Accepting someone as an employee under one act/legislation (EPF) and denying the same under other act/legislation (Gratuity) ......who will agree with this?
If such type of stand is taken by the Employer, the court will not only disapprove it but may also pass strictures against the Employer as it is nothing but manipulating the terms of the legislation.
Denying this guy of Gratuity benefits on CSR ground can not be accepted as he was getting wages and not any stipend or scholarship.
I have got sponsorship agreement signed with future employees where we sponsor them and bear the training or educational expenses. In such cases we pay them stipend or scholarship, we dont pay salary (wages).
Even if we accept that Employer's intention was not wrong rather it was their goodwill gesture to cover the guy under EPF, I would say the Employer was not properly advised on the subject and has chosen a wrong path to execute their idea.
If such type of stand is taken by the Employer, the court will not only disapprove it but may also pass strictures against the Employer as it is nothing but manipulating the terms of the legislation.
Denying this guy of Gratuity benefits on CSR ground can not be accepted as he was getting wages and not any stipend or scholarship.
I have got sponsorship agreement signed with future employees where we sponsor them and bear the training or educational expenses. In such cases we pay them stipend or scholarship, we dont pay salary (wages).
Even if we accept that Employer's intention was not wrong rather it was their goodwill gesture to cover the guy under EPF, I would say the Employer was not properly advised on the subject and has chosen a wrong path to execute their idea.