compensation - Rightsofemployees.com

Paternity leave in India

Rightsofemployees — Thu, 18 Feb 2021 09:59:55 +0000

Paternity Leave in India

A male Government servant (including an apprentice) with less than two surviving children, may be granted Paternity Leave by an authority competent to grant leave for a period of 15 days, during the up to 15 days before, or up to six months from the date of delivery of the child.

During such period of 15 days, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. The paternity Leave may be combined with leave of any other kind.

The paternity leave shall not be debited against the leave account. If Paternity Leave is not availed of within the period such leave shall be treated as lapsed.

NOTE:- The Paternity Leave shall not normally be refused under any circumstances.

Paternity Leave for Child Adoption:-

A male Government servant (including an apprentice) with less than two surviving children, on valid adoption of a child below the age of one year may be granted Paternity Leave for a period of 15 days within a period of six months from the date of valid adoption.

During such period of 15 days, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. The paternity leave may be combined with leave of any other kind.

The Paternity Leave shall not be debited against the leave account. If Paternity leave is not availed of within the period specified in sub-rule (1) such leave shall be treated as lapsed.

Note:- “Child” for the purpose of this rule will include a child taken as ward by the Government servant, under the Guardians and Wards Act, 1890 or the personal law applicable to that Government servant, provided such a ward lives with the Government servant and is treated as a member of the family and provided such Government servant has, through a special will, conferred upon that ward the same status as that of a natural born child.

Source:- CENTRAL CIVIL SERVICES (LEAVE) RULES, 1972 ⁴[43-A,⁵[43-AA.

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Working Hours in Office

Rightsofemployees — Mon, 29 Jan 2018 02:27:18 +0000

Hours of work. –

No adult shall be employed or allowed to work about the business of an establishment for more than nine hours on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly.

Provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed, any adult employee may be allowed or required to work for more than the hours fixed in this section, but not exceeding 54 hours in any week subject to the conditions that the aggregate hours so worked shall not exceed 150 hours in a year.

Provided further that advance intimation of at least three days in this respect has been given in the prescribed manner to the Chief Inspector and that any person employed on overtime shall be entitled to remuneration for
such overtime work at twice the rate of his normal remuneration calculated by the hour.

Gratuity

Rightsofemployees — Sun, 28 Jan 2018 03:02:46 +0000

Provisions for the payment of Gratuity to the employees as prescribed under the Act

Gratuity Benefits in India:Payment of gratuity Act 1972 extends to the whole of India and is applicable to all factories, mines, oilfields, plantations, ports, railway companies etc.

Payment of Gratuity to employees a statutory duty on an employer

The Payment of Gratuity Act was enacted in 1972 and applies to every shop or establishment within the meaning of law for the time being in force in a State in which 10 or more persons are employed or were employed on any day of the preceding 12 months. This Act provides a social security cause with it and has been enacted from the word “gratuitous”. It is a form of gratitude by the employer towards the employee who has served his organisation for 5 years or more.^[1]

Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than five years – (a) On his superannuation, or (b) On his retirement, resignation, or (c) On his death or disablement due to accident or disease. An employer will be liable to pay gratuity to the legal heirs/nominees of the deceased employee even if the employee had not completed five years of service. For every completed year of service or part thereof in excess of six months the employer shall pay the gratuity.

Continuous Service Means:

Section 2A of the Act provides the definition of “continuous service” which says that service been uninterrupted for that period, interruption which may on account of sickness, accident, leave, absence from duty without leave not being absence in respect of which an order treating the absence as break in service has been passed. For the period of one year employee is deemed to have rendered continuous service for 240 days.

Formula for the calculation of Gratuity:

Gratuity = Last drawn month’s salary x 15days

_____________________ x Number of service years completed

Gratuity is calculated at 15 days wages last drawn by the employee for each completed year of service. The monthly wage is divided by 26 and multiplied by 15. In computing a completed year of service the period in excess of six months shall be taken as a full year.

For seasonal workers the formula for the calculation of gratuity is

Gratuity = Last drawn month’s salary x 7days

_____________________ x Number of service years completed

Maximum amount of gratuity payable under the Act is Rs. 10 lakhs ^[2] w.e.f. January 1, 2007.

