service of less than 5 years. However, in another thread, you stated that the employee must complete 5 years of service.
Link: https://www.citehr.com/535453-gratui...st2249190.html
I would advise you to read the comments of other knowledgeable members and acknowledge their perspectives. Alternatively, it would be better to refrain from commenting if you do not agree. If you have a different viewpoint, please present it logically instead of requesting members to contact you via phone.
Thank you.
From India, Mumbai
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I apologize for asking you a direct question. I noticed some inconsistency in your replies to the same question in two separate threads. In this particular thread, you mentioned that gratuity is payable even for service of less than 5 years. However, in another thread, you stated that the employee must complete 5 years of service.
Link: https://www.citehr.com/535453-gratui...st2249190.html
I would advise you to read the comments of other knowledgeable members and acknowledge their perspectives. Alternatively, it would be better to refrain from commenting if you do not agree. If you have a different viewpoint, please present it logically instead of requesting members to contact you via phone.
Thank you.
From India, Mumbai
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Dear Jagat,
Sorry to address your query a little late as i was away from my Laptop for sometime. Now coming to your query. In order to look into this we have to understand the history of it. This confusion started by a judgment of MP high court of Montage-Enterprises-Pvt.-Ltd-versus-Employees-Provident-Fund wherein the Honb’le High Court dismissing the petition and stating that the allowances are part of basic wages as defined under the definition of wages given under the act. I guess PF department on the basis of that judgment issued a Circular dated 20 November 2012. On page 4 of that circular the basic wages was elaborated under the head Splitting of Wages. In it, it was told that and allowance uniformly paid to the employees shall be construed as basic wages and the employer and employee have to contribute on the amount so arrived by adding all those allowances to the basic wage. Business world got stunned by this as many companies were already splitting their wages structure and keeping the basic wages low to keep their contribution down and due to this circular a big whole was about to open into their pockets as in most of the cases their basics were not even half of the actual salaries. Also as 12 percent had to be contributed by employees their net take home was to take the hit too.
This Circular was kept in abeyance by EPFO itself as the companies moved to court against various circulars. In one such case i. e. G4S Securities judgment of Punjab and Haryana High Court, it was kept in abeyance through circular dated 2 December 2011 as Punjab and Haryana High Court differing from the judgment of MP High Court gave decision in favour of Employer. All such matters moved to Supreme Court and the Supreme Court while passing an interim order dated 12 April 2013 in Surya Roshni Case directed that
“We,however, add that the Provident Fund Commissioner may proceed to make the assessment but no demand will be raised thereon.”
So the authorities may make an assessment under proceedings under section 7A, however they cannot raise any demands. The order is also attached for your reference. To my knowledge the position has not been changed yet so you may ask the authorities to issue an order to if they want you to remit contribution as they want. That is not possible as that will be direct contempt of the Supreme Court. So my opinion keep remitting the way you use to pay the dues till the disposal of the case in Supreme Court. However make a reserve as if the PF authorities won the case you not get burdened if that applied with retrospective effect. Hope you got your answer.
From India, New Delhi
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Sorry to address your query a little late as i was away from my Laptop for sometime. Now coming to your query. In order to look into this we have to understand the history of it. This confusion started by a judgment of MP high court of Montage-Enterprises-Pvt.-Ltd-versus-Employees-Provident-Fund wherein the Honb’le High Court dismissing the petition and stating that the allowances are part of basic wages as defined under the definition of wages given under the act. I guess PF department on the basis of that judgment issued a Circular dated 20 November 2012. On page 4 of that circular the basic wages was elaborated under the head Splitting of Wages. In it, it was told that and allowance uniformly paid to the employees shall be construed as basic wages and the employer and employee have to contribute on the amount so arrived by adding all those allowances to the basic wage. Business world got stunned by this as many companies were already splitting their wages structure and keeping the basic wages low to keep their contribution down and due to this circular a big whole was about to open into their pockets as in most of the cases their basics were not even half of the actual salaries. Also as 12 percent had to be contributed by employees their net take home was to take the hit too.
This Circular was kept in abeyance by EPFO itself as the companies moved to court against various circulars. In one such case i. e. G4S Securities judgment of Punjab and Haryana High Court, it was kept in abeyance through circular dated 2 December 2011 as Punjab and Haryana High Court differing from the judgment of MP High Court gave decision in favour of Employer. All such matters moved to Supreme Court and the Supreme Court while passing an interim order dated 12 April 2013 in Surya Roshni Case directed that
“We,however, add that the Provident Fund Commissioner may proceed to make the assessment but no demand will be raised thereon.”
So the authorities may make an assessment under proceedings under section 7A, however they cannot raise any demands. The order is also attached for your reference. To my knowledge the position has not been changed yet so you may ask the authorities to issue an order to if they want you to remit contribution as they want. That is not possible as that will be direct contempt of the Supreme Court. So my opinion keep remitting the way you use to pay the dues till the disposal of the case in Supreme Court. However make a reserve as if the PF authorities won the case you not get burdened if that applied with retrospective effect. Hope you got your answer.
From India, New Delhi
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I agree DRBIJOY, One has to complete 5 yrs. of service without wjhich the person is not eligible for Gratuity. Well said and explained DRBIJOY.
From India, Gurgaon
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From India, Gurgaon
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Mr.Pratik as per the Graduity Act for entitlement of graduity minimum 4.6 years of service is countable....
From India, Solapur
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From India, Solapur
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Dear Mr. Kamal Kant Tyagi and Mr. Jagat Kumar,
Thank you for the detailed discussion on this issue. Up until now, we have been contributing towards the Provident Fund based on Basic wages and DA. However, due to recent developments, I have been confused about the components of wages that attract PF contributions. I would greatly appreciate it if I could receive further information on this matter.
Thank you.
From India, Bangalore
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Thank you for the detailed discussion on this issue. Up until now, we have been contributing towards the Provident Fund based on Basic wages and DA. However, due to recent developments, I have been confused about the components of wages that attract PF contributions. I would greatly appreciate it if I could receive further information on this matter.
Thank you.
From India, Bangalore
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