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Prabakaran (Manager)     22 May 2013

Applicability of gratuity

Hi to all,

I want to know the applicability of gratuity & superannuation benefits for an employee who has served for more than 5 years in the following scenarios:

1.No of employees in the company is less than 20 and the company is not registered as per PF act.

2.Till date the company din't do any statutory deductions as per It act

Thanks in Advance,

Prabakar.



Learning

 3 Replies

Kumar Doab (FIN)     22 May 2013

 

 

 

If the number of employees is less than 20 but have been ten at any point of time,

Payment of Gratuity Act, 1972 is applicable.

 

Section: 1
Short title, extent, application and commencement:

3 (b) (c)..........

Employer as deductor should have deducted TDS and issued Form16.

 

Does this employer provide salary slip?

All employees should demand salary slip for all months of employment.

 

Employee may file his ITR as per true figures.

 


Attached File : 501707597 paymentofgratuityact(1).doc downloaded: 271 times

Prabakaran (Manager)     22 May 2013

Thanks for ur reply.

Employer din't deduct TDS or issued Form 16.What happens then on gratuity?

Does employee will have legal remedy if employee declines to pay gratuity?

Kumar Doab (FIN)     22 May 2013

 

Submit FormI to employer under proper acknowledgment.

If employee has submitted notice of resignation, employee has notified the employer of his date of retirement.

Employee can submit formI 1 month before his date of retirement, and employer may disburse payment of Gratuity with FNF settlement on date of retirement.

 

If employer is showing tantrums draw the attention to word “WHOEVER” in

 

Section 9: Penalty: (1) Whoever, for the purpose of avoiding any payment……… knowingly makes or causes to be made……… punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.

 

If the employer does not disburse Gratuity in one month you approach Controlling Authority of Gratuity which might be DLC in your local o/o Labor Commissioner.


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