It is argued by an HR Manager that the gratuity is payable to the employee who left from the services (after completing the five years or more) - only on request and the company need not pay the gratuity as its own. My HR seniors can say whether it is correct .
From India, Madras
63From India, Madras
Hi, Please arrange training for your HR Manager. He/She needs to refresh knowledge. Regards,
From India, Pune
From India, Pune
Gratuity is the gift given by the Employer to the Employee after 5 years of working tenure it is an amount payable by the employer himself and for which no contribution either by the employer or employee is required to be made to any public fund.As per the Act, the amount becomes due at the time of employee leaving the establishment due to any reason, viz, resignation, superannuation or death.. So as per the Law the Employer is liable to pay and not depend on the willingness to pay or Give.
From India, Indore
From India, Indore
Hi all, need to know if the gratuity payable after 5 yrs / 1yr is organizational pOlivy dependent ? Is it true ?
From India, Pune
From India, Pune
Dear Friends,
The above statements made by respective members, needs to be looked afresh and amended. The fact is that the Gratuity is not at all any GIFT by an employer to an employee while he / she leaves the company after completing 5 years or more of loyal services, but it is his / her fundamental legal rights under Gratuity Act. For getting his dues from the employer once he / she leaves the company does not warrant any demand, but once he resigned, the same is due to employee while making his / her full & final settlement. In case of the company does not make any such payment, the aggrieved employee can approach the appropriate authority. Even in case of any unpaid dues of workers / employees which are lying more than 3 years old are to be deposited in respective State Labour Welfare Fund, which is a law. It is altogether different that very 2 few employers are abiding by such law. Now the second point is that the so called gratuity liability can be accumulated in Trust, under LIC Group Gratuity Scheme, where in Income Tax Rebates are also available. For more exhaustive details, kindly refer to Bare Act of Gratuity.
From India, New Delhi
The above statements made by respective members, needs to be looked afresh and amended. The fact is that the Gratuity is not at all any GIFT by an employer to an employee while he / she leaves the company after completing 5 years or more of loyal services, but it is his / her fundamental legal rights under Gratuity Act. For getting his dues from the employer once he / she leaves the company does not warrant any demand, but once he resigned, the same is due to employee while making his / her full & final settlement. In case of the company does not make any such payment, the aggrieved employee can approach the appropriate authority. Even in case of any unpaid dues of workers / employees which are lying more than 3 years old are to be deposited in respective State Labour Welfare Fund, which is a law. It is altogether different that very 2 few employers are abiding by such law. Now the second point is that the so called gratuity liability can be accumulated in Trust, under LIC Group Gratuity Scheme, where in Income Tax Rebates are also available. For more exhaustive details, kindly refer to Bare Act of Gratuity.
From India, New Delhi
Gratuity is not a gift by employer ,but a statutory right enforceable by law.Gratuity rules say about the application by employee reply by employer etc.That way your HR maybe right.But pl read S.7(2) pf the Gratuity Act which states that whether or not employee has given application the employer shall determine the gratuity and give notice to employee and controlling authority on the amount of gratuity determined.
He shall pay gratuity within 30 days from the date it is payable,or else the employee is entitled for interest.
Hence it is advised to pay gratuity without waiting for employees application.
VARGHESE MATHEW
From India, Thiruvananthapuram
He shall pay gratuity within 30 days from the date it is payable,or else the employee is entitled for interest.
Hence it is advised to pay gratuity without waiting for employees application.
VARGHESE MATHEW
From India, Thiruvananthapuram
Dear Friend,
It is a condition precedent that the employee must have worked for a period of complete 5 years (continuous service) to become eligible for gratuity. But Proviso 1 to Sec. 4 of the Payment of Gratuity Act, provides that the completion of 5 years shall not be necessary where the termination is due to death or disablement. However, the quantum of gratuity will be the same as available under the provisions of the Act.
Also, when there is a settlement/company policy providing better terms for gratuity, the same will be accepted.
Regards,
Vinod
From India, Bangalore
It is a condition precedent that the employee must have worked for a period of complete 5 years (continuous service) to become eligible for gratuity. But Proviso 1 to Sec. 4 of the Payment of Gratuity Act, provides that the completion of 5 years shall not be necessary where the termination is due to death or disablement. However, the quantum of gratuity will be the same as available under the provisions of the Act.
Also, when there is a settlement/company policy providing better terms for gratuity, the same will be accepted.
Regards,
Vinod
From India, Bangalore
Dear PR,
I thing your HR Manager is ignorant of Gratuity Act. He is clinging to a cliff and he is bound to fall in to deep gutter anytime. Payment of gratuity is the primary responsibility of the Employer/HR whether U apply or not. For the delay the employer has to settle gratuity with interest. So U never lose anything. Let him sleep aaram se.
kumar.s.
From India, Bangalore
I thing your HR Manager is ignorant of Gratuity Act. He is clinging to a cliff and he is bound to fall in to deep gutter anytime. Payment of gratuity is the primary responsibility of the Employer/HR whether U apply or not. For the delay the employer has to settle gratuity with interest. So U never lose anything. Let him sleep aaram se.
kumar.s.
From India, Bangalore
True, it is not a gift from employer to departing employee, but a legal right ( not a fundamental right - as this word has different connotation under constitution ) of the employee to get it. It use to be a gratuitous act on the part of employer, prior to the passing of Payment of Gratuity act 1972.
It is the duty of the employer to get the required forms filled from the employee / dependent / nominee as the case may be and simply pay.
Abhay Damle
From India, Thana
It is the duty of the employer to get the required forms filled from the employee / dependent / nominee as the case may be and simply pay.
Abhay Damle
From India, Thana
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Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf
Gratuity Form I.doc