May I know more Inoformation or link to any govt official site which speaks about Service Compensation and Gratuity payments are statutory payments which is as per the State Act?
As per my knowledge, cab you confirm the below info is correct and appropriate?
Employees who are in AP state will be paid Service compensation if their service is more than 1 year but less than 4 years and 10 months.
Employees whose service is more than 4 years 10 months, Gratuity act is enabled and not service compensation.
While service is calculated, its from date of joining to date of leaving and not the period you were at AP.
If and only if an employee’s working base location is Andhra Pradesh and if the employee is quitting from Andhra Pradesh, employee will be eligible for service compensation.
Service Compensation calculation formula is given below:
Gross(except for the additional allowance) x 15/30 x number of years served.
what if there is no policy in my company?
1As per my knowledge, cab you confirm the below info is correct and appropriate?
Employees who are in AP state will be paid Service compensation if their service is more than 1 year but less than 4 years and 10 months.
Employees whose service is more than 4 years 10 months, Gratuity act is enabled and not service compensation.
While service is calculated, its from date of joining to date of leaving and not the period you were at AP.
If and only if an employee’s working base location is Andhra Pradesh and if the employee is quitting from Andhra Pradesh, employee will be eligible for service compensation.
Service Compensation calculation formula is given below:
Gross(except for the additional allowance) x 15/30 x number of years served.
what if there is no policy in my company?
We are a small export-house manufacturing Leather Handbags and Artificial Jewellery in New Delhi
Currently we do not have much orders so we are planning to layoff certain employees.
My queries are
1, If we layoff employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more
2. If any employee is employed for 4 years and 4 months, what do we have to pay them? : Service Compensation or Gratuity or both
3. If any employee is employed for less than a year, do we have to pay Service Compensation ?
4. Please can we have a service compensation calculation or do we have to follow the same calculation as Gratuity
5. Can we have documents supporting rules, laws and orders passed to support the decision.
Thanks
From India, New Delhi
Currently we do not have much orders so we are planning to layoff certain employees.
My queries are
1, If we layoff employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more
2. If any employee is employed for 4 years and 4 months, what do we have to pay them? : Service Compensation or Gratuity or both
3. If any employee is employed for less than a year, do we have to pay Service Compensation ?
4. Please can we have a service compensation calculation or do we have to follow the same calculation as Gratuity
5. Can we have documents supporting rules, laws and orders passed to support the decision.
Thanks
From India, New Delhi
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Compensation policy.doc
COMPENSATION POLICY(Bilingua l)_v 1.1.pdf