gartuity rules
2 months ago
I resigned from my previous company in Dec 2023 after completing the 6 years and 10 months in the company. The company is 8 years old and implement gratuity in April 2023. my question is will i receive gratuity for 6 years 10 months or from the time company implemented gratuity that from April to December ?
A.Dear Sir,
4years 240 days is enough for claiming gratuity.
"As per Madras High Court judgement in a case of Mettur Beardsell Limited [represented by its Personal Manager], Madras v/s Regional Labour Commissioner [Central Authority under the Payment of Gratuity Act, 1972], Madras, it has been stated that if an employee has rendered continuous service of 240 days in the fifth year of service then for the purpose of calculation of gratuity, it must be considered as if he has completed FIVE years of continuous service."
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A.Dear Client,
The demand for social security and justice led to the enactment of the Payment of Gratuity Act, 1972, imposing a statutory obligation on employers to pay gratuity to employees upon the cessation of employment, excluding cases of disciplinary action. Applicable to organizations with 10 or more employees in the past 12 months, the Act mandates gratuity payment for employees with continuous service of five years or more, as per Section 4(1). Section 4(2) outlines the prescribed rates for gratuity, considering completed years of service or part thereof over 6 months. Section 2A defines continuous service, including uninterrupted periods despite accidents, sickness, leave, and other factors.
If you have rendered uninterrupted service for over five years in an establishment covered by the Payment of Gratuity Act, you are entitled to gratuity for 6 years and 10 months. In case of denial by the employer, you can apply to the Controlling Authority, often the Assistant Labour Commissioner, within 90 days of employment termination. All Assistant Labour Commissioners and Labour Officers are designated as Controlling Authorities, with Deputy Labour Commissioners serving as Appellate Authorities under the Act.
The demand for social security and justice led to the enactment of the Payment of Gratuity Act, 1972, imposing a statutory obligation on employers to pay gratuity to employees upon the cessation of employment, excluding cases of disciplinary action. Applicable to organizations with 10 or more employees in the past 12 months, the Act mandates gratuity payment for employees with continuous service of five years or more, as per Section 4(1). Section 4(2) outlines the prescribed rates for gratuity, considering completed years of service or part thereof over 6 months. Section 2A defines continuous service, including uninterrupted periods despite accidents, sickness, leave, and other factors.
If you have rendered uninterrupted service for over five years in an establishment covered by the Payment of Gratuity Act, you are entitled to gratuity for 6 years and 10 months. In case of denial by the employer, you can apply to the Controlling Authority, often the Assistant Labour Commissioner, within 90 days of employment termination. All Assistant Labour Commissioners and Labour Officers are designated as Controlling Authorities, with Deputy Labour Commissioners serving as Appellate Authorities under the Act.
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A.Dear Client,
Demands for social security and social justice made it necessary to provide for payment of gratuity. It is a lump sum amount paid by the employer to the employee as a form of appreciation for their long service and contribution to the company. On the enactment of the Payment of Gratuity Act, 1972 a statutory liability was cast on the employer to pay gratuity to its employee on cessation of his or her employment irrespective of the reason other than disciplinary action as provided under the Act. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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 over 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 view of the above proposition of law, when you rendered uninterrupted and continuous service for more than five years in an establishment. under the Payment of Gratuity Act, 1972, you are eligible for payment of gratuity for 6 years and 10 months by your employer once the organization comes under the purview of the Act and you were in the roll of the Company when the Act was implemented. All the Assistant Labour Commissioners and Labour Officers in the Labour Department have been appointed Controlling Authority and all the Deputy Labour Commissioners have been appointed Appellate Authority under the Act. If the employer denies payment of Gratuity, then apply to the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner is concerned with claiming gratuity from the employer within a period of 90 days from the date of severance of employment. Reach out to an Advocate for guidance and steps ASAP.
Demands for social security and social justice made it necessary to provide for payment of gratuity. It is a lump sum amount paid by the employer to the employee as a form of appreciation for their long service and contribution to the company. On the enactment of the Payment of Gratuity Act, 1972 a statutory liability was cast on the employer to pay gratuity to its employee on cessation of his or her employment irrespective of the reason other than disciplinary action as provided under the Act. Gratuity is mandatory for organizations with 10 or more employees in the past 12 months once the Act applies to an organization. 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 over 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 view of the above proposition of law, when you rendered uninterrupted and continuous service for more than five years in an establishment. under the Payment of Gratuity Act, 1972, you are eligible for payment of gratuity for 6 years and 10 months by your employer once the organization comes under the purview of the Act and you were in the roll of the Company when the Act was implemented. All the Assistant Labour Commissioners and Labour Officers in the Labour Department have been appointed Controlling Authority and all the Deputy Labour Commissioners have been appointed Appellate Authority under the Act. If the employer denies payment of Gratuity, then apply to the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner is concerned with claiming gratuity from the employer within a period of 90 days from the date of severance of employment. Reach out to an Advocate for guidance and steps ASAP.
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