The Payment of Gratuity Act of 1972 provides social security to employees in India by requiring employers to pay gratuity payments to their employees after they complete at least 5 years of continuous service. The act applies to factories, mines, oilfields, plantations, ports, and shops with more than 10 employees. It entitles employees who have worked for at least 5 years to receive gratuity payments equal to 15 days' wages for each completed year of service. The maximum gratuity payable is Rs. 10 lakh. Employers must make these payments within 30 days of when gratuity becomes due.
Lay-off and Retrenchment –difference between lay-off and
Retrenchment their application, necessary preconditions for their
application, lay-off and retrenchment compensation, special
provisions relating to lay-off, retrenchment, and closure in certain establishments, penalty, and punishment for illegal lay-off or retrenchment, the consequences of illegal lay-off or retrenchment.
Gratuity is an old age retiral social security
benefit. It is a lump sum payment made by an
employer to an employee in consideration of
his past service when the employment is
terminated. In the case of employment coming
to an end due to retirement or superannuation,
it enables the affected employee to meet the
new situation which quite often means a
reduction in earnings or even total stoppage of
earnings. In the case of death of an employee,
it provides much needed financial assistance
to the surviving members of the family. Gratuity
schemes, therefore, serve as instruments of
social security and their significance in a
developing country like India where the general
income level is low cannot be over emphasised.
Presentation will be useful for industry practitioners, students as well as auditors. It provides a quick and easy reference to all the operational provisions of the act.
Lay-off and Retrenchment –difference between lay-off and
Retrenchment their application, necessary preconditions for their
application, lay-off and retrenchment compensation, special
provisions relating to lay-off, retrenchment, and closure in certain establishments, penalty, and punishment for illegal lay-off or retrenchment, the consequences of illegal lay-off or retrenchment.
Gratuity is an old age retiral social security
benefit. It is a lump sum payment made by an
employer to an employee in consideration of
his past service when the employment is
terminated. In the case of employment coming
to an end due to retirement or superannuation,
it enables the affected employee to meet the
new situation which quite often means a
reduction in earnings or even total stoppage of
earnings. In the case of death of an employee,
it provides much needed financial assistance
to the surviving members of the family. Gratuity
schemes, therefore, serve as instruments of
social security and their significance in a
developing country like India where the general
income level is low cannot be over emphasised.
Presentation will be useful for industry practitioners, students as well as auditors. It provides a quick and easy reference to all the operational provisions of the act.
Gratuity is a statutory benefit paid to the employees who have rendered continuous service for at least five years. It is a lump sum amount paid to an employee based on the duration of his total service. The benefit gratuity is payable to an employee on cessation of employment (either by resignation, death, retirement or termination, etc) by taking the last drawn salary as the basis for the calculation. Gratuity is an important form of social security and is in the form of a gratitude provided by the employer to the employees in monetary terms for the services rendered by them to the organization. It is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. Gratuity payment liability of the employer tends to increase with an increase in the salary and tenure of employment. more info visit https://motiveap.blogspot.com/2019/08/gratuity-rules-applicability-payment.html
The ppt has been prepared to deliver lecture in the class.
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Employees’ provident funds and Miscellaneous Provisions Act, 1952kushnabh chhabra
Useful for industry practitioners and students. Crux of the act has been assembled and presented in plain and lucid manner.
Consists of operational part of the act and can be very handy for auditors as well.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
DNA Testing in Civil and Criminal Matters.pptxpatrons legal
Get insights into DNA testing and its application in civil and criminal matters. Find out how it contributes to fair and accurate legal proceedings. For more information: https://www.patronslegal.com/criminal-litigation.html
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
2. OBJECTIVE OF THE ACT
• To provide social security to the employees after retirement
• To act as a social security legislation to the wage earning population
in industries or establishments.
• Envisioned as a reward for those workers who have served for a
long period of time as faithful employees.
• To impose a statutory liability upon employer to provide payment to
employees when they suffer from any physical disability or death
due to any disease or accident arising out of work.
3. APPLICABILITY
• It extends to whole of India.
• It has 15 sections.
• It shall apply to every:
Factory
Mine
Oilfield
Plantation
Port
Shop or such class of establishments, which employs more
than 10 workers
Other establishments which the Central government
specifies
Gratuity means “Gift” or “Token of Appreciation”
4. DEFINITIONSu/s2:
• Appropriate Government: (a) for any establishment or factory under the control of
Centre or having branches in more than one state or oilfield, port, mine, railways – the
Central Government (b) in other cases, the State Government.
• Completed Year of Service: means continuous service for one year.
• Employee: any person employed on wages in a factory, mine, oilfield, railways, port,
plantation ,etc, whether skilled, unskilled or semi-skilled.
• Family: it shall consist of : (a) incase of male employees – himself, wife, children,
dependent parents, dependent inlaws,children of predeceased son (b) incase of
female employees – herself, husband, children, dependent parents, dependent in-
laws, children of deceased son.
• Superannuation: means attainment of the age fixed in the contract or the condition of
service at the age at which the employee shall vacate his office.
• Wages: any emoluments payable to the employee in cash including DA but excluding
bonus, commission , HRA, overtime wages and other allowances.
