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Old 26-05-2008, 01:27 PM
bperos's Avatar
Join Date: Dec 2007
Location: Chennai
Posts: 16
Default Gratuity is payable from the date of joining or from the date of probation?

Hi,

The opinion of the members is solicited as we have a strong debate on
the subject

We have a trainee scheme for workers absorbed in the company rolls. The scheme starts from Intial training and goes on under various heads
before the guys move in to the probation and subequently confirmation.

The guy joning has trainee has to undergo training as trainee for about six years and subequently lands up in the probation.

The question for debate is whether the gratuity is payable from the date of joining or from the date of probation of the particular guy.

Can we have opinion on this please.

Thanks and regards,
B.Peros Kumar
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  #2 (permalink)  
Old 26-05-2008, 05:00 PM
Amatya007's Avatar
Join Date: Jan 2008
Location: DELHI
Posts: 60
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Hi,

The definition of employees under Payment of Gratuity Act is as under

"employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.

The Gratuity would be calculated from the Date of Joining, not from the date of confirmation of probation.

In your case, you are keeping an employee as trainee for 6 years, then put him of probation.

You have to calculate the Gratuity from the date of joining.

AMATYA
  #3 (permalink)  
Old 26-05-2008, 05:07 PM
M PRABHAKAR RAO's Avatar
Join Date: Nov 2007
Location: HYDERABAD, ANDHRA PRADESH
Posts: 87
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Dear Kumar,

Hi are these paid consolidated salary. What agreement is done at the time of joining. Even though on the probation the employees are eligible for PFand other benfits If there is no agreement that as trainees they shall be paid consolidated salary with out any benifits, they shall be eligible for all the benifits including the gratuity. As per the gratuity act they have to complete five years of service without break and should have worked for atleast 240 days in a year.

Rgds

Prabhakar
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Old 28-05-2008, 09:47 PM
bperos's Avatar
Join Date: Dec 2007
Location: Chennai
Posts: 16
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Hi peros Here

thanks for your valuable postings

With regards,
B.Peros Kumar
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Old 28-05-2008, 10:22 PM
BT4310's Avatar
Join Date: May 2008
Location: Live in Mumbai
Posts: 18
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From the attached judgement, it will be clear that the period of traineeship (so also probation period) is NOT TO BE EXCLUDED for counting the minimum 5 years for payment of gratuity.bharat

Attached Files
File Type: pdf Gratuity Orissa Mining Case.pdf (23.0 KB, 43 views)
  #6 (permalink)  
Old 31-05-2008, 11:24 AM
bperos's Avatar
Join Date: Dec 2007
Location: Chennai
Posts: 16
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hi,

Thanks

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