Dear All,
As per the payment of gratuity act, an employee to pay the gratuity to an employee within the 30 days of the date of his resignation.
Please advice which approach we should follow for following condition:-
1-Termination of employee for misconduct.
2- Termination of absconding employee.
3- Employee not turned up to HR to take clearance from the company.
4-In case if employee take clearance from the coy after 30 days.
Please advice which approach we should follow. Is gratuity payable in all cases or employer can forefeit their gratuity or there is any other legal obligation for an employer?
Regards
Ranjeet
From India, New Delhi
11As per the payment of gratuity act, an employee to pay the gratuity to an employee within the 30 days of the date of his resignation.
Please advice which approach we should follow for following condition:-
1-Termination of employee for misconduct.
2- Termination of absconding employee.
3- Employee not turned up to HR to take clearance from the company.
4-In case if employee take clearance from the coy after 30 days.
Please advice which approach we should follow. Is gratuity payable in all cases or employer can forefeit their gratuity or there is any other legal obligation for an employer?
Regards
Ranjeet
From India, New Delhi
Dear Mr.Ranjeet
The liability of the employer to pay gratuity within the time limit specified is absolute and once the relationship of master and servant is terminated, the obligation arises. The employer cannot wait beyond 30 days in all the cases stated by you. The employee taking clearance after 30 days does not absolve you of the liability to pay the gratuity within 30 days. According to the Payment of Gratuity Act the employer has to pay the gratuity within the stipulated time and if he fails to do so, the employer is liable to pay interest.
With regards
From India, Madras
The liability of the employer to pay gratuity within the time limit specified is absolute and once the relationship of master and servant is terminated, the obligation arises. The employer cannot wait beyond 30 days in all the cases stated by you. The employee taking clearance after 30 days does not absolve you of the liability to pay the gratuity within 30 days. According to the Payment of Gratuity Act the employer has to pay the gratuity within the stipulated time and if he fails to do so, the employer is liable to pay interest.
With regards
From India, Madras
Dear Mr.Krishnan,
Thanks for such a nice clarification.
Would request you to advice in case if employee is absconding and does not turn up to fill the form, what should the process we should opt?
Is there any regulation in the act which states than an employee has to take the clearance first from the company.
Regards
Ranjeet
From India, New Delhi
Thanks for such a nice clarification.
Would request you to advice in case if employee is absconding and does not turn up to fill the form, what should the process we should opt?
Is there any regulation in the act which states than an employee has to take the clearance first from the company.
Regards
Ranjeet
From India, New Delhi
Dear Mr. Ranjeet,
1. Full gratuity as per the statutes should be given within the stipulated period, if the separation of the employee is not a part of disciplinary action resulting in making loss to the compnay by misapropriation/fraud, whcih has been proved in the enquiry.
2. An absconding employee should be terminated with giving notice as per statutes and his gratuity should be settleled within the stipulated period
3. Gratuity should be calculated and kept ready. should infom the employee to come and settle the dues and collect gratutiy.
4. If the employee takes clearance after 30 days also the gratuity should be settled.
NB: the question of interest arises only when the employee approached the gratuity authority.
Regards
Sebastian
From India, Thiruvananthapuram
1. Full gratuity as per the statutes should be given within the stipulated period, if the separation of the employee is not a part of disciplinary action resulting in making loss to the compnay by misapropriation/fraud, whcih has been proved in the enquiry.
2. An absconding employee should be terminated with giving notice as per statutes and his gratuity should be settleled within the stipulated period
3. Gratuity should be calculated and kept ready. should infom the employee to come and settle the dues and collect gratutiy.
4. If the employee takes clearance after 30 days also the gratuity should be settled.
NB: the question of interest arises only when the employee approached the gratuity authority.
Regards
Sebastian
From India, Thiruvananthapuram
Barring certain instances of section 4(6) of the Payment of Gratuity Act where an employer can forfeit the gratuity either partially or fully, payment should be made within 30 days of it becoming due. In case the employee has been absconding or is not traceable, the amount shall be deposited with the appropriate authority under the Payment of Gratuity Act within 30 days. By doing so, the employer's liability will come to an end and no interest will be payable.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Even if the gratuity is forfeited partially the time limit for disbursing the remainder of the gratuity payable is 30 days from the date on which the termination becomes effective. According to section 7(3-A) of the Payment of Gratuity Act, the employer is liable to pay interest if the amount of gratuity is not paid within thirty days from the date on which the gratuity becomes payable. It is not stated in the Payment of Gratuity Act that the liability to pay interest arises only when the employee approaches the Authority.
From India, Madras
From India, Madras
Dear Mr.Krishnan/Madhu Sir,
Thanks for clarification.
As suhhested by you that gratuity should be deposited to concern autority. Who is concern authority? In case if company will not do so what are the penalities? What is the maximum time for depositing the gratuity.
Practically, company dont follow such practices and how can a controlling autorities can keep controls/checks over such practices.
Regards
Ranjeet
From India, New Delhi
Thanks for clarification.
As suhhested by you that gratuity should be deposited to concern autority. Who is concern authority? In case if company will not do so what are the penalities? What is the maximum time for depositing the gratuity.
Practically, company dont follow such practices and how can a controlling autorities can keep controls/checks over such practices.
Regards
Ranjeet
From India, New Delhi
Controlling authority will be different for different areas and is appointed by the appropriate authority. The appropriate authority for factories, mines, port and under the control of central government is Central Govt and for other establishments like those coming under the state's Shops and Commercial Establishments will be State Govt (labour Officer)
The time limit for depositing remains the same, ie, 30 days of it becoming due and for delayed payment interest as directed shall have to be paid. This is in addition to imprisonment and fine as provided under the Act.
Madhu.T.K
From India, Kannur
The time limit for depositing remains the same, ie, 30 days of it becoming due and for delayed payment interest as directed shall have to be paid. This is in addition to imprisonment and fine as provided under the Act.
Madhu.T.K
From India, Kannur
Under section 3 of the Payment of Gratuity Act the appropriate Government can appoint Controlling Authorities under the Payment of Gratuity Act. In the case of the following the Central Government is the appropriate Government.
(a) establishments belonging to or under the control of the Central Government
(b) establishments having branches in more than one State.
(c) factory belonging to or under the control of the Central Government
(d)major port,mine oilfield or railway company
In all cases other than the above the appropriate Government is the State Government.
If the establishment referred to in your post falls in any of the categories listed from (a) to (d) above, the Controlling Authority appointed by the Central Government will have jurisdiction.
If the establishment referred to in your post does not fall in any of the categories listed from (a) to (d) above, the Controlling Authority appointed by the Government of the State in which this establishment is situate, will have jurisdiction.
The time limit for deposit is thirty days from the day on which gratuity became payable. If default is made the employer is liable to pay interest.
Some of the management of the companies are not following this provision simply because the employees/workers are not aware of the provision and do not claim interest if there is any delayed payment/deposit of gratuity.
With regards
From India, Madras
(a) establishments belonging to or under the control of the Central Government
(b) establishments having branches in more than one State.
(c) factory belonging to or under the control of the Central Government
(d)major port,mine oilfield or railway company
In all cases other than the above the appropriate Government is the State Government.
If the establishment referred to in your post falls in any of the categories listed from (a) to (d) above, the Controlling Authority appointed by the Central Government will have jurisdiction.
If the establishment referred to in your post does not fall in any of the categories listed from (a) to (d) above, the Controlling Authority appointed by the Government of the State in which this establishment is situate, will have jurisdiction.
The time limit for deposit is thirty days from the day on which gratuity became payable. If default is made the employer is liable to pay interest.
Some of the management of the companies are not following this provision simply because the employees/workers are not aware of the provision and do not claim interest if there is any delayed payment/deposit of gratuity.
With regards
From India, Madras
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