Employee Compensation - Gratuity

Sir/ Madam,
I had an employee working for almost 9 yrs in our organization. The said employee was on the pay roll for 4 yrs and 2 months, later as he had attained the retirement age he was been allowed to work on voucher basis. Now after 2 yrs the said employee has applied for gratuity however my query is that if he was on payroll only for 4yrs & 2 months is he eligible for gratuity. Presently i do not have his resume and his personnel file, Pls suggest/advice in this case
Thanks & Regards
Hepsiba

Dear Hepsiba
He is eligible for bonus 4 years only.
some cases only eligible for bonus
Ex : 1.Death 2.Retirement, 3.Retrenchment.
Regards
Sampath
Nisarga HR Solutions.
9686254764

Dear Hepsiba,
If your establishment is covered under the Payment of Gratuity Act, 1972 & if this employee has worked for continuously for nine years with or without roll then he is eligible to have gratuity for these nine years from the employer with interest.
R.N.KHOLA
(LL&IR)
Welcome Skylark Associates

He is entitled for retrenchment compensation if he was a workmen and Co had terminated him.If he has resigned he is not eligible for the compensation.
Varghese Mathew

Dear Hepsiba,

Your query in itself is not very clear.What I guess from your query that the employee has been working for almost 9 years in your organization, but certain clarifications are required on the under mentioned points for proper & correct reply.

(i) Whether your organization is covered under the Payment of Gratuity?

(i) Whether he was a regular employee of the organization?

(ii) Whether his pay roll for 4 yrs and 2 months has been included in the period of 9 years or that was separate?

(iii) What was the reason of his conversation as pay roll employee?

(iv) Whether he has received the payment of gratuity for the period of 9 years? As your query for the payment of gratuity is limited to pay roll period of for 4 years & 2 months.

Let me reply your query on the basis of the input you have given presuming that your organization is covered under the Payment of Gratuity. The employee will not be eligible for the payment of gratuity under the Payment of Gratuity Act,1972 for 4 years & 2 months, as gratuity is payable on termination of one's employment after putting in 5 years of continuous service.

The practice of conversation from regular to pay roll or to put to work on voucher basis is nothing but unfair labour practices, which are prohibited & punishable under Section 25T & 25U (Chapter VC ) of the Industrial Disputes Act,1947.

BS Kalsi

Member since Aug 2011