Management Consultancy

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Dear All, We are an Non -profit organisation registered under societies registration act. We involved in various activities like sustainable development , child & women development etc.We employ casual labours in our projects who are given monthly consolidated salary, yearly bonus( one month salary ) and no leave wages. Now, one of our casual employee who worked as Gardener with us for about 4 years now attained 58, and he wants to leave job due to his physical condition and on own decision and our Management wants to give him an ex gratia amount considering his loyal service.
Kindly advice, what is the amount we can give him and on what basis? What are the legal requirements we have to comply with his appointment and retirement?

From India, Madras
Few queries.
How many employees are there in your concern/organization?
Are you covering EPF/ESI etc?
Do you have any bye-laws governing your body/organization?
Is the casual employee in your organization governed by appointment letter and relieving letter etc?
But casual employee also needs to be paid all statutory benefits, as such you can request your management to pay him a handsome amount of at least four months salary ( in lieu of gratuity/ as ex-gratia)

From India, Hyderabad
Thank you for the reply.
There are about 100 employees working here in part time, casuals and on rolls.
We dont cover ESI but given EPF to the employees on rolls. Regarding other statutory benefits. we will pay diwali ex-gratia to people and no appointment & relieving letters concept for casual labours.

From India, Madras
Dear Jayarani,
If you are having 100 employees and not covering ESI it is a non-compliance under statute.
What is the reason for not contributing ESI?
Please do it immediately.
Ex-gratia in your workmen's case can be in the likes of Gratuity Act payment

From India, Hyderabad
Dear Jayarani, As you are registered under the Societies Registration Act and employs approx. 100, the Payment of Gratuity Act 1972 would be applicable. Provided the Gardener has worked for 4 years and six months or less, you need not pay him gratuity. But where the appointment even on casual basis exceeds 4 years and six months gratuity is liable, where such appointment is continuous and the employee has worked for at least 240 days in a year. So you will have to reckon such liability in other cases.
As regards ESI, it is applicable if your operations are in ESI covered areas. As a social welfare agency, I presume your majority of field staff would be in rural or semi-urban areas where there is no coverage of ESI. Pl check. Since you are covering them under PF , there is no issue.
As regards the gardener, you may consider paying 2.5 to three times monthly salary in full and final settlement.

From India, Mumbai
Thank you for the reply. Just want to know if there is any logic behind 2.5 to 3 months salary and why not below or more . Regards, Jayarani J
From India, Madras
Dear Jayarani: The logic in 2.5 to 3 months salary, is looking to the amount equivalent to gratuity (salary X 2.5), though it is not a legal liability. When you are gracious enough to give him something extra, it has to be good enough.
From India, Mumbai
It is always advisable to pay workmen more than their due (who have kept the business going for long terms) and keep them happy
From India, Hyderabad
Dear All, Can anyone in this forum help me with the policy for casual labours . Its urgent pls
From India, Madras
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