Payment Of Gratuity - Manufacturing Units

Good Morning All,
If an organisation is having manufacturing unit in one state and corporate office in another state. Under which jurisdiction will the gratuity rules apply for the organisation. State rules or central rules for the payment of gratuity? Plz guide me.
With regards,
Muralikrishna

Dear Muralikrishna,
In my opinion State Rules will prevail as in your case the appropriate Govt is State as you do not have branches in more than one State.For more details you may also go through section 2(a) of the Payment of Gratuity Act, 1972.

R.N.Khola

Dear Sir,
Manufacturing unit in one state and corporate office in another state, one Govt. Official(Central) sent letter that our factory shall be governed by central rules as per Payment of Gratuity Act.
Pl. guide what to do.
regards
T.Murali Krishna

Dear T.Murali Krishna,
Then give reply as per the definition of the appropriate Govt. or if you consider that the central Govt. officer is correct then in that case go ahead in doing compliance as per central Govt. Rules.

R.N.Khola


(Labour Law & Legal Consultants)

Hello Murli,
If the rules of your company's Gratuity Fund is governed by Payment of Gratuity Act then the same yardstick shall apply both for your manufacturing unit as well as corporate office. In a company there cannot be separate rules for payment of Gratuity only because they are in different states. But insofar the compliance of statutory matters like submission of returns, maintenance of records of gratuity payment ,visit by inspectors will happen at state level . To be more explicit your manufacturing unit and corporate office will maintain records of employees' gratuity payment, returns for their respective units only.

Since the payment of Gratuity Act,1972 in a central act, so we should not bound ourself within any specific state. But insofar the compliance of statutory matters like submission of returns, maintenance of records of gratuity payment ,visit by inspectors will happen at state level. We should prefer to get it insured from any reputed insurance company in the interest of employees as well as employer. By which we can facilitate our employees with more financial in case of mishappening.

Hi,
is it possible to include gratuity and leave salary in monthly salary after completion of one year, please help me with your suggestions

Dear friend,
Gratuity shall be applicable 2 both manufacturing as well as corporate office under the payment of gratuity Act, 1972. 4 maintining records respective state rule shall be applicable as the case may be

Hi Mahesh,
This is Syed, please suggest me
my manager advised me to pay gratuity and leave salary in monthly salary for those who have completed one year and revise the contract accourdingly, please advice is it acceptable as per law.
as per GCC law, employee will be eligible for leave salary and gratuity after completion of one year