Dear HR Professionals,
Greetings!!!
My husband is working for a US based MNC Software Company located in Hyderabad and will be completing 5 yrs of his service this year with them.
Unfortunately the Company does not pay Gratuity.The workforce here in India(Hyderabad being the only branch in India) will be between
150 to 200 Employees.
I am a Recruitment Professional and i understand that Gratuity Payment is mandatory for any kind of Organization after fulfilling certain norms .
Why is that his Company does not have the norm of paying Gratuity?Please enlighten me more about Gratuity rules.
Thanking you
Purnima
From India, Hyderabad
Greetings!!!
My husband is working for a US based MNC Software Company located in Hyderabad and will be completing 5 yrs of his service this year with them.
Unfortunately the Company does not pay Gratuity.The workforce here in India(Hyderabad being the only branch in India) will be between
150 to 200 Employees.
I am a Recruitment Professional and i understand that Gratuity Payment is mandatory for any kind of Organization after fulfilling certain norms .
Why is that his Company does not have the norm of paying Gratuity?Please enlighten me more about Gratuity rules.
Thanking you
Purnima
From India, Hyderabad
Dear Ms.Purnima
The software company in which your husband is employed is employing about 150 employees.This company is governed by the provisions of the Shops and Establishments Act applicable in your State. The Payment of Gratuity Act is applicable to shops/establishments employing ten or more persons. Therefore, your husband is entitled to get gratuity from his employer at the rates prescribed under the provisions of the Payment of Gratuity Act. provided he satisfies the other conditions. If the employer is refusing to pay gratuity you can file a claim before the Controlling Authority under the Payment of Gratuity Act. If you enquire with the office of the Commissioner of Labour of your State.you will get to know who is the Controlling Authority in the case of your husband.
Regards
From India, Madras
169The software company in which your husband is employed is employing about 150 employees.This company is governed by the provisions of the Shops and Establishments Act applicable in your State. The Payment of Gratuity Act is applicable to shops/establishments employing ten or more persons. Therefore, your husband is entitled to get gratuity from his employer at the rates prescribed under the provisions of the Payment of Gratuity Act. provided he satisfies the other conditions. If the employer is refusing to pay gratuity you can file a claim before the Controlling Authority under the Payment of Gratuity Act. If you enquire with the office of the Commissioner of Labour of your State.you will get to know who is the Controlling Authority in the case of your husband.
Regards
From India, Madras
Thanks for the useful information.
One more information I need is : Should gratuity be deducted from employees salary, as per law. I know mostly companies put it as CTC component and deduct it from employee's salary.
Just want to know , what is according to law.
Regards
Monica
9711899220
From India, Chandigarh
One more information I need is : Should gratuity be deducted from employees salary, as per law. I know mostly companies put it as CTC component and deduct it from employee's salary.
Just want to know , what is according to law.
Regards
Monica
9711899220
From India, Chandigarh
Dear Monica,
As per Payment of Gratuity Act, Your husband is eligible for getting gratuity.
Regarding your second question It depends on so many factors as CTC concept is not there in Indian Statutory Laws.
1. Is your husband signed any document related to not receipt of Gratuity when joined the Company ?
2. Gratuity is not deducted from Employees Salary.
3. As per Law your husband is eligible for Gratuity.
Onthis Occasion, I would like to raise my voice to have Industrial Relations (IR) is Software & BPO Firms.
Plz. share your opinions also.
Thanks & Regards
Narendar Paleti
From India, Hyderabad
As per Payment of Gratuity Act, Your husband is eligible for getting gratuity.
Regarding your second question It depends on so many factors as CTC concept is not there in Indian Statutory Laws.
1. Is your husband signed any document related to not receipt of Gratuity when joined the Company ?
2. Gratuity is not deducted from Employees Salary.
3. As per Law your husband is eligible for Gratuity.
Onthis Occasion, I would like to raise my voice to have Industrial Relations (IR) is Software & BPO Firms.
Plz. share your opinions also.
Thanks & Regards
Narendar Paleti
From India, Hyderabad
Dear Ms.Monica
Gratuity is a gratuitous payment given for long and unblemished service. This has been made as a statutory right subject of course to certain conditions. Therefore gratuity cannot be deducted from the salary of the employee. CTC being the abbreviation for "cost to the company" the employers make gratuity as a component of CTC so as to make the pay packed attractive. Whether gratuity is shows in CTC or not the employer is liable to pay subject to the conditions contained in the Payment of Gratuity Act, in case it is applicable.
