Dear All,
I work for an IT company ( SME Level ). and I am the only employee who has completed 6 years of service.
One day i was having a policy discussion with my HR Head and I suggested him to start a trust or some saving for gratuity compensation for employees. But he denied saying we dont have to pay gratuity to employees and that we are not covered under it as gratuity is payable only by the companies coming under Factories act.
I would like to know is it true?, what is the eligibility criteria for company coverd under shop n establishment act?
Thanks & regards
Supriya
From India, Mumbai
14I work for an IT company ( SME Level ). and I am the only employee who has completed 6 years of service.
One day i was having a policy discussion with my HR Head and I suggested him to start a trust or some saving for gratuity compensation for employees. But he denied saying we dont have to pay gratuity to employees and that we are not covered under it as gratuity is payable only by the companies coming under Factories act.
I would like to know is it true?, what is the eligibility criteria for company coverd under shop n establishment act?
Thanks & regards
Supriya
From India, Mumbai
Dear Supriya
If your company is having more than 10 empoyees than gratuity act is applicable to your company.it does not have any relation to factories act or shop and establishment act.Being IT copany you are covered under shop act.please ask your HR to read the Gratuity act carefully.it is applicable to IT industries
From India, Delhi
If your company is having more than 10 empoyees than gratuity act is applicable to your company.it does not have any relation to factories act or shop and establishment act.Being IT copany you are covered under shop act.please ask your HR to read the Gratuity act carefully.it is applicable to IT industries
From India, Delhi
Dear J S Malik Sir,
Thank you very much for your reply. I will be completing 6 years in june-14 in my current company. My company does not have any savings or account to pay Gratuity to the employees.
In case i leave this company can i get gratuity?
If they deny what steps i can take?
Awaiting for your prompt reply.
Thanks & Regards
Supriya
From India, Mumbai
Thank you very much for your reply. I will be completing 6 years in june-14 in my current company. My company does not have any savings or account to pay Gratuity to the employees.
In case i leave this company can i get gratuity?
If they deny what steps i can take?
Awaiting for your prompt reply.
Thanks & Regards
Supriya
From India, Mumbai
Dear Supriya,
I would like you to read the preamble of the Payment of Gratuity Act,1972. It clearly states that the Act provides a scheme for the payment of gratuity to employees engaged in factories,mines,oil-fields,plantations,ports,railway companies,shops or other establishments. Sec1(3)(c) of the Act empowers the Central Govt to extend its application to any other establishment by means of notification.Therefoe as rightly said by Mr.Malik the Act is applicable to your company and all the employees, irrespective of their status, are entitled to gratuity on the termination of their employment subject to the conditions stipulated therein.In order to ensure its prompt payment, your management may opt for any Group Gratuity Insurance Scheme offered by Insurance companies.The Act is a complete Code in respect of gratuity and in case of its denial by the employer, ample legal provisions are there for its recovery.
From India, Salem
I would like you to read the preamble of the Payment of Gratuity Act,1972. It clearly states that the Act provides a scheme for the payment of gratuity to employees engaged in factories,mines,oil-fields,plantations,ports,railway companies,shops or other establishments. Sec1(3)(c) of the Act empowers the Central Govt to extend its application to any other establishment by means of notification.Therefoe as rightly said by Mr.Malik the Act is applicable to your company and all the employees, irrespective of their status, are entitled to gratuity on the termination of their employment subject to the conditions stipulated therein.In order to ensure its prompt payment, your management may opt for any Group Gratuity Insurance Scheme offered by Insurance companies.The Act is a complete Code in respect of gratuity and in case of its denial by the employer, ample legal provisions are there for its recovery.
From India, Salem
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