Saswata,,, how long will it take to a company to open an gratuity account and processing with labour department.
From India, Bangalore
From India, Bangalore
I appreciate your genuine concern for your employees. If the change in the constitution of your Company does not impact the status of the employees and they continue to remain in your employment, then you can do either of the two things:
a) Calculate the Gratuity of All employees irrespective of the length of their service in the Company and hold the respective amounts in their accounts. Since Gratuity is paid only on separation, this amount may be added to the payable Gratuity calculated on the basis of their then current salaries in the new set up.
b) Just do not do anything. Let the employees carry on working and when someone leaves the Co. calculate his/her Gratuity and pay the same .
at the time of his/her exit.
I am assuming that the change in the constitution of your Company will not cause any break in service of the employees.
Best Wishes,
Vasant Nair
From India, Mumbai
90a) Calculate the Gratuity of All employees irrespective of the length of their service in the Company and hold the respective amounts in their accounts. Since Gratuity is paid only on separation, this amount may be added to the payable Gratuity calculated on the basis of their then current salaries in the new set up.
b) Just do not do anything. Let the employees carry on working and when someone leaves the Co. calculate his/her Gratuity and pay the same .
at the time of his/her exit.
I am assuming that the change in the constitution of your Company will not cause any break in service of the employees.
Best Wishes,
Vasant Nair
From India, Mumbai
There is some miscommunication on my part i think.
There is no concept of opening a gratuity account.
When the employee leaves service (either by resigning or termination) and he has completed 5 years of continuous service with the organisation, he is entitled to be paid an amount of money (15 days salary for every completed year of service) as Gratuity. In case of death, the gratuity is payable irrespective of whether he has completed 5 years.
This money is payable to the employee by the company directly.
There is no involvement of the labour department of the government except in case of a complain. The company does not have to deposit money with the labour department or with any other authority. They have to pay directly to the employee.
As per the rules, within 30 days of the employee giving the form (claiming his gratuity), the employer has to pay the same.
There is a provision of creating a gratuity fund so that the company has money to pay when an employee leaves. That is primarily to make it easier for the cash flow. The liability is to pay anyway, irrespective of whether the company has a gratuity fund or not
From India, Mumbai
There is no concept of opening a gratuity account.
When the employee leaves service (either by resigning or termination) and he has completed 5 years of continuous service with the organisation, he is entitled to be paid an amount of money (15 days salary for every completed year of service) as Gratuity. In case of death, the gratuity is payable irrespective of whether he has completed 5 years.
This money is payable to the employee by the company directly.
There is no involvement of the labour department of the government except in case of a complain. The company does not have to deposit money with the labour department or with any other authority. They have to pay directly to the employee.
As per the rules, within 30 days of the employee giving the form (claiming his gratuity), the employer has to pay the same.
There is a provision of creating a gratuity fund so that the company has money to pay when an employee leaves. That is primarily to make it easier for the cash flow. The liability is to pay anyway, irrespective of whether the company has a gratuity fund or not
From India, Mumbai
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