5. Continuous Service u/s 2A
• Clause 1 – an employee shall be in continuous service if in that period he has
been in uninterrupted service (including sickness leave, accident leave, leave,
layoff, strikes, lockout)
• Cause 2: when an employee is not in continuous service under clause 1, he shall
be deemed to be in continuous service:
(a) For the said one year, if the employee has actually worked under the employer
,during the period of 12 calendar months, for not less than (i) 190 days incase
of employees employed in mines (ii) 240 days, in any other case.
(b) For the said 6 month period, if the employee has actually worked under the
employer ,during the period of 6 calendar months, for not less than (i) 95
days, incase of employees employed in mines (ii)120 days in any other case
6. Sec 4: Payment of Gratuity
Gratuity shall be payable to the employee:
If he has rendered 5 years of continuous service
On his (a) superannuation (b) resignation or retirement (c) on his death or
disablement
At the rate of 15 days wages based on wage rate last drawn by the employee
[(15/26) * no. of years worked * wage rate ]
Gratuity payable shall not exceed INR 10,00,000 (earlier it was INR 3,50,000)
Shall be payable within 30 days from the due date
If the payment is delayed, the employer is liable to pay interest.
The gratuity may be wholly or partially forfeited incase the employee is charged of
wilful omission, negligence causing damage, destruction of property, violence or
disorderly conduct, charged with moral turpitude.
7. Conti…..
Sec 4A : Compulsory Insurance
(1)all the employers must obtain an insurance from the Life Insurance
Corporation or any other prescribed insurer ,for their liability of payment of
gratuity
(2) if the employer has already established an approved gratuity fund,
he maybe exempted from sub section (1),
(3)the employer shall get the company registered with the controlling
authority within the prescribed time
(4) appointment of the Board of Trustees by the appropriate
government
(5)every employer shall be liable to pay the contribution by way of
premium to the approved gratuity fund
(6) any contraventions to sub section 5 will lead to a fine of INR 10,000
and for continuing offence, a penalty of INR 1000 for each day.
8. Conti……..
Sec 6: Nomination
• (1) the employee must appoint a nominee for such purpose
• (2) the employee can distribute the gratuity in more than one nominee
• (3) if the employee has a family, then he should nominate any of the family
members and not an outsider
• (4) nomination can be modified as and when by the employee
• (5) if the nominee predeceases the employee, he has to make a fresh
nomination
• (6) every change in the nomination has to be sent to the employer which
must be kept in a safe custody.
9. • A person eligible for gratuity shall give it in writing to the employer.
• The employer shall determine the amount of gratuity and give a notice in
writing to the employee who is to receive the gratuity when due.
• The employer shall the make the gratuity payment within 30 days when it becomes
due.
• If the amount is not paid during the specified time by the employer, he shall pay a
simple interest for the delayed time at such rate as specified by the Government.
• Incase of any dispute regarding amount of gratuity or the person entitled to receive
gratuity, it shall be paid to the Controlling authority.
• For the disputed case, an investigation shall be undertaken by the controlling
authority (when employee or employer gives an application ) and shall pay the final
amount of gratuity to the employee or his nominee.
• Any aggrieved party can make an appeal to the appropriate government within 60
days from receipt of such orders.
Sec 7 : Determination of Amount ofGratuity
10.
11. Conti….
• Sec 7A-7B: Appointment & Power of Inspectors- The appropriate
government can appoint as many inspectors as it thinks fit for the
purpose of carrying on any investigation or enquiries. They have the power to
conduct investigations, collect evidences, enter the premises, require to
produce the copies , extracts from any registers, records, etc.
• Sec 8: Recovery of Gratuity - The controlling authority , on application from
the aggrieved party, issue a Certificate to the Collector to recover the
amount of gratuity payable from the employer along with the compound
interest thereon.
• Sec 10 : Exemption of employer in certain cases – An employer if charged
with an offence , can be exempted from the liability, if he is able to prove to
the satisfaction of the court: (a) he has used due diligence to enforce this
act (b) the said other person committed the crime without his knowledge
or consent
12. Sec 9: Penalties
CONDITION PENALTY
Knowingly making false statements
or false representation
Imprisonment upto 6
months
Fine upto INR 10,000
Or Both
Any contravention of the provisions
by the Employer
Imprisonment from 6
months upto 1 year
Fine upto INR 20,000
Or Both
13. Taxability of Gratuity Amount :
• Incase of Government employees: Wholly Exempt
• Incase of employees covered under the act:
a) 15 days salary based on salary last drawn for each year of
service
b) INR 10,00,000
c) Gratuity actually received
[The least of the above three is exempt from tax and the
remaining amount is taxable]
14. AMENDMENTS as on 2018
• Incase of Government servants, the upper ceiling on gratuity has
been increased from INR 10 lakhs to INR 20 Lakhs.
• Considering inflation and wage increase, incase of employees of private
sector also – the maximum limit has been extended to INR 20 lakhs.
• Incase of female employees , for the purpose of computing
Continuous Service – maternity leave shall be considered for 26
weeks and not 12 weeks.
15. Gratuity Calculations
Last Drawn Monthly Salary: 45000/-
No of years of Service :7
45000/26 = 1731
1731*15= 25965
25965*7= 181755
Gratuity payable : 181755
16. Last Drawn Monthly Salary: 80000/-
No of years of Service :27
Last Drawn Monthly Salary: 120000/-
No of years of Service :23.9
Last Drawn Monthly Salary: 23000/-
No of years of Service :6.7
Last Drawn Monthly Salary: 40000/-
No of years of Service :20.8
Last Drawn Monthly Salary: 77000/-
No of years of Service :15.5