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Prabakaran (Consultant)     14 June 2012

Gratuity eligibility

Hi

I worked in a Hyderabad based IT company from Nov 2003 to Sep 2007 as full term employee.

Then I was transferred to the US office of the above said company from Oct 1 2007 and worked there till Nov 2011.

My question is, am I eligible for the Gratuity claim at the Indian office since I have worked more than 5 years for the same company ,if you add my serivce in the Indian office as well as its US office?

 

Thanks

Regards

Prabakaran



Learning

 3 Replies

Kumar Doab (FIN)     19 June 2012

This is an interesting thread.

Valuable advice of learned experts and members is sought.

You had moved for the business reasons of  the company.

If your posting is at the most is deputation then deputation is part of service conditions, and period of deputation should be counted in regular service. You may carefully go thru the contents of letter of transfer/deputation…You may also obtain copy of certified standing orders of the company, employee rule book.

 

You may face such situation again in this company again. The company might also be looking for options if many employees are sent abroad like you. There may be other companies and employees facing same situation, who are moved abroad by the company but are on the payroll of the company.

PF and Gratuity are covered under Social Security Laws. The gratuity act is to benefit the employee and employer should on its own arrive on a conclusion which benefits the employee. If there are many employees in such a situation then employee can also accuse the company that it is taking away the social security benefit in the garb of unexplained rules.

Has the company provided any social security during posting abroad? Company may claim that social security was provided. If company claims you shall need to contest successfully.

Apparently there is no change in your status as you remain to be in the employment of the same company however the company may raise a question salary was disbursed as “earned outside India”. Your relationship with company remained as that of Employer and Employee.

Payment of Gratuity Act, 1972

 

Section: 2A
Continuous service.

(1)   an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service…………

(2)

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than –

 

Service rendered by an employee as work charged/ stop gap basis/ adhoc basis as also paid from contingencies

The employer shall have to prove discontinuity in service.

It is felt that Payment of gratuity act is silent on location of employee and tenure of services abroad.

Whereas for PF there seems to some relevant remarks.  Where was the salary processed and paid?

What is the situation with your PF?

 

The following info may be useful.

https://www.bcetgsp.ac.in/chapter8.php

 

  1. Such service is followed by regular employment.
  2. Such service shall be a full time job (and not part time or portion of the day).

Period spent on foreign service/assignment in or outside India if contributions towards pension are paid to the College by the foreign employer or the employee himself.

Following periods do not qualify for pension:-

Period of Foreign Service in or outside India when no pension contributions are paid to the College.

 

General Provident Fund-cum-Pension-cum-Gratuity Rules:

8.2 These rules apply to:-
All employees who are in the service of the College.

 

As per EPF rules:

Transfer of Provident Fund account:
Transfer of Provident Fund account from one region to other, from Exempted Provident Fund Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer Application in form 13 may be submitted to the concerned Provident Fund Office.

Indian Oil Corporation Rules:

1.2.3               Eligibility

 

                    An employee who was in service of the Corporation on the date of applicability of

                    these   rules   or   thereafter will   be   eligible   for   the benefits   under   the scheme  and

                    these rules.

You may also read:

Bank of Baroda PF rules:

“If  any  member  of  the  fund is  transferred  to  any  office  of  the  Bank  outside 

         India in respect of which no other Provident Fund is established he/she shall 

         continue to subscribe to this Fund and the Bank shall continue to contribute to 

         this Fund in the manner herein provided. 

and

21.      “The accumulated balance standing to the credit of a member according to the rules 

          shall be payable on the day he ceases to be a member of the Fund and shall be 

          paid to him within one month from the date he ceases to be  a member of the 

          Fund  whether  on  account  of  death  or  retirement  of  such  member  or  the 

          termination of his service and interest on such amount shall cease to be added in 

          the  individual  account  of  such  member  on  such  payment”

 

https://persmin.nic.in/DOPT/EmployeesCorner/Acts_Rules/temporaryRules/TemporaryServiceRules1%28C%29.htm

<<<< Temporary Service Rules >>>>

 


CENTRAL CIVIL SERVICES (TEMPORARY SERVICE) RULES, 1965

 

(ii) Service in India under military, munitions or stores authorities with a liability to service overseas or in any operational area;

(iv) A period of training with a military unit or formation involving liability to serve overseas or in any operational area;

 

 

Kumar Doab (FIN)     19 June 2012

You may find this useful.

https://www.indianrailways.gov.in/railwayboard/uploads/directorate/establishment/estbl-vol1-chap10-p01-p12.jsp

INDIAN RAILWAY ESTABLISHMENT CODE (Vol - I)

   

Chapter 10
State Railway Gratuity Rules

 

 1011. Contribution during deputation or foreign service. --When the services of a railway servant are lent to another Department/Ministry of Government or a State Government or to a foreign employer, a contribution towards Government contribution to provident fund and gratuity at the rate specified in paragraph 1255 of the Indian Railway General Code, Vol. I shall be levied during the period of loan, from the Department/Ministry of Government or the State Government or the foreign employer of the railway servant concerned as may be settled in each case.

Kumar Doab (FIN)     21 June 2012

 

What is the situation with your PF?

 

“Period spent on foreign service/assignment in or outside India if contributions towards pension are paid to the College by the foreign employer or the employee himself.”

“If  any  member  of  the  fund is  transferred  to  any  office  of  the  Bank  outside 

         India in respect of which no other Provident Fund is established he/she shall 

         continue to subscribe to this Fund and the Bank shall continue to contribute to 

         this Fund in the manner herein provided.  “

 You may explore payment of  employee contribution and getting employer's contribution.

Kindly post the updates in this thread. It shall be helpful for many of the fellow citizens.


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