Dear
Just like in cricket when a decision for giving LBW is given by the UMPIRE the benefit of doubt is to be given to the batsmen.Similarly when a doubt arises in the mind of the HR professional to provide/deny a benefit to the Employee the benefit of doubt is to be given to the employee. Gratuity is a legal entitlement and not gratis which all may note.Unpaid Gratuity is covered by Sec 2 (10) of THE BOMBAY LABOUR WELFARE FUND ACT,1953
"unpaid accumulation" means all payments due to the employees but not made to them within a period of three years from the date on which they became due whether before or after the commencement of this Act including the wages, and gratuity legally payable but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952);
.
In accordance with Sec 3 Welfare Fund
(1)The Administrator shall constitute a fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument; all unpaid accumulations shall be paid at such intervals as may be prescribed to the Board, which shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 6A, and the other sums specified in sub-section (2) shall be paid into the Fund.
(2)The Fund shall consist of-
(a)all fines realised from the employees;
(b)unpaid accumulations transferred to the Fund under section 6A;
Sec 7 A deals with Unpaid acumulations and claims thereto:
(1)All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the provision of section 3 shall on such payment, discharge an employer of the liability to make payment to an employee in respect thereof but to the extent only or the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board
The impression that when a person is terminated ,resigns or absconds or severance takes place or does not claim his dues the Employer can appropriate the amounts due the Employee is not the correct approach.These are in the nature of their entitlement.What the employee in the maximum deduct is notice pay if proper notice is not given.
because the Employment market is vibrant Employees as they are being rewarded more are not bothered of their past entitlements.Employers by way of ethics should not take advantage of the situation.
Please note it the Employees money which is in the Employers hands.Such amounts must be immediately transferred to unpaid Salaries Account and after three years deposited with the Welfare Fund.
The above is an essence of Statutory compliance and what is not the employers money but the Employees cannot be retained or illegally enriched.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684.
Just like in cricket when a decision for giving LBW is given by the UMPIRE the benefit of doubt is to be given to the batsmen.Similarly when a doubt arises in the mind of the HR professional to provide/deny a benefit to the Employee the benefit of doubt is to be given to the employee. Gratuity is a legal entitlement and not gratis which all may note.Unpaid Gratuity is covered by Sec 2 (10) of THE BOMBAY LABOUR WELFARE FUND ACT,1953
"unpaid accumulation" means all payments due to the employees but not made to them within a period of three years from the date on which they became due whether before or after the commencement of this Act including the wages, and gratuity legally payable but not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952);
.
In accordance with Sec 3 Welfare Fund
(1)The Administrator shall constitute a fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument; all unpaid accumulations shall be paid at such intervals as may be prescribed to the Board, which shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 6A, and the other sums specified in sub-section (2) shall be paid into the Fund.
(2)The Fund shall consist of-
(a)all fines realised from the employees;
(b)unpaid accumulations transferred to the Fund under section 6A;
Sec 7 A deals with Unpaid acumulations and claims thereto:
(1)All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the provision of section 3 shall on such payment, discharge an employer of the liability to make payment to an employee in respect thereof but to the extent only or the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board
The impression that when a person is terminated ,resigns or absconds or severance takes place or does not claim his dues the Employer can appropriate the amounts due the Employee is not the correct approach.These are in the nature of their entitlement.What the employee in the maximum deduct is notice pay if proper notice is not given.
because the Employment market is vibrant Employees as they are being rewarded more are not bothered of their past entitlements.Employers by way of ethics should not take advantage of the situation.
Please note it the Employees money which is in the Employers hands.Such amounts must be immediately transferred to unpaid Salaries Account and after three years deposited with the Welfare Fund.
The above is an essence of Statutory compliance and what is not the employers money but the Employees cannot be retained or illegally enriched.
With Regards
Advocates & Notaries & Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
-9025792684.