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Maheshvjti   17 February 2016

Gratuity payment for 5 days working employee

Hello Experts,

I was working in well known IT company for 4 years 232 days which works 5 days per week. This company has its head office in Mumbai and its very valued company in Indian IT Industry. I have received FFS stating through email that

Gratuity :- As per the Gratuity Act, an employee becomes eligible to receive the Gratuity amount only when he/she completes 4 years and 240 days in an organization.

I have already sent reply to them stating 4 years 190 days criteria for eligibilty of gratuity for organisation working less than 6 days but still I have received above reply.

Please let me know how I can take this matter further.

 



Learning

 3 Replies

Kumar Doab (FIN)     17 February 2016

Submit FormI under proepr acknowledgment.

There is a similar query in Experts section.....................and it was stated by the querist that company has claimed that it is working for 24x7 and hence 4Y240D.

 

However the exemption has granted to IT companies from sections of Shops & estbs Act,to work for 24x7 to align with global timings...............

 

However the employees have a contarct to work for 5days.

 

It is another loophole being exploited.

 

Discuss with IT/ITeS employee's unions/Trade Unions and persist and let the employers agree to you.

Taje help of an able counsel specializing in labor-service matters.

 

PF/Gratuity are social security enactments and courts have been taking pro-employee stance.

Employees ate a huge vote bank and can convince the state govts to enact provisions under state rules including but not limited to Shops & Estbs Act, State Payment of gartuity Rules e.g; Maharashtra Payment of gartuity Rules etc............

 

Shiv Sena had floated a separate wing for IT employees.

 

It employees union have resolved many of the issues with big companies including a recent one TCS...etc

 

 

 

1 Like

Maheshvjti   27 February 2016

Dear sir, I submitted Form I and below is reply on email by my previous organisation employee welfare services person. ############ Dear Mahesh, You may please refer the explanation given in the proviso under Section 2-A quoted by you in the mail below, which is reproduced herein below: Add. by Act 22 of 1987 sec. 3 (w.e.f. 1.10.1987).[Explanation.- For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which- (i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment; (ii) he has been on leave with full wages, earned in the previous year; (iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and (iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks]. This proviso deal with the number of days on which employee has actually worked under employer. It does not include the weekly holidays. Hence to assess the eligibility under Payment of Gratuity Act, employee should have actually worked under the employer for 190 working days. In your case, you have not completed 190 working days in the 5th year of your employment with us, you will not be entitled for Payment of Gratuity under the section quoted by you. ########### Please let me know your expert opinion.

Kumar Doab (FIN)     29 February 2016

You have posted this email in other thread and has duly been replied.

Now you need to Act.

Rest is upto you.

 


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