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GRATUITY
6 months ago
Past I worked in school for 6 years. now I applied for a gratuity and they said we don't have any rules to give a gratuity. is this any rule that the school does not come under the Gratuity Act? or what should I do to get my gratuity?
A.Dear Client,
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. Organizations with a workforce of 10 employees on a single day in the preceding 12 months are liable to pay gratuity. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. In Payment for Gratuity (Amendment) Bill 2007, the Parliament sought to bring private school teachers within the purview of the Act. The Act was further amended in 2009 to extend coverage to the payment of gratuity to private school teachers. The Supreme Court upheld the 2009 amendment to the Payment of Gratuity Act, 1972 and ruled that the benefit of gratuity would extend to teachers, including those employed in private schools. The Chhattisgarh High Court has held that gratuity is a property within the meaning of Article 300-A of the Constitution of India and as such, it is a constitutional right that cannot be taken away except by the authority of law. Arithmetically, Gratuity amount = 15/26 X Completed years of Service X Salary p.m. Here, Salary p.m. denotes the last drawn salary along with your Dearness Allowance. The payment of gratuity must be made within 30 days from the date of receipt of the application from the ex-employee. The Government vide notification no. 1420(E) dated 29th March, 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs. 10 Lakh to. 20 Lakh with effect from 29th March 2018. In view of the above proposition of law, and averments of different Courts, when you rendered uninterrupted and continuous service for 6 years in an establishment, you are eligible for payment of gratuity from your employer. In case the employer/school authority denies payment of gratuity, reach out to the office of the concerned Labour Commissioner who is the Controlling Authority under the Payment of Gratuity Act, 1972 for filing an application claiming gratuity from the employer to resolve your grievance.
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. Organizations with a workforce of 10 employees on a single day in the preceding 12 months are liable to pay gratuity. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. In Payment for Gratuity (Amendment) Bill 2007, the Parliament sought to bring private school teachers within the purview of the Act. The Act was further amended in 2009 to extend coverage to the payment of gratuity to private school teachers. The Supreme Court upheld the 2009 amendment to the Payment of Gratuity Act, 1972 and ruled that the benefit of gratuity would extend to teachers, including those employed in private schools. The Chhattisgarh High Court has held that gratuity is a property within the meaning of Article 300-A of the Constitution of India and as such, it is a constitutional right that cannot be taken away except by the authority of law. Arithmetically, Gratuity amount = 15/26 X Completed years of Service X Salary p.m. Here, Salary p.m. denotes the last drawn salary along with your Dearness Allowance. The payment of gratuity must be made within 30 days from the date of receipt of the application from the ex-employee. The Government vide notification no. 1420(E) dated 29th March, 2018 has enhanced the gratuity ceiling under the Payment of Gratuity Act, 1972 from Rs. 10 Lakh to. 20 Lakh with effect from 29th March 2018. In view of the above proposition of law, and averments of different Courts, when you rendered uninterrupted and continuous service for 6 years in an establishment, you are eligible for payment of gratuity from your employer. In case the employer/school authority denies payment of gratuity, reach out to the office of the concerned Labour Commissioner who is the Controlling Authority under the Payment of Gratuity Act, 1972 for filing an application claiming gratuity from the employer to resolve your grievance.
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A.Dear Client
The Payment of Gratuity Act, 1972, is applicable to establishments employing 10 or more persons. Schools, both private and public, usually fall under the purview of this act. According to the act, an employee is eligible for gratuity if they have completed at least five years of continuous service in the organization. If the school management is refusing to provide gratuity without a valid reason, you have the option to take legal action. You can file a complaint with the Controlling Authority under the Payment of Gratuity Act in your respective state.
The Payment of Gratuity Act, 1972, is applicable to establishments employing 10 or more persons. Schools, both private and public, usually fall under the purview of this act. According to the act, an employee is eligible for gratuity if they have completed at least five years of continuous service in the organization. If the school management is refusing to provide gratuity without a valid reason, you have the option to take legal action. You can file a complaint with the Controlling Authority under the Payment of Gratuity Act in your respective state.
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