Regards
From India, Madras
Gratuity is a gratuitous payment given for long and unblemished service. This has been made as a statutory right subject of course to certain conditions. Therefore gratuity cannot be deducted from the salary of the employee. CTC being the abbreviation for "cost to the company" the employers make gratuity as a component of CTC so as to make the pay packed attractive. Whether gratuity is shows in CTC or not the employer is liable to pay subject to the conditions contained in the Payment of Gratuity Act, in case it is applicable.
Regards
From India, Madras
My Dear Friend,
I will only say that the Company your husband is working for is legally obliged to comply with all applicable laws of the country. Needless to say that your husband is very definitely entitled for payment of Gratuity as and when he becomes eligible for the same as per provisions of the said statute.
Best Wishes,
Vasant Nair
Mob: 09667200654
Landline: 01463-516092
From India, Mumbai
I will only say that the Company your husband is working for is legally obliged to comply with all applicable laws of the country. Needless to say that your husband is very definitely entitled for payment of Gratuity as and when he becomes eligible for the same as per provisions of the said statute.
Best Wishes,
Vasant Nair
Mob: 09667200654
Landline: 01463-516092
From India, Mumbai
Non-payment of gratuity to the eligible employee is a serious offence,for which a complaint may be made to the concerned ALC & Contolling Authority,It depends upon the place where the cause of action took place.Futher details will be available in the Payment of Gratuity Act to be read with the Rules thereof.It cannot be deducted but under certain circumstances laid -down in the Act,it can be forfeited only,subject to issue of a prior notice for the same.
From India, Delhi
From India, Delhi
Dear all,
as we know this act implemented on all those establishment,in which 10 or more workers are working, but the working period of five year continuous service is required so first of all you should clear that is service should be continue,
If the service is continue of five year then you can fill Form-N and submitt to controlling authority.
sorue you will find positive respons .
Regards
Rajbir
HR Sr.Executive (Welfare Officer)
From India, Coimbatore
as we know this act implemented on all those establishment,in which 10 or more workers are working, but the working period of five year continuous service is required so first of all you should clear that is service should be continue,
If the service is continue of five year then you can fill Form-N and submitt to controlling authority.
sorue you will find positive respons .
Regards
Rajbir
HR Sr.Executive (Welfare Officer)
From India, Coimbatore
Dear purnima,
Kindly ask your Husband to check with his company HR whether they applied for Group Gratuity Cash Accumulation Scheme form to LIC.If they initiate the process your husband will get his money within 15 days once they submitted the form.
If they do not have any tie up with LIC - GGCA , employer should pay gratuity amount as per the below calculation:
Basic Salary*15/26*No.of years of services ( more than 4 yrs and 241 days - Gratuity eligibility)
Guide your hubby to write a formal letter to HR in case of delay.
Thanks & regards
Ponlakshmi.K
From India, Madras
Kindly ask your Husband to check with his company HR whether they applied for Group Gratuity Cash Accumulation Scheme form to LIC.If they initiate the process your husband will get his money within 15 days once they submitted the form.
If they do not have any tie up with LIC - GGCA , employer should pay gratuity amount as per the below calculation:
Basic Salary*15/26*No.of years of services ( more than 4 yrs and 241 days - Gratuity eligibility)
Guide your hubby to write a formal letter to HR in case of delay.
Thanks & regards
Ponlakshmi.K
From India, Madras
Dear Ms. Purnima,
I have totally agree with the Suggestive Notes given by our Honurable memebers .
Ask your Husband to file form N to the Company with a copy to the Controlling Authority. Whether it is a foreign company or an Indian company they will have to abide by the Gratuity Rules of the Indian Nation.
Further if your husband has not received any reply from the Company, he can lodge a greivance letter to the Labour Commissioner of your area personally by obtaining acknowledgement
As per Gratuity rules the same has to be settled by the employer/Company within 30 days time with an intimation to the Controlling authority.
Regards.
Ravi.V
From India, Mumbai
I have totally agree with the Suggestive Notes given by our Honurable memebers .
Ask your Husband to file form N to the Company with a copy to the Controlling Authority. Whether it is a foreign company or an Indian company they will have to abide by the Gratuity Rules of the Indian Nation.
Further if your husband has not received any reply from the Company, he can lodge a greivance letter to the Labour Commissioner of your area personally by obtaining acknowledgement
As per Gratuity rules the same has to be settled by the employer/Company within 30 days time with an intimation to the Controlling authority.
Regards.
Ravi.V
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc