Dear Meharwade,
As per Section 4(1) of The Payment Of Gratuity Act, 1972, gratuity is 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(b) on his retirement or resignation or (c) on his death or disablement due to the 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.
The gratuity payable to an employee may be wholly or partially forfeited (i) if the services of an employee is terminated for his riotous or disorderly conduct or any other act of violence or (ii) for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
There is no separate Act or rule governing the encasement of Els or PLs, it is purely depend upon organization to organization. But certainly some of the labour laws provides for encasement of Els or PLs. As such you need to check as to which of the Act is applicable to your company and decide the same.
BS Kalsi
Member since Aug 2011