Dear sir,
Suppose if an employee does the service for 6years in which first year he was only getting stipend.my question is the whether first year is considerable for gratuity or he will be paid gratuity for only 5 years.
Regards,
Manoj Pandey
From India, Mumbai
Suppose if an employee does the service for 6years in which first year he was only getting stipend.my question is the whether first year is considerable for gratuity or he will be paid gratuity for only 5 years.
Regards,
Manoj Pandey
From India, Mumbai
Dear Manoj,
Referring to Payment of Gratuity Act he wasn't an employee earlier while he was drawing stipend, in my view his service for stipend period will not be considered for gratuity since.
Section 2(e) of Act states below:-
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
From India, Delhi
141Referring to Payment of Gratuity Act he wasn't an employee earlier while he was drawing stipend, in my view his service for stipend period will not be considered for gratuity since.
Section 2(e) of Act states below:-
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
From India, Delhi
[B]Dear Manoj Pandey,
If the employee is getting stipend under The Apprenticeship Act , with written contract between the Manager of Trainer (the company) and The Govt. He /She shall not be eligible for consideration of gratuity. otherwise he/she is eligible to get Gratuity for 6 years.
Hope this will suffice your querry,
Regards
V K Sharma
Tarapur
If the employee is getting stipend under The Apprenticeship Act , with written contract between the Manager of Trainer (the company) and The Govt. He /She shall not be eligible for consideration of gratuity. otherwise he/she is eligible to get Gratuity for 6 years.
Hope this will suffice your querry,
Regards
V K Sharma
Tarapur
Apprentice referred to in the act must be apprentice under the apprentice act or as defined specifically under the standing orders. In any other case, the fact that he is paid a stipend is immaterial. He will be eligible for gratuity for that period
From India, Mumbai
From India, Mumbai
Though if we look at it from the apprentice act, stipend is different than salary.
an apprentice is different than an employee.
However would wish that you can clarify if the title given was related to apprentice and was he/she covered under apprentice act?
If yes, then he is not covered under gratuity act since gratuity is applicable to all employees who are getting wages or salaries.
If however you are just re-naming the compensation he/she got as stipend but
Had all the normal components as any other employee,
Deducted PF and other statutory contributions as in other employees,
Then though he was paid stipend, he was treated at par with employees and hence eligible for gratuity for that period as well.
Hope this was able to clarify your doubt.
From India, Mumbai
an apprentice is different than an employee.
However would wish that you can clarify if the title given was related to apprentice and was he/she covered under apprentice act?
If yes, then he is not covered under gratuity act since gratuity is applicable to all employees who are getting wages or salaries.
If however you are just re-naming the compensation he/she got as stipend but
Had all the normal components as any other employee,
Deducted PF and other statutory contributions as in other employees,
Then though he was paid stipend, he was treated at par with employees and hence eligible for gratuity for that period as well.
Hope this was able to clarify your doubt.
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
FORM - F (TN Payment of Gratuity Rules, 1973).xls
Abstract of PAYMENT OF GRATUITY ACT & RULES, 1972, FORM U[1].doc