Gratuity
latheef
(Querist) 22 August 2013
This query is : Resolved
Dear sir,
I have total 11 year of service in a company, 5 years in India and remaining years in outside India.
In india I was on india payrolls and out side india I was on not on india payrolls but was on local terms but I was always considered as India employee. In this case how the gratuity is calculated. Would you please advise.
Regards,
Latheef
Kumar Doab
(Expert) 22 August 2013
This a very interesting thread.
Valuable advice of learned experts is sought.
It is not clear who is your employer and if the employer has its own approved trust and Gratuity Rules to manage the Gratuity………………………
Did you resign while leaving for abroad?
Was the posting abroad on deputation, by transfer letter?
There are threads suggesting that the employer relented and agreed to pay Gratuity for tenure of service abroad……………….
The Payment of Gratuity Act is silent on location…………..
It was found that there are rules framed by some employers for contribution to PF and Gratuity for tenure of service abroad………………and judgments.
In the meantime you may go thru some threads also e.g;
http://www.lawyersclubindia.com/forum/Gratuity-eligibility-59745.asp#.UhY1UtKAqWN
http://www.lawyersclubindia.com/forum/details.asp?mod_id=67376&offset=1#.UHE68mcWrts
http://www.lawyersclubindia.com/forum/Gratuity-unpaid-67376.asp#.UhY3QdKAqWN}
latheef
(Querist) 27 August 2013
the employer has its own approved trust to manage the PF and gratuity.
I have resigned abroad while the last drawn India salary was 7 year back, I was transferred from India and currently on local payroll terms.
The company acknowledge via email that they will consider the last drawn basic to calculate the gratuity and the total no of years but I want to check if the company has to consider the current fitted indian basic salary instead of last drawn basic.
since there is a big difference between the current fitted basic and last drawn basic, I want to seek your advise if what company is saying is correct or have to further push or take any legal action if required.
Kumar Doab
(Expert) 28 August 2013
You may download the Gratuity Rules and look into the provisions………………
If this establishment regularly and periodically transfers and deputes its employees outside India it should have framed clear and transparent rules and provisions.
Probably your employer ended the membership of PF and Gratuity on the day of transfer and is taking the Basic+DA as on last day when you ceased to be the member of the Fund.
Transfer and deputation are part of service conditions.
Transfer should imply you remained the employee of the same establishment and hence member of the fund.
Payment of Gratuity Act stipulates last drawn Basic+DA……….to be taken for calculation of Gratuity.
However you may show all of your documents to a competent and experienced lawyer specializing in such matters and proceed under expert advice of your lawyer.
Your lawyer may like to know:
Did this employer provide or paid for any social security benefits while you were serving abroad……………
Who paid for PF contributions in your PF a/c in India, while you were serving abroad: you or foreign employer………….
Valuable advice of learned experts is sought.
