May I know more information or a link to any government official site that discusses Service Compensation and Gratuity payments as statutory payments according to the State Act? As per my knowledge, can you confirm if the below information is correct and appropriate?
Service Compensation and Gratuity in Andhra Pradesh
Employees who are in the AP state will be paid service compensation if their service is more than 1 year but less than 4 years and 10 months. Employees whose service is more than 4 years and 10 months will be covered under the Gratuity Act, not service compensation.
While service is calculated, it is from the date of joining to the date of leaving and not the period you were at AP. If and only if an employee's working base location is Andhra Pradesh and the employee is quitting from Andhra Pradesh, the employee will be eligible for service compensation.
Service Compensation Calculation Formula
The formula is as follows: Gross (except for the additional allowance) x 15/30 x number of years served.
What if there is no policy in my company?
Regards,
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1Service Compensation and Gratuity in Andhra Pradesh
Employees who are in the AP state will be paid service compensation if their service is more than 1 year but less than 4 years and 10 months. Employees whose service is more than 4 years and 10 months will be covered under the Gratuity Act, not service compensation.
While service is calculated, it is from the date of joining to the date of leaving and not the period you were at AP. If and only if an employee's working base location is Andhra Pradesh and the employee is quitting from Andhra Pradesh, the employee will be eligible for service compensation.
Service Compensation Calculation Formula
The formula is as follows: Gross (except for the additional allowance) x 15/30 x number of years served.
What if there is no policy in my company?
Regards,
Acknowledge(1)Amend(0)
We are a small export house manufacturing Leather Handbags and Artificial Jewellery in New Delhi. Currently, we do not have many orders, so we are planning to lay off certain employees.
My Queries
1. If we lay off employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more?
2. If any employee is employed for 4 years and 4 months, what do we have to pay them: Service Compensation or Gratuity or both?
3. If any employee is employed for less than a year, do we have to pay Service Compensation?
4. Please, can we have a service compensation calculation, or do we have to follow the same calculation as Gratuity?
5. Can we have documents supporting rules, laws, and orders passed to support the decision?
Thanks.
From India, New Delhi
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My Queries
1. If we lay off employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more?
2. If any employee is employed for 4 years and 4 months, what do we have to pay them: Service Compensation or Gratuity or both?
3. If any employee is employed for less than a year, do we have to pay Service Compensation?
4. Please, can we have a service compensation calculation, or do we have to follow the same calculation as Gratuity?
5. Can we have documents supporting rules, laws, and orders passed to support the decision?
Thanks.
From India, New Delhi
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