Dear all, I have a query where i need to know the following Whether MD, Director & partners of the company are entitled for the Gratuity ? Plz reply on above Regards, Mahesh Patel
From India, Ahmadabad
From India, Ahmadabad
4250
Dear MadhuT.K.
Thanks for response
I got the answer th'gh LLR
The defination of 'Employee' u/s-2(e) of the Pay. of Gratuity Act1972 does not spellout as to whether the director is an employee or not but it depends upon the functions or duties performed by a director. it is, however,made clear that if a director of a company is performing duties & is working for the company then he will come within the purview on 'employee' under the act.
But again question that if he is director for more than one company then??????
Mahesh Patel
From India, Ahmadabad
Thanks for response
I got the answer th'gh LLR
The defination of 'Employee' u/s-2(e) of the Pay. of Gratuity Act1972 does not spellout as to whether the director is an employee or not but it depends upon the functions or duties performed by a director. it is, however,made clear that if a director of a company is performing duties & is working for the company then he will come within the purview on 'employee' under the act.
But again question that if he is director for more than one company then??????
Mahesh Patel
From India, Ahmadabad
Mahehs,
It is certainly the duties and responsibilities that decide but one more thing is that, gratuity is calculated on salary and not on any fees or share of profit.
If a person is employed as director in more than one company, he will get gratuity from each company on his leaving each of the company after 5 years of continuous service.
Regards,
Madhu.T.K
From India, Kannur
It is certainly the duties and responsibilities that decide but one more thing is that, gratuity is calculated on salary and not on any fees or share of profit.
If a person is employed as director in more than one company, he will get gratuity from each company on his leaving each of the company after 5 years of continuous service.
Regards,
Madhu.T.K
From India, Kannur
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc