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Brief on Payment of Gratuity Act (Amendment) Act, 2018
From India, Surat

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I am told by someone in the PF department that if an employee has resigned from an institution he should not be re-employed in the same institution as a fresh employee with fresh salary scale before a minimum of three months. Immediately after the resignation and getting all his benefits like gratuity, if he is re-appointed in the same institution it would be construed that the resignation was meant only to collect the gratuity and PF contribution.
Therefore it was advised that if one wants to re-employ the same person who resigned from Job it should be done only after a break of a minimum of three months. What is the legal side of this opinion.
Xavi.
From India, Chandigarh
Regarding paentnof Gratuity Act it is good that the ceiling has been enhanced and also appreciate the government stand not to accede.to the request for retrospect effect considering the side of the establishment.

Thanks Rajan
From India, Faridabad
Thank you very much for responding to my query. But however, it seems that I failed to put across the exact question in my mind. Therefore I wish to emphasis on the key issue of my query: that is to say ; Is it expedient for an employer to re-appoint an employee who has resigned, as a fresh employee in the same company, without having a break of a minimum of three months? Or is that OK to do ? Will there be any legal complications?
Thanking you, Xavi.
From India, Chandigarh
When a person leaves his employment and draws his PF,Gratuity etc, his relation with company in that employment ceases.If he rejoins after a small gap, it will be treated as a fresh contract of employment.
I am not aware of any such stipulated gap of three months before taking an employee back.
Question of treating the period of absence before joining will come up,if company wants to allow continuity of service on rejoining..
From India, Pune
Dear Fr. Xavier,

PF Commissioner or any other Govt. Body cannot detect terms whether to reemploy any workman / employee or not and duration of reemployment. It is employer's prerogative, when and whether to reemploy or not. No body can interfere. Moreover, it is employee's wish and money. He/she is the sole authority and can take any independent decision. if unemployed, Govt. is not going to feed him or his family.
PF rule is if the Member is unemployed for more than 60 days, than only he / she can apply for withdrawal of PF accumulations in form no. 19 & 10 C. If he or she reemployed within a period of 60 days than he / she will have to continue PF membership with same existing PF A/c. no.
Therefore the person from PF dept. wanted to convey you not to rehire person within 3 months. The reason is 60 days waiting period, HR will take around 15 days to submit the claim (sometimes 2 months also depending upon organisation / HR culture) and finally PF dept. will process the claim between 15 days to 1 month, so total 3 months.

Hope your doubt is clear now.

Suresh
From India, Thane
Dear Friends,

This thread is on brief on Payment Of Gratuity Act (Amendment) Act, 2018, but the discussion is on some different topic.

My question to the thread initiator, why there is a need of such brief note and what is the authenticity of it?
From India, Mumbai
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