Forfeiture of Gratuity:

The gratuity payable to an employee shall be wholly forfeited for the following reason mentioned:

If the service of such employee has been terminated for his riotous or disorderly conduct or any other act of violence on his part; or
If the service of such employee is terminated for any act which constitutes an offence involving moral turpitude provided that such offence is committed by him in the course of his employment. In order to forfeit gratuity of an employee, there must be termination order containing charges as established to the effect that the employee was guilty of any of the aforesaid misconducts. In one case, it has been held that in the absence of termination order containing any of the above allegations, the gratuity of an employee cannot be forfeited.

Duty of employer to pay gratuity and mode for payment:

Section 4 of the Act mentions the obligation on an employer of an establishment to consider the case of each employee in the matter of payment of gratuity to him. The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom the gratuity is payable. If the amount of gratuity payable under the section is not paid by the employer within the period specified, from the date on which the gratuity becomes payable he will have to pay simple interest on it at the rate not exceeding the rate notified by the Central Government from time to time.

The mode for the payment of gratuity is prescribed under section 9 of the Payment of Gratuity Act, 1972. The said section contemplates that gratuity payable under the Act should be paid in cash, or if so desired by the payee, by demand draft or bank cheque to the eligible employee, nominee or legal heir, as the case may be.

Penalties:

Imprisonment for 6 months or fine upto Rs. 10,000 fir avoiding to make payment by making false statement or representation
Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or Rules

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Provident Fund act (PF)

Rightsofemployees — Sun, 28 Jan 2018 02:49:52 +0000

Amendments In The Employees’ Provident Fund Act In India

The Ministry of Labour and Employment, Government of India has, with effect from 1 September 2014, brought into force several important amendments to the schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) i.e. (i) The Employees’ Provident Funds Scheme, 1952 (“PF Scheme”); (ii) The Employees’ Pension Scheme, 1995 (“Pension Scheme”); and (iii) The Employees’ Deposit-linked Insurance Scheme, 1976 (“Insurance Scheme”).

Key Amendments

PF Scheme

- The definition of ‘excluded employee’ has been amended whereby the members drawing wages exceeding INR 15,000 per month are excluded from the provisions of the PF Scheme. Accordingly, the wage ceiling for an employee to be eligible for the PF Scheme has been increased from INR 6,500 per month to INR 15,000 per month.

Pension Scheme

New members (joining on or after 1 September 2014) drawing wages exceeding INR 15,000 per month shall not be eligible to voluntarily contribute to the Pension Scheme.
The maximum pensionable salary for the purpose of determining the monthly pension has been revised from INR 6,500 to INR 15,000 per month.
The pensionable salary shall be calculated on the average monthly pay for the contribution period of the last 60 months (earlier 12 months) preceding the date of exit from the membership.
The monthly pension for any existing or future member shall not be less than INR 1,000 for the financial year 2014-15.

Insurance Scheme

The contribution payable under the Insurance Scheme shall now be calculated on a monthly pay of INR 15,000, instead of INR 6,500.
In the event of death of a member (on or after 1 September 2014), the assurance benefits available under the Insurance Scheme has been increased by twenty percent (20%) in addition to the already admissible benefits.

Implications of the Amendments

The amendments to the three schemes by the Government of India, post the proposal made by the Union Minister of Finance in his Union Budget speech (for the financial year 2014-2015), have enhanced the applicability, scope and benefits provided to employees under the EPF Act. However, at the same time, it has also increased the liability of the employers who would now be responsible to enroll additional eligible employees and to contribute on the increased statutory wage ceiling.

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Entitled for double wages of that national holiday in which you have worked.

Rightsofemployees — Fri, 26 Jan 2018 14:52:22 +0000

Republic Day (January 26), Independence Day (August 15) and Gandhi Jayanti (October 2) are the three national holidays observed in India. On these days all institutions, irrespective of under which law they are covered, or whether they are public or private organizations or MNCs should necessarily remain closed.

But if for some reasons, on these national holidays if the employers wish to keep their organization functional, they need to obtain prior permission from concerned authorities. Also, the workers who work in organization on these national holidays are entitled to receive double wages for the day. (Though these national holidays are a matter of Central legislature, some states do have made provisions for compensatory leave to the workers who have worked on these national holidays, and this is over and above double wages for that day.

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