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REEBI JOSE (PERSONNEL OFFICER)     23 July 2008

Gratuity

Dear Frends

 

Sub: Determination of gratutiy amout.

 

One worker joined in our company during 1996 was dismissed from service during the year 1999 and later on 2003 he was reinstated into our service based on an order of labour Court with continuity in service but without back wages. But at present ie on 30th June, 2008 he was resigned from service.Please also note that no service break was mentioned in the reinstating order.

 Please let me know whether we shall pay gratuity for 8 years (ie 3 year past service plus 5 year present service) OR it is for 12 years ie from 1996 to 2008.

Thanking you,

 

Reebi

 

 



Learning

 6 Replies

Shrikant (Senior executive legal)     23 July 2008

GRatuity is a gift by the employer to his best employee this is the main object if u gone through the Gratuity act you find that there is mathod of calculation is given, if his service is tretaed as a continuence service without backwages in that circumtances for that period no gratuity is applicable


 


regards

Guest (n/a)     23 July 2008

Hi shrikant


Thank you for the reply. ISince no service break was mentioned in the reinstating order whether it is necessary to pay gratuity for 12 years.


 


 

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     23 July 2008

Sub section (6)of Section 4 empowers not to pay gratuity to an empoyee under certain circumstances, viz. all major misconducts of such employee. Section 4 (6) enunciates that the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of property belonging to the employer shall be forfeited to the extent of the damage or loss so caused. It also says that the gratuity payable to an employee may be wholly or partly forfeited.


(i) If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or


(ii)if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employement.

H. S. Thukral (Lawyer)     23 July 2008

since the employee was ordered to be reinstated in service with continuity of service, he is entitiled to all the conequential benifits including gratuity for all that period.  ( including revision of wages /annual increments etc.)

P.ESAKKIMUTHU (LABOUR CONSULTANT)     24 July 2008

it is for 12 years as labour court ordered for continuity of service

Pragadeesh (Lawyer/Factory certification consultant/Cyber crime Analyst)     28 July 2008

The last two reply is very correct. As for as ur case is concerned the order frm the court is in favour of the employee and the above  section is not applicable.hence the employer has to pay the gratuity right from 1996.


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