Gratuity will be granted for good, efficient and faithful service to whole-time Employees of the Company, including the Chief Executive and full time Functional Directors, but shall exclude the following :-
(i) Casual and non-regular workmen,
(ii) Govt. servants and others employed on deputation terms,
(iii) Persons engaged on contract basis,
(iv) Apprentices and trainees, and
(v) Reemployed persons (Reemployed person means a person employed in the Company
on attaining the age of superannuation).
PAYMENT OF GRATUITY:
(1) Gratuity shall be payable to an employee on the termination of his employment after he
has rendered continuous service for not less than five years :-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c ) on his death or disablement due to accident or disease.
Provided that the completion of continuous service of five years shall not be necessary
where the termination of the employment of any employee is due to death or disablement.
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominee or heir is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Calculation of Gratuity - Fifteen days wages for every completed year of service have to be calculated on the basis of wages paid to an employee for the month divided by twenty – six days and the quotient multiplied by fifteen days.
Calculation of Gratuity shall be made as under:
((Pay+DA+Personal Pay If exist) x 15 x No. of completed years of service) / 26= Gratuity (From 01.01.2007 it was increased amount from 3.5Lac to 10Lacs max. to be paid)