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Monday, December 18, 2017

Good News On Gratuity

After long waiting, The government today on 18th December 2017 introduced bill pertaiing to gratuity in the Lok Sabha that will increase  gratuity limit to an extent that can be availed by employees under a central law.

The Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour minister Santosh Kumar Gangwar in the House.

The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. It is applicable to employees who have completed at least five years of continuous service in an establishment that has ten or more persons.

The details of bill is yet yo be known.

Link to this news is given below 

Copy of comments  posted on Facebook on 19.12.2017 is as follows.

Dear Comrades,

Have some Rude shock in Gratuity front also. 

For the past 3 months there were news articles and announcement of increasing Gratuity ceiling from '10 Lakh' to '20 Lakh' for Public sector and private sector employees by way of amending the THE PAYMENT OF GRATUITY ACT, 1972.

Today The Payment of Gratuity (Amendment) Bill, 2017 to amend the THE PAYMENT OF GRATUITY ACT, 1972 has been introduced in Lok Sabha.

As a rude shock to all our expectations the word "ten Lakh" is replaced with "amount as may be notified by the Central Government from time to time".

i.e. our gratuity ceiling is not increased to 20 Lakh but at the same time the already existing legal protection to claim 10 lakh as Gratuity is removed.  

The amended section 4(3) would be like this

" Sec 4(3) The amount of gratuity payable to an employee shall not exceed "such amount as may be notified by the Central Government from time to time".

So once the law is enacted the Central govt will become all powerful to decide the Gratuity amount for every employee of an organisation. 

This is a clear betrayal and abridgment of our rights. There is NO assurance in the bill that Govt will increase the Gratuity. 

Hope comrades can understand the consequences of the said move. Please dont believe the Govt which introduced FRDI, will increase Gratuity. 

kindly do the needful to ensure that the word "twenty Lakh" is incorporated in the bill.

I'm attaching the amendment bill as  for your reference.

Rest is up to the leaders and cadres.


Sivakumar Duraipandy

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