Discriminatory Amendment in Gratuity Rules

Winners or Sinners

The government today notified doubling of the limit of tax-free gratuity to Rs 20 lakh in private sector. But it is totally silent on effective date for payment.  It says that act has come into force on 29th of March 2018. It appears to me that enhanced amount of gratuity will be payable to only those employees  who retire on or after 29th March 2018. Let us however wait till final circular comes out.

News on Gratuity Notification

Click HERE to See How UPA government had cheated Bankers in year 2010

The notification follows changes in the Payment of Gratuity Act which had empowered the government to fix the ceiling of the retirement benefit through an executive order.

The amendment bill approved by Parliament earlier in the month had also empowered the government to fix the period of maternity leave.

Last time ceiling was revised from 01.01.2006 for central government employees but staff of banks and other establishment got this benefit from May 2010. Due this employees who retired from services from January 2006 to April 2010 were not paid enhanced gratuity. This was  totally a step towards discrimination and injustice.

Unfortunately  aggrieved staff and their trade union leaders digested this dose of injustice .Even a Mother does not feed her lovely child until he or she cries. This is a natural law. As such government took it as right to allow discriminatory treatment for various class of employees who deserve uniformity in matters like gratuity and pension.

Some people are cursing BJP and some are cursing Narendra Modi Prime Minister of the country. Some are threatening that they will not cast vote  in favour of BJP in 2019 as if other parties have promised them to enhance their salaries and perks by 100%. They do not remember how they were treated and cheated during UPA government in matters related to wage hike or gratuity ceiling enhancement or pension updation.

Some left minded employees who are called as protector of bank staff are talking against FRDI Bill or against privatisation of banks or against imagine mergers plan. They ignore key demands like uniformity in hike in wages or in pension or in gratuity . It is only because they are selfish and more often than not use bankers in fulfilling their political agenda only. Old bankers  know it better.

Therefore I disagree with their senseless and mindless conclusion that this government is against working class and hence should be voted out. This may be agenda of defeated politicians  but not that of bankers. Bankers have to and should focus on their demand only whosoever may be leading the government.  Aggrieved section of staff cannot afford swallow the poison of injustice only to take revenge in next election. Moreover government  cannot afford to be insensitive toward absolutely  genuine demands of working class people.

Trade unions are only legal and authorised body to talk on behalf of bank staff and none others. These leaders did not protest in the year 2010 when UPA GOVT committed sin of denying enhanced gratuity to bankers who retired from BANK or private  companies during period 2006 to 2010. Once it is accepted without protest from any corner for years , rule of injustice becomes a practice.   This government too committed the same sin this time by denying enhanced gratuity to bankers who retired ftom 1.1.2016 to 29.03.2018

There is no direct role of government or in fact very little role to play  as regards wage hike pertaining  to bank or insurance staff is concerned. In fact this is the first government in history of bank bipartite settlement  which took initiative at its own two years before the due date of Bipartite Settlement to ensure timely finalization and timely execution of wage accord for bank employees . 

Unfortunately  UFBU and IBA as usual were in deep slumber for last two years and in fact they are still sleeping despite all humiliating postings on social sites against them. Members of We Bankers are also on war path but it is also confined in a very very small and negligible section of bankers Need of the hour is that all sections of bsnk staff join hands and start an agitation till justice is achieved.

In fact all staff of all departments  , banks, insurance companies, PSUs, pvt companies etc  who are not coming under ambit of 7th pay commission  are cheated and aggrieved because of discriminatory  change in gratuity law.

Some staff have initiated petition in change.org and asking for more and more signatures.  This will serve no purpose at all. Such petitions never reach the addressees. This gives gain to promoters of the  site called as change.org. Such petitions have been in circulation since long on many different subjects. Government is unaware of such petitions and hence these petitions do not result in fruitful solution. 

To get sucess in desired target/ goal , all trade unions will have to call indefinite strike atter  giving the due notice or without notice.  Only registered unions representing considerably number of staff can give a strike call. And without indefinite strike we cannot stop discriminatory  acts of any government. 

It is observed that government  does not understand and act till the agitation become restless, violent and disturbing peace of society. Government  does not come in senses till all TV channels start speaking against government  and till it smells severe erosion in its vote bank. I DO not advocate such disturbing agitation but the agitation must be whole hearted, powerful,  consistent and supported by every staff of the country who feel cheated by the ssid discriminatory  act.

