Sir,
As per Rule 18 (a) (4) (ii) of Karnataka Co-operative Rules 1960 "The maximum amount (of gratuity) payable to any employee shall not exceed fifteen months's pay under any circumstances."
Does it mean that as per KSC rules maximum amount of gratuity payable is unlimited subject to the condition of 15 months pay. i.e. ceiling limit of Rs.3.5 lakhs as per Gratuity Act 1972 does not applicable to Co-operative society employees.
From India, Bangalore
1As per Rule 18 (a) (4) (ii) of Karnataka Co-operative Rules 1960 "The maximum amount (of gratuity) payable to any employee shall not exceed fifteen months's pay under any circumstances."
Does it mean that as per KSC rules maximum amount of gratuity payable is unlimited subject to the condition of 15 months pay. i.e. ceiling limit of Rs.3.5 lakhs as per Gratuity Act 1972 does not applicable to Co-operative society employees.
From India, Bangalore
The Payment of Gratuity Act 1972 is a Central Act.
The Karnataka Cooperative Societies Act is a State Act.
Provisons of State Act cannot override the provisions of Central Act. (unless otherwise enacted)
Hence any establishment where 10 or more employees are employed, is governed by the Payment of Gratuity Act 1972.
Those cooperative societies which are coming under the Payment of Gratuity Act 1972 ( i.e. less than 10 employees) may pay as per the KCS Act and its Rules.
The Payment of Gratuity Act 1972 recommends only better gratuity schemes and not less.
KCS Kutty, Chennai
From India, Madras
The Karnataka Cooperative Societies Act is a State Act.
Provisons of State Act cannot override the provisions of Central Act. (unless otherwise enacted)
Hence any establishment where 10 or more employees are employed, is governed by the Payment of Gratuity Act 1972.
Those cooperative societies which are coming under the Payment of Gratuity Act 1972 ( i.e. less than 10 employees) may pay as per the KCS Act and its Rules.
The Payment of Gratuity Act 1972 recommends only better gratuity schemes and not less.
KCS Kutty, Chennai
From India, Madras
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc