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Suresh2511
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Moturajan
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Thread Started by #omupadhyay

Brief on Payment of Gratuity Act (Amendment) Act, 2018
12th June 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.
13th June 2018 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
16th June 2018 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.
16th June 2018 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..
16th June 2018 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
17th June 2018 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?
17th June 2018 From India, Mumbai
I am extremely grateful to all my friends who responded to my query. All the answers were very important and helpful in clarifying the issue. I wish to appreciate very specially Mr. Suresh who found some logical explanation for the "Three months" tenure before appointing a resigned employee with regard to the PF concern. If the person continues to have the same PF account, and if the resignation was just four years after joining the service, the employee who rejoins immediately can claim for the gratuity after one more year saying that he had served the institution for more than five years without interruption and thus is eligible for gratuity.
This might happen when a company has opened its branch near to one's home town and the employee wants to resign from the previous working place to join to the new branch; and if the manager of the first work place is not willing to grant a transfer to an employee, as his service may be very much inevitable for the first place as well. In such instance the employee may resign and soon apply to the new place, and can later claim to have the continuity of service with the evidence of PF account.
Of course there will certainly be laws to protect the company and cleverer lawyers to defend the company.
Thank you for giving me opportunity for such long discussion.
Xavi.
20th June 2018 From India, Chandigarh
Dear Sir,
I have an issue regarding Gratuity payment. One of our employee had joined our Company in the month of Jan 2013 on a certain post later after 3 years he resigned that post and next day itself he was posted for another designation. Now 2 years have passed whether he is eligible for Gratuity payment.
Please help in this regard.
Thanks
Riyaz
25th June 2018 From United States, Duluth
Dear Riyaz,
Have you given him any full & final settlement on his resignation after 3 yrs and or acceptance of resignation letter ? Have you given any fresh appointment letter for his new designation? If not, he is eligible for gratuity payment after 5 yrs. i.e. from 1st January, 2018.
Regards,
Suresh
25th June 2018 From India, Thane
Dear Suresh,
First of all thank you so much for your reply.
There is no any final settlement we were paying him monthly Salary of Rs. 25,000/- for a contract period of 3 years and after resigning earlier job we had provided him an new appointment letter for which he had given the interview as per the advertisement given in the news paper.
Regards,
Riyaz
26th June 2018 From United States, Duluth
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