Hello Nidhi , this is Kunal Pratap according to payment of gratuity act 1972 the org with the aid of 10 or more employees with aid of + power and org with 20 or more employees the aid of - power is entitled to provide Gratuity after the cont. 5 yrs of svc. the limit of gra. is now 10 lakhs. Further queries are welcome
From India, Pune
From India, Pune
31- Unlike PF or ESI there is no deduction or contribution applicable in case of Gratuity.
- There is no harm, if Gratuity is included in CTC. You can specifically mention in the CTC Sheet that, 'Gratuity will be payable only after completion of 5 years service, as per the provisions of Payment of Gratuity Act.'
From India, Pune
Hi friends!!
I have few questions my self. An an employee engaged on contract basis for 3 years and he continued to work with the company after the completion of the contractual period and the management not renewed his contract but continued to pay him monthly salary. Now he completed almost 8 years continueously on the first contract agreement with enhanced basic salary from time to time.
My questions:
Is he eligible gratuity as per payment of gratuity act?
As the contract was not renewed but the management utilised his services and also gave yearly increments in the basic pay, will he be treated as a regular employee?
Thanks for your guidance.
Radhangapani
From India, Visakhapatnam
I have few questions my self. An an employee engaged on contract basis for 3 years and he continued to work with the company after the completion of the contractual period and the management not renewed his contract but continued to pay him monthly salary. Now he completed almost 8 years continueously on the first contract agreement with enhanced basic salary from time to time.
My questions:
Is he eligible gratuity as per payment of gratuity act?
As the contract was not renewed but the management utilised his services and also gave yearly increments in the basic pay, will he be treated as a regular employee?
Thanks for your guidance.
Radhangapani
From India, Visakhapatnam
Dear Nidhi, Why r u so keen on saving the company’s money by taking away the gratuity of the employee which happens to be his legal right?Be a true HR.
From India, Ahmadabad
From India, Ahmadabad
Hi All,
I Need the following Gratuity info for Tamilnadu:
1. how much amount monthly deducted from employee?
2. how much amount monthly contribution by employer?
3. where the amount to be deposited? concerned office contact?
4. if previously not deducted, old + new can ge deducted from employee?
5.Employees who are working in the managerial or supervisory capacity and drawing wages exceeding Rs.3,500/- (Rupees Three Thousand Five Hundred) only per month are excluded from LWF?
Thanks
R.chandrasekar
From India, Madras
I Need the following Gratuity info for Tamilnadu:
1. how much amount monthly deducted from employee?
2. how much amount monthly contribution by employer?
3. where the amount to be deposited? concerned office contact?
4. if previously not deducted, old + new can ge deducted from employee?
5.Employees who are working in the managerial or supervisory capacity and drawing wages exceeding Rs.3,500/- (Rupees Three Thousand Five Hundred) only per month are excluded from LWF?
Thanks
R.chandrasekar
From India, Madras
Dude,
As per Law, an employee is eligible for Gratuity if he had rendered 5yrs of continous unblemished service for organization. Though it is mentioned in CTC or NOT.
Now-a-days, companies have tie-up with insurance company for payment of Gratuity, so they intend to include in CTC. Once it is included in CTC, the employee is eligible once he resign from service irrespective of service period.
From India, Tiruchchirappalli
As per Law, an employee is eligible for Gratuity if he had rendered 5yrs of continous unblemished service for organization. Though it is mentioned in CTC or NOT.
Now-a-days, companies have tie-up with insurance company for payment of Gratuity, so they intend to include in CTC. Once it is included in CTC, the employee is eligible once he resign from service irrespective of service period.
From India, Tiruchchirappalli
Hi dear Friends!!!
I think it will take some time to respond to my query!! However let me give my views on the point I raised and correct me if I am wrong in my assessment. I would like to get the feed back as it relates to one employee's rights and also help the employers to formulate the guidelines when people are engaged on contractual basis.
Firstly, the employee, after his completion of the contract period should naturally ask for renewal of his contract period in writing before he continue his services with the Company. In case he did not do so but the company also did not issue the same and engage his services, it may be presumed that a mutual understanding between them is there and he now be a part of the company regulars. Here we need to note, the management not only engaged his services, but also gave increments to his basic pay from time to time thus establishing a continueous employer - employee relationship.
So, after 8 years of the service,if for some reason, the employee wish to leave or the employer want to dismiss the employee from services, the employer is bound to pay the gratuity as well as all other benefits other regular employees enjoying irrespetive of the fact that he was originally engaged on contract basis.
Please consider and post your opinions. In fact I want an expert advise if one of you who aslo handel the legal adviser duties also.
Thank you,
Radhangapani
From India, Visakhapatnam
I think it will take some time to respond to my query!! However let me give my views on the point I raised and correct me if I am wrong in my assessment. I would like to get the feed back as it relates to one employee's rights and also help the employers to formulate the guidelines when people are engaged on contractual basis.
Firstly, the employee, after his completion of the contract period should naturally ask for renewal of his contract period in writing before he continue his services with the Company. In case he did not do so but the company also did not issue the same and engage his services, it may be presumed that a mutual understanding between them is there and he now be a part of the company regulars. Here we need to note, the management not only engaged his services, but also gave increments to his basic pay from time to time thus establishing a continueous employer - employee relationship.
So, after 8 years of the service,if for some reason, the employee wish to leave or the employer want to dismiss the employee from services, the employer is bound to pay the gratuity as well as all other benefits other regular employees enjoying irrespetive of the fact that he was originally engaged on contract basis.
Please consider and post your opinions. In fact I want an expert advise if one of you who aslo handel the legal adviser duties also.
Thank you,
Radhangapani
From India, Visakhapatnam
Hi, Nidhi,
Whatever i have idea about the graduity, it is the last month salary drawn by employee devided by 2 and multiplied by the number of year completed by the employee. so when i put this ammount in your formulae then i have not got the same ammount.
plz reply
Best regards,
Shashi
From India, Pune
Whatever i have idea about the graduity, it is the last month salary drawn by employee devided by 2 and multiplied by the number of year completed by the employee. so when i put this ammount in your formulae then i have not got the same ammount.
plz reply
Best regards,
Shashi
From India, Pune
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc