PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
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nathrao""“This is a pro-employee measure being pursued by the government and goes beyond the reduction in the five-year th reshold for continuous service that employee unions had sought in recent years,” he said..""
Implementation of these welfare measures in the unorganised sector will be of great importance.
organised sector can be monitored and legal remedies applied to enforce these welfare measures, but " mom and pop" outfits employing small number of workers on hire and fire basis also need to comply for welfare to pervade among all worker communities.
From India, Pune
sandi_joshiGood Job Nanjegowda, sharing this updated news is awesome to all members. Please share the government notification once it come out.
From United Arab Emirates, Dubai
firstname.lastname@example.orgREDUCING PERIOD OF 5 YRS. TO 3 YRS. AND MAKING PORTABILITY OF GRATUITY FROM ONE CO. TO ANOTHER CO.( LIKE PROVIDENT FUND)
The proposal of the Govt. to implement the above will be helpful to the employees as their Gratuity is protected even when they resign from one Co. before 5 yrs. & they can accumulate their Services for Gratuity in the New Co.,
Most Cos. have arrangements/tie-up with LIC for disbursing Gratuity after 5 yrs. service only. In case of PF., all Cos. are obliged to intimate PF Office reg. Addition & Separation of employees enabling PF Office to continue PF Membership & benefit when a person Leave old Co. & join New Co.,
If the Govt. measure should be beneficial to the employee; then why min. 3 yrs.service. It can be one year. If it succeeds, the employees will have to work for atleast one year in a Co., This will oblige all Cos. & LIC to arrange for transfer etc., as in the case of E.P.F.
LET US HOPE, GOVT. WILL CONSIDER BENEFIT TO THE EMPLOYEES AND MAKE MIN. SERVICE AS ONE YEAR
HR Consultant. 23.12.15.
From India, Mumbai
yrshirkeVery interesting development,if passes great relief to Employees .One thing I have not understood when the employee change the job with 20-30% rise in basic + allowances ,than difference who & how to calculate /Extra expenditure will pay .
From India, Mumbai
pkniloseyThe basic purpose of gratuity was to reward the employees for their long term loyal service to the organization. Reducing the number of years for eligibility to gratuity defeats that purpose. If people are keen for mobility vis-a-vis long service, then why force the employer to pay gratuity at all. Do away with this requirement totally. Stop gratuity and let the employees negotiate their CTC. Else, it is unfair to employers - asking them to pay gratuity for a short term employment.
From Qatar, Doha
asbhatI think the basic purpose is not to reward the employees for long term loyal service to one organisation. It is an employee benefit law and ought to be looked at that way. Gratuity (like PF) is for providing a lump sum to the retiring employee so that he can can retire for a contented life. (whether the employee achieves it or not in the inflationary economy like ours is another issue, though).
Besides now a days employers factor it as CTC when the employees join. If they have factored a cost they might jolly well pay / transfer it to the subsequent employer. Besides in any case employers provide for gratuity either by a mere charge on profit (without funding it) or they actually fund it to LIC. What happens to that funding when an employee leaves within 5 years? It comes back to the employer (adjusted from his next year's funding).
From India, Pune