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meharwade
6

Hi All
A person serving 6th year in same company, and if company terminates him creating some any reason he would be liable to get all the Compensation & Benefits like Gratuity & Leave encash.
Please let me know
Regards
Meharwade

From India, Bangalore
jeevarathnam
633

Once if any person completes 5 years of continuous service then He/She is eligible for Gratuity irrespective of termination or resignation. Leave encashment is also applicable for all the persons if any leaves are left out
From India, Bangalore
JOYSON BAPTIST PEREIRA
2

Yes, employer can forfeit gratuity even if employee has completed 5 years in following cases:
If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
If the service of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.
Please note that above act should have been committed by employee during his employment. There should be a proper enquiry held after which employee was found guilty for aforesaid act or misconduct. Once proved guilty, employer should issue termination note to employee describing about his misconduct.

From India, Bangalore
9871103011
455

Dear Meharwade,

As per Section 4(1) of The Payment Of Gratuity Act, 1972, gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years (a) on his superannuation(b) on his retirement or resignation or (c) on his death or disablement due to the accident or disease.

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

The gratuity payable to an employee may be wholly or partially forfeited (i) if the services of an employee is terminated for his riotous or disorderly conduct or any other act of violence or (ii) for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

There is no separate Act or rule governing the encasement of Els or PLs, it is purely depend upon organization to organization. But certainly some of the labour laws provides for encasement of Els or PLs. As such you need to check as to which of the Act is applicable to your company and decide the same.

BS Kalsi

Member since Aug 2011

From India, Mumbai
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