One Mr. A was appointed in the services of a PSU as a permanent employee,during his course of employment he was demoted as Badli workmen.
After service of 13 years he was terminated from his services for remaining absent from his duties after C/s and due inquiry.my question is whether he is entitled for payment of gratuity or not?
From India, Mumbai
After service of 13 years he was terminated from his services for remaining absent from his duties after C/s and due inquiry.my question is whether he is entitled for payment of gratuity or not?
From India, Mumbai
363Dear Kamlesh,
Gratuity under The Payment of Gratuity Act, 1972 can only be wholly or partially deducted in accordance with section 4(6) but termination on account of absence does not seems to be fall under this category but before finalizing the matter you may also go through this section.
Regards,
R.N.Khola
From India, Delhi
First of all demotion of employee from a confirmed post to Badli itself could be challenged as the word 'badli' stands for a vacancy caused due to absence of a regular employee due to leave.
There may be two kinds of termination. If he was "DISCHARGED" from service (certainly after an enquiry) he is suppose to get gratuity and other benefits applicable whereas if he was "DISMISSED" from service, he is not suppose to get any gratuity and other benefits. Normally, for absence from work, no worker is dismissed but only discharged from service. As such, he is eligible for gratuity.
For calculating gratuity his salary at the time of discharge/ leaving and the length of service only are considered. Therefore, it is immaterial whether he was demoted once. But he will get gratuity on the basis of his last drawn salary (as badli worker) but his date of joining the service, whether as probationer, confirmed employee or other, shall be taken to decide his eligible years of service.
Regards,
Madhu.T.K
From India, Kannur
There may be two kinds of termination. If he was "DISCHARGED" from service (certainly after an enquiry) he is suppose to get gratuity and other benefits applicable whereas if he was "DISMISSED" from service, he is not suppose to get any gratuity and other benefits. Normally, for absence from work, no worker is dismissed but only discharged from service. As such, he is eligible for gratuity.
For calculating gratuity his salary at the time of discharge/ leaving and the length of service only are considered. Therefore, it is immaterial whether he was demoted once. But he will get gratuity on the basis of his last drawn salary (as badli worker) but his date of joining the service, whether as probationer, confirmed employee or other, shall be taken to decide his eligible years of service.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu
Your replies as always been crisp and sharp
I need a clarification , which I posted in this site too couple of times , but no sharp answer so far
What is the difference between
Termination
Discharge
Dismissal and what are the benefits deprived from the employees on this counts, your earlier reply will be much appreciated
Regards
R Sudhaakar
From India, Madras
Your replies as always been crisp and sharp
I need a clarification , which I posted in this site too couple of times , but no sharp answer so far
What is the difference between
Termination
Discharge
Dismissal and what are the benefits deprived from the employees on this counts, your earlier reply will be much appreciated
Regards
R Sudhaakar
From India, Madras
These three terms denote one and the same, ie, cessation of employment. But the word termination and discharge may be similar in many respect and may be used symultaneously also. An employee may be terminated after his period of contract is over. An employee may be terminated after giving him notice or paying him salary in lieu following the provisions of the ID Act. Here it is more or less retrenchment.
The term discharge is used when service of an employee is terminated for some negligence or misconduct and after holding an enquiry. Where the misconduct is of very severe nature and no punishment lesser than dismissal is awarded, the employee is dismissed from service. A dismissed employee will not be eligible to get any benefits like gratuity, superannuation benefits from the company. Before awarding dismissal a process of domestic enquiry should have been completed.
Regards,
Madhu.T.K
From India, Kannur
The term discharge is used when service of an employee is terminated for some negligence or misconduct and after holding an enquiry. Where the misconduct is of very severe nature and no punishment lesser than dismissal is awarded, the employee is dismissed from service. A dismissed employee will not be eligible to get any benefits like gratuity, superannuation benefits from the company. Before awarding dismissal a process of domestic enquiry should have been completed.
Regards,
Madhu.T.K
From India, Kannur
Dear Sir
I require your expertise on thse
when you employ persons less than Rs 10000 and you keep their basic less than Rs 6500. IS it necessary to cover them under ESI & PF
Because we do not want to enter in to legal battle with PF authorities, my consultant say no need to cover when u take tham on consolidated salary, but my view is that they need to be covered, what is your opinon, when a consolidated employee employed under Rs 10000 per month
Whether the ESI And PF applicable are not
Regards
R Sudhakar
From India, Madras
I require your expertise on thse
when you employ persons less than Rs 10000 and you keep their basic less than Rs 6500. IS it necessary to cover them under ESI & PF
Because we do not want to enter in to legal battle with PF authorities, my consultant say no need to cover when u take tham on consolidated salary, but my view is that they need to be covered, what is your opinon, when a consolidated employee employed under Rs 10000 per month
Whether the ESI And PF applicable are not
Regards
R Sudhakar
From India, Madras
Dear Mr. Sudhakar,
If the basic is less than 6500 then employee has to be covered under PF act
If the wages ( under ESI act ) less than or equal to Rs10000 then they have to be covered under ESI.
If on muster/paper , basic/ gross wages less then reuqisite amount prescribed by the above discussed Act then consolidated salary point will be futile to discuss.
From India, Pune
If the basic is less than 6500 then employee has to be covered under PF act
If the wages ( under ESI act ) less than or equal to Rs10000 then they have to be covered under ESI.
If on muster/paper , basic/ gross wages less then reuqisite amount prescribed by the above discussed Act then consolidated salary point will be futile to discuss.
From India, Pune
If the basic salary is less than Rs 6500, any way he will be covered both by EPF and ESI whereas if we fix consolidated salary of Rs 10000 (at the time an employee joins), then he will be excluded from PF but will be covered by ESI. For ESI exemption his salary should be at least Rs10001.
Now just to avoid EPF if you fix salary at Rs 10000 or Rs 10001 to avoid ESI also, suppose if by notification the government revises the salary limit for coverage to Rs 12000 or something higher than Rs 10000, you will have to give coverage then. Again, if you fix salary (consolidated) Rs 10000, then his leave encashment and other entitlement in case of lay off, retrenchment and even gratuity will be calculated on this consolidated amount only. We can not put a full stop on Bonus eligibility which may also be raised at any time. Therefore, I feel it is better to go along with such social security measures.
Regards,
Madhu.T.K
From India, Kannur
Now just to avoid EPF if you fix salary at Rs 10000 or Rs 10001 to avoid ESI also, suppose if by notification the government revises the salary limit for coverage to Rs 12000 or something higher than Rs 10000, you will have to give coverage then. Again, if you fix salary (consolidated) Rs 10000, then his leave encashment and other entitlement in case of lay off, retrenchment and even gratuity will be calculated on this consolidated amount only. We can not put a full stop on Bonus eligibility which may also be raised at any time. Therefore, I feel it is better to go along with such social security measures.
Regards,
Madhu.T.K
From India, Kannur
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc