Pf and gratuity

Probation period also counts for service for the purpose of calculation of minimum period of 5 years hence you are eligible to get gratuity as you will be completing 5 years of continuous service by 21-May-2012.  Send me/share your service agreement to see whether we can do anything to prevent your employer from terminating your service.

Mr. Chandrasekhar has given valuable advice. Kindly follow it.

You post your appointment letter. You may obtain copy of Certified Standing orders of the company (which are to be displayed at the entrance) and employee/service rule book also. These are available with concerned personnel of HR and employee is within rights to obtain these.You may erase the names etc to maintain the confidentiality.

You are eligible. Your performance has been rated and documented as good. You have the record. What is your designation and nature of duties?

What is the reason expressed in the termination order for terminating your service? You may be able to term it as retrenchment.

It is felt that you may represent to the good offices of your appointing authority, MD/CEO, Company Secretary, with a copy to Head-HR, in writing under acknowledgment, highlighting your performance, meritorious services rendered for the company, revenues/profit generated for the company and spare you from termination. Company can accommodate you in other depts. This shall help you later.

If the company does not grant any relief you may sign acceptance on FNF statement.

You may also accelerate your efforts for getting suitable job at better remuneration, position in the Industry.

1)u are entitled to get gratuity for ur 5yrs. continuous service.2)i have some doubt whether ur management can force u to quit the job after issuing termination notice only due to reduction of manpower policy,overlooking ur good performance.3)u pl contact the (L)Advocate(AS SUGGESTED EARLIER)with ur terms and conditions of service along with termination notice.4)how many employees have been so far terminated or onthe way...as per company policy?

Please read in earlier post as"If the company does not grant any relief you may not sign acceptance on FNF statement."

Thanks for all your valuable info / advise. basically this requirement was written on behalf of my friend who is working in chennai. Regards RShankar

Fair enough, you are helping your friend. But his name should have appeared in the first post of yours in this elite forum who are more than willing to help you or anyone diligently/honestly/quickly doing fair justice to your situation. Pls donot mind but that is just a humble request for all persons posting any request for help.... Else it will degrade trust and honesty of repliers...

I retired from Aug 2008.A gratutity was given to me for Rs.350000/-.But thereafter the amount of gratuity was incresed to Rs.1000000/- & the increse was effective since 1st January 2007.It was paid in year 2010 BUT hEVY iNCOME TAX I.E.30% WAS DEDUCTED AT sOURCE. Since Gratuty fund was/is exempted from income tax WAS it right to deduct income tax.I was working in COAL INDIA LTD. as an Executive.

Refer : https://www.citehr.com/326417-gratuity-taxable.html The 30% tax deducted by company is refundable. YOu can claim refund if it is already paid into the account of Income Tax Department otherwise, move an application with your employer to reverse the entry.

AS per gazette notification,the limit has been increased from the appointed date: 24th may,2010.

The limit refers to the date of retirement on or after the limit has been increased.

Gratuity received by an employee on his retirement is taxable under the head Salary.

 
 

Any death cum retirement gratuity received by Central and State Govt. employees, Defense employees and employees in Local authority shall be exempt.

Any gratuity received by persons covered under the Payment of Gratuity Act, 1972shall is exempt subject to:

-For every completed year of service or part thereof, gratuity shall be paid at the rate of fifteen days wages based on the rate of wages last drawn by the concerned employee.

-The amount of gratuity as calculated above shall not exceed Rs. ………as applicable at the date of retirement.

 Kindly look into the tax treatment sheet provided by employer.

Dear Sir,

 

Please guide me regarding Gratuity applicability. As I have come to know that the period for Gratuity is applicable 4 yeras and 240 days . What is the recent judgement issued by the court.

 

Sudhir Bhardwaj

 

240 days in a year if the establishment works for 6 days in a week and one hundred and ninety days, in an establishment which works for less than six days in a week.

The act in itself is clear and does not warrant any decision by the court.

However HC and SC judgments are enclosed.

Payment of Gratuity Act, 1972

Section: 2A
Continuous service.

(2) (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

 

The employer may either obtain insurance from LCI or establish an approved gratuity fund.

The employers who have done so shall not face difficulty for payment under the social security tool and may not require delaying by seeking legal loopholes.

Section: 4A
Compulsory insurance

(3) For the purpose of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed get his establishment registered with the controlling authority in the prescribed manner and no employer shall be registered under the provisions of this section unless he has taken an insurance referred to in sub-section (1) or has established an approved gratuity fund referred to in sub-section (2).

Valuable advice of learned experts/members is sought.

Kindly provide other judgements also. It shall help many of the fellow countrymen.

Thanks Sir,