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MARIMUTHU P (Legal Practioner)     06 April 2012

Gratuity

Dear friends,

 

Can any one please guide me in this issue?

In a private limited company an employee appointed as assistant manager for a monthly salary. After two years he was made as a Director of the company which was duly amended with the ROC vide Form 32. Since then he was being paid for director fees on consultation basis and a consolidated was being paid monthly. The TDS deducted from the fees was remitted to income tax office u/s 194j and the Form 16a also was duly issued to the director.

When he was retired from the compnay on account of his old age he was only a consultant designated as Director and fees paid to him was 45000 pm.

After his retirement he claims gratuity from the company for his entire period os service of ten years. And he approached Labour Commissioner for settlement.

My queries are:

  1. Whether he is eligible for gratuity?
  2. Is he a workman under ID Act to claim gratuity through Labour Commissioner?
  3. Can a non-workman claim gratuity through Labour Commissioner?


Please clarify the above ASAP.

MARIMUTHU.P

Advocate



Learning

 2 Replies

Kumar Doab (FIN)     06 April 2012

Controlling authority for gratuity may be ALC/DLC (O/o Labor commissioner) at the location, in this case.

He might have claimed to be whole time director/on payroll of the company.

Valuable advice of learned experts/members is sought.

V. VASUDEVAN (LEGAL COUNSEL)     08 April 2012

a whole time director is entitled for gratuity. Hence he can claim his gratuity by filing an application under the

the Payment of Gratuity Act, before the commissioner (usually the labour commissioner) and avail the remedy.

vasudevan


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