If a company closes where employees' service to company is less than 5 years, can employee get gratuity? Please guide us. Regards, Sachin
From India, Pune
From India, Pune
[Payment of gratuity.-(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor the shares of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Disablement means such disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement. [Section 4(1)].]
To know more please see the link KVJ RAGHUNATH: THE PAYMENT OF GRATUITY ACT, 1972
KVJ Raghunath
<link outdated-removed> ( Search On Cite | Search On Google )
9701966688
From India, Vijayawada
42(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Provided further that in case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor the shares of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Disablement means such disablement which incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement. [Section 4(1)].]
To know more please see the link KVJ RAGHUNATH: THE PAYMENT OF GRATUITY ACT, 1972
KVJ Raghunath
<link outdated-removed> ( Search On Cite | Search On Google )
9701966688
From India, Vijayawada
Hi Sachin,
Payment of gratuity can be made even if employee service period is less then 5 years. 5 years criteria is only for income tax purpose. If any employee completed 5 years of service then he/ she is eligible for tax exemption.
From India, Delhi
Payment of gratuity can be made even if employee service period is less then 5 years. 5 years criteria is only for income tax purpose. If any employee completed 5 years of service then he/ she is eligible for tax exemption.
From India, Delhi
Dear Rushpal,
The term superannuation means when the employee attains 58 years of age.
Retirement can happen in different forms.
Voluntary retirement popularly known as VRS.
On attaining age of 58 years popularly known as "Superannuation".
Trust matter is clarified. Any further queries contact
M.V.Kannan
From India, Madras
The term superannuation means when the employee attains 58 years of age.
Retirement can happen in different forms.
Voluntary retirement popularly known as VRS.
On attaining age of 58 years popularly known as "Superannuation".
Trust matter is clarified. Any further queries contact
M.V.Kannan
From India, Madras
Dear Sachin,
it is very strange to read above unwanted opinions by my other dear friends, what's a query and what they are explaining all is not well dear,
what raghunath has displayed is a provision of The payment of gratuity act, and it throws light that only in the case of death or disablement gratuity can be entitled before completing 5 years of continuous service. on the contrary those who have fired bcoz of closure of the company before completing 5 years service they are not eligible to receive the payment of gratuity.
So, get it & don't confuse with the query.
regards,
KIRAN KALE
From India, Kolhapur
it is very strange to read above unwanted opinions by my other dear friends, what's a query and what they are explaining all is not well dear,
what raghunath has displayed is a provision of The payment of gratuity act, and it throws light that only in the case of death or disablement gratuity can be entitled before completing 5 years of continuous service. on the contrary those who have fired bcoz of closure of the company before completing 5 years service they are not eligible to receive the payment of gratuity.
So, get it & don't confuse with the query.
regards,
KIRAN KALE
From India, Kolhapur
Dear Amar,
ur statment is spam, and trying to club two entirely different acts in one bucket.
employee who has not completed service of 5 years continuously should not in any way entitled for the payment of gratuity. so far income tax is concern those who are liable for income tax would get exemption from it when they received the payment for gratuity after service of 5 years.
Plz don't get it in wrong way.
Regards,
KRAN KALE
From India, Kolhapur
ur statment is spam, and trying to club two entirely different acts in one bucket.
employee who has not completed service of 5 years continuously should not in any way entitled for the payment of gratuity. so far income tax is concern those who are liable for income tax would get exemption from it when they received the payment for gratuity after service of 5 years.
Plz don't get it in wrong way.
Regards,
KRAN KALE
From India, Kolhapur
Dear Mr. KIRAN KALE
Good evening...........
Please clarify the above matter, exactly what to do when company is closed and the employee is not completing 5 yrs of service ???
Gratuity is payable or not ?
From India, Jaipur
Good evening...........
Please clarify the above matter, exactly what to do when company is closed and the employee is not completing 5 yrs of service ???
Gratuity is payable or not ?
From India, Jaipur
Dear HR Colleagues
can any body guide me or suggest me in below mentioned issue
One Trainee Eng was working in our organisation & he completed is 1yr service & after finishing his duty when he is proceeding to his home he met with an accident & died on that
Now i hav one doubt for his PF pension he has nominated both his father & mother who is eligible to get the pension. He is from a muslim community.
This matter is disc with some of my friend but according to one of them that muslim persl law is applicable in pf act & his mother is not eligible to get the monthly pension
regards
Mahenda
From India, Mumbai
can any body guide me or suggest me in below mentioned issue
One Trainee Eng was working in our organisation & he completed is 1yr service & after finishing his duty when he is proceeding to his home he met with an accident & died on that
Now i hav one doubt for his PF pension he has nominated both his father & mother who is eligible to get the pension. He is from a muslim community.
This matter is disc with some of my friend but according to one of them that muslim persl law is applicable in pf act & his mother is not eligible to get the monthly pension
regards
Mahenda
From India, Mumbai
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