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rajendra11260@gmail.com
Secretary fisheries, govt. Of U.P.
Through its order dated 20 April 1982 established Fish Farmer Development Agencies registered in Societies Registration Act, 1860 in 17 districts separately & sanctioned 11 posts with around 19 vacancies in each agency. Against the above 19 sanctioned vacancies, the agency employed 19 persons in the agency of district Lucknow, whose nature is as under :
1. 4 employees recruited by the agency directly through employment exchange. 2.15 employees recruited by the agency on deputation from the state's fisheries department. Now above 4 employees recruited by the agency are retiring on superannuation.
Kindly tell whether Gratuity Act is applicable to the agency or not / above 4 employees are entitled to gratuity under Gratuity Act 1972 or not?

From India, undefined
umakanthan53
6018

Central Govt have already notified the societies registered under the Societies Registration Act,1860 as establishments under sec.1(3)(c) of the Payment of Gratuity Act,1972. So the four employees of the Society are eligible to get gratuity under the Act on their retirement.
From India, Salem
rajendra11260@gmail.com
Sir, the department of fishries denies the applicability of the gratuity act because they do not consider the employees appointed on deputation for computing the limit of employees under the said act.
I contend that, after the posts being sanctioned by the government itself, the department is still hiring people on deputation since so many years instead to appointing them on regular basis, just to avoid its liability of payment of gratuity which shall arise once the act becomes applicable. Kindly suggest me a course of action.

From India, undefined
umakanthan53
6018

Dear Rajendra,

The objective and purpose behind forming a Govt institution as a society under the Societies Registration Act is to designate and run it as an autonomous body are to have its own rules and regulations for achieving the objects for which it was created by facilitating financial and administrative flexibility. Filling up of certain sanctioned posts of the society by deputation is either a temporary measure in its formative period or a permanent practice for the limited purpose of facilitating smooth co-ordination between the respective administrative department of the government and the society. In fact, appointment by deputation is a costlier affair as the society has to proportionately contribute to the leave and terminal benefits of the deputed employees also for their tenure of services in the society. Therefore, their services can not be treated as honorary so as to take them out of the staff strength of the society. So, the refusal to include them that too when their deputation is against the original posts of the society for a very long period for the purpose of paying gratuity to the eligible society employees is based on wrong premise. First, bring this to the notice of the Governing Committee. Still no favourable response, better file claims for gratuity before the respective Controlling Authorities under the Payment of Gratuity Act,1972 after their retirement on superannuation.

From India, Salem
Anonymous
Dear Sir,
A person who join service on July1985 in Fish Farmer Development Agency, Raibareli a society of U.P. Fishries Department Registered in Societies Registration Act 1860 and superannuated on July 2016.
Department of Fishries Govt of U.P. Pay gratuity to employee of its society (Fish Farmer Development Agency, Raibareli) from the date of Notification to covered Society under gratuity Act ie September 1996 to date of superannuation July 2016.
Please provide their opinion whether the above employee of Society elligible for gratuity from date of joining July 1985 to date of superannuation July2016 or from date of Notification September 1996 to date of superannuation July 2016.
With Regards
RAJENDRA PRASAD

From India, undefined
umakanthan53
6018

Dear Rajendra Prasad,
Whenever an establishment is brought under the Payment of Gratuity Act, 1972 by means of a notification u/s 1(3)(c) of the Act, the provisions of the Act becomes applicable to the establishment with effect from the very date of such notification only . As such all the employees in the services of the establishment on the date of notification become eligible for the gratuity under the Act up on the termination of their employment. Legally, logically and necessarily, the continuous service rendered by such employees in the establishment prior to the date of notification should also be taken into account for the purpose of gratuity if the termination of their employment happens subsequently. Of course, those employees who retired or resigned from the services of such an establishment prior to the date of notification are not eligible for gratuity as the Act was not applicable to it during their tenure of employment. The situation is similar to that of an establishment not covered by the Payment of Gratuity Act because of the reason of having less than 10 employees on its roll coming under the purview of the Act by virtue of the subsequent increase in the threshold of the numerical strength of the employees.
Any notification by means of a G.O running counter to the provisions of a Law passed by the Legislature would be null and void in Judicial Scrutiny.

From India, Salem
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