Industrial Relations And Labour Laws
Assistant Human Resource Manager
Mba In Hr
Human Resource & Indistrial Relation
In your case, the employee is not leaving at his own will but you are terminating his service although officially you will collect resignation letter. If suppose, he does not resign then you should proceed with termination. If an employee is terminated, naturally, he should be paid termination compensation which will again be equal to 15 days pay for every completed year of service (similar to gratuity). Therefore, it is advisable to pay him gratuity. Again, as pointed out by me, as there exists a ruling of court to pay gratuity even if an employee is not eligible as per the Payment of Gratuity Act, it is better to treat his leaving very cordial.
3rd December 2008 From India, Kannur
If you have any new suggestion to what I have posted in reply to Nesh's question you post it. If you are marketing the new website do it in separate forum with a new post. I have also visited the so called site, but I didn't find any thing new from citehr. Yes, I found some postings which were earlier made in citehr. I have also noticed a PPt on ESI many provisions of which are old without reference to the recent amendments.
While making comments ensure that there are so many members in citehr who are highly experienced in Personnel Management/ HR who will hurt.
3rd December 2008 From India, Kannur
In view of the above an emoplyee worked for 120 days during 7 months ,then he will become eligible for Gratuity.
For cmoputing gratuity amount u have to consider fifteen days average pay for all completed year of contiuous service as per sect.4(2) ,as any excess of six months service would be considered for computation.
6th December 2008
Termination compensation means retrenchment compensation payable as per provisions of Industrial Disputes Act. Under the ID Act, if any employee who has been in continuous service of at least one year is retrenched, he shall be given compensation which shall be equal to 15 days average pay for every completed year of service.
Dear Mr. George,
Your interpretation of continuous service as per section 2A is correct. However, the reference to continuous service here will be made inorder to determine whether an employee who has actually been on roll for more than 5 years and ensure whether his service was otherwise interrupted.
8th December 2008 From India, Kannur
If an employee is terminated for misconduct, he is to be paid gratuity provided the misconduct is not of severe nature and the enquiry officer who conducted the domestic enquiry has awarded ' discharge' and not ' dismissal'. In case of dismissal, however, no gratuity is paid and dismissal is made only when the misconduct is of very severe nature.
9th December 2008 From India, Kannur
9th December 2008 From India, New Delhi
Termination of service for gross negligence and misconduct may be dismissal from service. An employee will be dismissed only when the misconduct is of very severe nature for which maximum punishment is to be awarded, say for example, misbehaving/ physical harassment of employees of opposite sex, manhandling others in the office, causing damage to property due to gross negligence etc, whereas, only discharge is awarded for absence from duty, sleeping while on duty, misappropriation of cash (depending upon the amount involved dismissal can also be awarded) etc. In case of discharge, unpaid salary, leave encashment, gratuity etc will be given whereas, nothing is paid if he is dismissed.
10th December 2008 From India, Kannur
Thanks for your efforts. Please let me know two things -
1. As per law an employee becomes eligible for gratuity after how many years, months and days (I think it is 4 years 10 months and some days) Please give the exact duration. Because I think it is not complete 5 years.
2. I want to have sound knowledge of C& B, Labour laws and taxation. Please suggest the name of books where I can found the relevent info.
10th December 2008 From India, Faridabad
Similarly, continuous service has been intrepreted as uninterrupted service and one who has worked at least for 240 days (above the ground) or 190 days (below the ground, say mine) shall be treated as had continuous service.
Adopting this view there seems to be court verdicts allowing an employee to get gratuity provided he had worked for 4 years and 240 days in the fifth year. I do not have any copy of the said verdict. I believe that Madras High Court and Delhi High Court have made ruling as above mentioned.
11th December 2008 From India, Kannur
PF is different in the sense that it is a fund made by way of contribution by employee himself with a share of employer. That will be paid by the Employees Provident Fund Organisation at the time the employee leaves due to any reason including superannuation. Provident Fund Pension is also paid by the EPFO though the amount represents the one contributed by the employer.
19th December 2008 From India, Kannur
thanks for quick reply
i have a small doubt , i came to know when to hr people chating on superannuation saying " we are providing to our employees both pf and superannuatio O! its greate " out of 2 hr's one works in retail business ( provisionals).
my doubt is if the above is true how the bifercation of salary will be eg. we will include pf of the sides in ctc by caculating on basic .24 %
how we will do for superannuation benefits ?
is it only employer obligation to pay the employee like Gratuity?
22nd December 2008 From India, Hyderabad