Subramanian.V (NA) 11 March 2011
Dear Sir,
Is Gratuity Act mandatory for Central PSUs/ or Can central PSUs can have their own schemes which need not be governed by Gratuity Act? I find some PSUs such as NMDC Ltd has a scheme called "NMDC Employees' Group Gratuity Life assurance Scheme".
I rquest your experts to kindly clarify.
Subramanian.V
dinesh narayan (service) 13 March 2011
Yes ,Any establishment can frame a scheme for the purpose of Gratuity.But such Scheme cannot be less favourable that the provisions of the ACT,
Dinesh Narayan
Kirti Kar Tripathi (lawyer) 13 March 2011
An establishment can frame its own gratuity rules for its own employees but only condition that the same should not be less favorable then the Provision of the Payment of Gratuity Act
Subramanian.V (NA) 13 March 2011
Thank you very much Mr.Tripathi. Can You clarify the following:
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PSUs have been following in tandem the ceiling for Gratuity though there is no written rule. I would like your advice on my following statement from legal parlance: "Sir, you are aware that ceiling amount for payment of gratuity for employees of PSUs were being raised in tandem to such ceiling amounts to Government employees as a practice though there is no rule (I am aware that employees of PSUs & Government are covered by different Acts/Rules). It is also a fact that precedence of decisions act as rule of Law." Is my last sentence correct in legal parlance? Otherwise I request you to suggest me the correct way of putting it. Subramanian.V
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