Service compensation in lieu of gratuity as per ap shops & establishment act
I.V. CHANDRA SEKHAR
(Querist) 09 April 2014
This query is : Resolved
Hi, I have worked around 3Yrs 6 Months 14 days in a Manufacturing company based at Hyderabad.
Would I be eligible for Service Compensation in lieu of Gratuity (since 5 yrs of service not completed) as per the Andhra Pradesh Shops & Establishment Act.
If eligible let me know the base amount and formula for ascertaining the amount, whether it would be computed on Basic only or the Gross earnings.
Pls clarify my query
Kumar Doab
(Expert) 09 April 2014
>>> There is no substitute for Gratuity.
Payment of Gratuity is altogether independent and provisions are explained in Payment of Gratuity Act 1972.
Even if the employee has not completed No of years/days as Continuous Service is explained in Sec:2A (2a) (i) (ii) the employer can still pay Gratuity by his sweet will as per Sec: 4(5)
>>> Andhra Pradesh Shops & Establishment Act:
shall be applicable in your case if this Act is applicable to the office where you were/are located in the Manufacturing Company or if the factory or industrial undertaking falls outside the scope of the Factories Act, 1948, (Central Act 63 of 1948), {as explained in Sec: 2(5)}.
Otherwise being a manufacturing company it may not be covered by this Act.
If it is covered the registration certificate might have been displayed by the company near entrance/on notice board.
If your office and you are covered by this Act then you may refer to Sec: 47(1) (3) (4)
It is suggested that you should obtain the said “Service Compensation” without getting into any debate, argument, with employer and by applying your skills of persuasion, persistence, negotiation…………..
For good reasons further elaboration is being avoided in this thread.
Hope you have understood and shall appreciate.
Guest
(Expert) 10 April 2014
Niether gratuity nor any other compensation is permissible in your case.
Kumar Doab
(Expert) 10 April 2014
Sec;47 mentions @ average wages.
Stake claim.
Let employer reply in writing.
Rajendra K Goyal
(Expert) 11 April 2014
Gratuity or other compensation in lieu are not payable in the given case,
Kumar Doab
(Expert) 12 April 2014
Individually I would like to help you.
You may come back for the issues that you might face.
Do not give up until you have fully attempted.
If required I may mention the names of gentlemen that are well versed with laws applicable in AP.
The courts of law have commented that:
10. Apart from taking us through the above provisions, learned Counsel for the petitioners took us through some of the decisions of this Court. Firstly he relied upon the decision of ..........................
wherein it is held that the provisions of Shops and Establishments Act, 1966 will prevail over the provisions of the Co-operative Societies Act and termination of service of employees of a Co-operative Marketing Society, without following the procedure under the Shops and Establishments Act, is not valid.