UPA government  had cheated staff in 2010 by denying benefits of enhanced  gratuity who retired from 2006 till 2010. Similarly  this government has denied enhanced gratuity to those staff who retired in between 1.1.16 to 29.03.2018. A little better this govt is . 

If Congress party had supported the bill this could have been passed in 2017 itself. We are sufferer due to non functioning of parliament too. Parties are more interested in their survival than on merits and demerits of a bill passed in Parliament .

Without strong protest and consistent agitation by bankers along with other aggrieved  staff groups,  there is no hope at all for any change in act. 

Only trade unions are authorised to talk to IBA and GOI on behalf of bank staff. Unfortunately  IBA and UFBU will seldom take any hard step for justice. They are more interested in their political and self interest oriented motives. It is pity that lakh of bank staff are silent spectators of their Chirharan.

When this government can do something  for central govt employees without any such demand from central govt employees, they can do so for others too. It all depends whether we are weeping in closed room or crying loudly before our trade unions who are at the root of àll such discriminatory acts. We bankers have to remain positive towards present government and there is no reason that this government  will ignore us like past UPA government 

Bank staff normally  cry on Facebook and in WhatsApp  groups regarding injustice meted out to them. They post abusing quotes snd pictures on Facebook against government or against Modi. Such abusing quotes will never prove fruitful. They will have to build pressure on their leaders and simultaneously  continue  their war against injustice  on social sites. They may resign from their unions in mass if needed. They will have to force their leaders by hook or by crook to start mass and effective action against injustice quickly.

I hope leaders of various  organisations of retired and working staff will also shed their personal and organisational ego and take United action to stop reign of injustice perpetrated by this government.  I have full confidence  that Modi government  will understand it and take appropriate  corrective  action soon. Need of the hour is make them aware about defects of the act passed.

Do Not Force Employees To Approach Supreme Court

Following  is self explicit message from AIBEA

ALL INDIA BANK EMPLOYEES' ASSOCIATION
Central Office:  “PRABHAT NIVAS”    Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522,   Fax: 4500 2191, 2535 8853   Web: www.aibea.in
e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

CIRCULAR NO.28/46/2018/9                                                       29-3-2018

TO ALL UNITS AND MEMBERS:

Dear Comrades,

• Gratuity Act amended by Parliament and gazetted
• Labour Ministry also issues their Notification
• Maximum under Gratuity Act revised to Rs. 20 lacs 
• Eligibility w.e.f. 29-3-2018

Revision and increase in the ceiling under Gratuity Act has been an important demand of the Central Trade Unions.  It was one of the demands under the common charter.  On 2-9-2015 and 2-9-2016, entire working class went on strike on this common charter as decided by the National Trade Union Convention.  More 15 crore workers went on strike. We are proud that AIBEA and AIBOA joined this strike call.  It could not be observed as UFBU strike because some of the unions did not agree to join these strikes.

But the demand was included in the UFBU strike on 28-2-2017 and 22-8-2017.

As a result of these massive strike actions by the working class, the Government agreed to increase the ceiling to Rs. 20 lacs.  However, this required necessary amendment to the Gratuity Act and approved by the Parliament.

Accordingly, the Government brought the Bill but it could not be passed in the last leg of the Parliament session.  Now the Bill has been approved by both the Houses of Parliament.

As per the amendment, the Government has been empowered to issue Notifications to revise the Gratuity amount ceiling under the Act instead of approaching the Parliament every time for revision in the amount.

We are happy that the Bill as approved by the Parliament has been given accent by the President of India and today the Gazette notification to this effect has been issued.

We are further happy to inform that based on this amendment, the Ministry of Labour has issued their Notification revising and increasing the ceiling to Rs. 20 lacs with effect from 29-3-2018.

Hence for all bank employees and officers retiring from the Bank’s service from today (29-3-2018), their Gratuity eligibility will be calculated under (i) BPS/OSR (without ceiling) and also under the (ii) amended provisions of the Gratuity Act ( with a max. of Rs. 20 lacs) and the higher of the two shall be payable.

With greetings,
                                                                                         Yours Comradely

 C.H. VENKATACHALAM                 

                                                                                                 GENERAL  
SECRETARY

Private or Public bank may go bankrupt , Common men suffer