Applicability of Grautity Act 1972 to Trust Hospital
Arihant AC
(Querist) 23 August 2008
This query is : Resolved
Hello Friends
I have 1 querry regarding Grautity Act applicable to Hospital run on grant of Govt.
1 Hospital is running by trust with no profit making. On Loss they recd. grant in Rs. from Govt of 25% to 50% of loss. The said Hospital is in Urban Area where only poor people came for treatment. The staff of Hospital including Doctors are more then 20. The said Hospital is running since last 30 years. they demand grant to Govt. for giving grautity to the Employee who are been retired.
I want to know that whether this type of Establishment running on grant, has to pay Grautity or whether the said hospital can get Exemption from Grautity Act?
Waiting for early reply.
Regards,
Nehal
Manish Singh
(Expert) 23 August 2008
hospitals are covered under the gratuity act by their ver extent & scope as provided under the act.
so irrespective of all other facts if you are not exempted specifically under the act by taking permission, you shall be governed by the act.
Arihant AC
(Querist) 25 August 2008
Thanks for your reply Mr. Manish Singh. can you tell me of getting Exempted under Act by concerned Govt. as all the amount was paid by Govt. through Grant Amount recd. by Hospital
Regards,
Nehal
Manish Singh
(Expert) 25 August 2008
Dear Mr. Nehal,
You can ask for exemption under Sec 5 of the Act if you have better provisions than the act but its alws a descretionary power.
