I working form Ministry as a Contract Basis under the Contractor, Previous Contractor under worked by me 4 years 6 months, 1 years worked under the current Contractor, contractor change time to time but i am working regularly in the same Ministry and same designation, i have completed 5 years 9 months. can i claim gratuity, plz help me sir
From India, Delhi
From India, Delhi
Dear Rahul Modi ji,
Pratik has already got his gratuity. Many learned members have given guidence to him up till now, as what to do. What "guidense" you will give to him now?
I am aware that this is an open forum and any one can write any thing in this forum.
Of late, I started feeling that member like me should stop writing in this forum and prevent himself from degrading.
From India, Mumbai
2555Pratik has already got his gratuity. Many learned members have given guidence to him up till now, as what to do. What "guidense" you will give to him now?
I am aware that this is an open forum and any one can write any thing in this forum.
Of late, I started feeling that member like me should stop writing in this forum and prevent himself from degrading.
From India, Mumbai
Dear Rahul Modi ji,
Sorry to ask you direct question.
How you are indifference in reply on same quesion in two saperate threads.
This particular thread, you are saying gratuity is payable even for service less than 5 years. In another thread you said, the employee must complet 5 years.
link https://www.citehr.com/535453-gratui...st2249190.html
My advise to you, please read the comments of other learned members and appreciate their views or else, keep yourself mum. If you have different view of your own, please put it logically instead of asking the member to contact you on phone.
From India, Mumbai
Sorry to ask you direct question.
How you are indifference in reply on same quesion in two saperate threads.
This particular thread, you are saying gratuity is payable even for service less than 5 years. In another thread you said, the employee must complet 5 years.
link https://www.citehr.com/535453-gratui...st2249190.html
My advise to you, please read the comments of other learned members and appreciate their views or else, keep yourself mum. If you have different view of your own, please put it logically instead of asking the member to contact you on phone.
From India, Mumbai
Dear Jagat,
Sorry to address your query a little late as i was away from my Laptop for sometime. Now coming to your query. In order to look into this we have to understand the history of it. This confusion started by a judgment of MP high court of Montage-Enterprises-Pvt.-Ltd-versus-Employees-Provident-Fund wherein the Honb’le High Court dismissing the petition and stating that the allowances are part of basic wages as defined under the definition of wages given under the act. I guess PF department on the basis of that judgment issued a Circular dated 20 November 2012. On page 4 of that circular the basic wages was elaborated under the head Splitting of Wages. In it, it was told that and allowance uniformly paid to the employees shall be construed as basic wages and the employer and employee have to contribute on the amount so arrived by adding all those allowances to the basic wage. Business world got stunned by this as many companies were already splitting their wages structure and keeping the basic wages low to keep their contribution down and due to this circular a big whole was about to open into their pockets as in most of the cases their basics were not even half of the actual salaries. Also as 12 percent had to be contributed by employees their net take home was to take the hit too.
This Circular was kept in abeyance by EPFO itself as the companies moved to court against various circulars. In one such case i. e. G4S Securities judgment of Punjab and Haryana High Court, it was kept in abeyance through circular dated 2 December 2011 as Punjab and Haryana High Court differing from the judgment of MP High Court gave decision in favour of Employer. All such matters moved to Supreme Court and the Supreme Court while passing an interim order dated 12 April 2013 in Surya Roshni Case directed that
“We,however, add that the Provident Fund Commissioner may proceed to make the assessment but no demand will be raised thereon.”
So the authorities may make an assessment under proceedings under section 7A, however they cannot raise any demands. The order is also attached for your reference. To my knowledge the position has not been changed yet so you may ask the authorities to issue an order to if they want you to remit contribution as they want. That is not possible as that will be direct contempt of the Supreme Court. So my opinion keep remitting the way you use to pay the dues till the disposal of the case in Supreme Court. However make a reserve as if the PF authorities won the case you not get burdened if that applied with retrospective effect. Hope you got your answer.
From India, New Delhi
Sorry to address your query a little late as i was away from my Laptop for sometime. Now coming to your query. In order to look into this we have to understand the history of it. This confusion started by a judgment of MP high court of Montage-Enterprises-Pvt.-Ltd-versus-Employees-Provident-Fund wherein the Honb’le High Court dismissing the petition and stating that the allowances are part of basic wages as defined under the definition of wages given under the act. I guess PF department on the basis of that judgment issued a Circular dated 20 November 2012. On page 4 of that circular the basic wages was elaborated under the head Splitting of Wages. In it, it was told that and allowance uniformly paid to the employees shall be construed as basic wages and the employer and employee have to contribute on the amount so arrived by adding all those allowances to the basic wage. Business world got stunned by this as many companies were already splitting their wages structure and keeping the basic wages low to keep their contribution down and due to this circular a big whole was about to open into their pockets as in most of the cases their basics were not even half of the actual salaries. Also as 12 percent had to be contributed by employees their net take home was to take the hit too.
This Circular was kept in abeyance by EPFO itself as the companies moved to court against various circulars. In one such case i. e. G4S Securities judgment of Punjab and Haryana High Court, it was kept in abeyance through circular dated 2 December 2011 as Punjab and Haryana High Court differing from the judgment of MP High Court gave decision in favour of Employer. All such matters moved to Supreme Court and the Supreme Court while passing an interim order dated 12 April 2013 in Surya Roshni Case directed that
“We,however, add that the Provident Fund Commissioner may proceed to make the assessment but no demand will be raised thereon.”
So the authorities may make an assessment under proceedings under section 7A, however they cannot raise any demands. The order is also attached for your reference. To my knowledge the position has not been changed yet so you may ask the authorities to issue an order to if they want you to remit contribution as they want. That is not possible as that will be direct contempt of the Supreme Court. So my opinion keep remitting the way you use to pay the dues till the disposal of the case in Supreme Court. However make a reserve as if the PF authorities won the case you not get burdened if that applied with retrospective effect. Hope you got your answer.
From India, New Delhi
I agree DRBIJOY, One has to complete 5 yrs. of service without wjhich the person is not eligible for Gratuity. Well said and explained DRBIJOY.
From India, Gurgaon
From India, Gurgaon
Mr.Pratik as per the Graduity Act for entitlement of graduity minimum 4.6 years of service is countable....
From India, Solapur
From India, Solapur
Dear Mr.Kamal Kant Tyagi and Mr. Jagat Kumar
Thank you for the detailed discussion on this issue. Till now we are contributing towards Provident Fund on Basic wages and DA. But due to recent developments, I was in confusion on the component of wages that attract PF contribution. I am happy, if I get some more information on this issue.
From India, Bangalore
Thank you for the detailed discussion on this issue. Till now we are contributing towards Provident Fund on Basic wages and DA. But due to recent developments, I was in confusion on the component of wages that attract PF contribution. I am happy, if I get some more information on this issue.
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
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