Payment of Gratuity (Amendment) act, 2009 – amendment in section 2 and insertion of section 13A
An Act to further amend the Payment of Gratuity Act, 1972.
Be it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:—
Short title and commencement
1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2009.
(2) It shall be deemed to have come into force on the 3rd day of April, 1997.
2. In the Payment of Gratuity Act, 1972 (39 of 1972) (hereinafter referred to as ‘the principal Act’), in section 2, for clause (e), the following clause shall be substituted, namely:—
‘(e) “employee” means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;’.
3. After section 13 of the principal Act, the following section shall be inserted, namely:—
“13A. Validation of payment of gratuity – Notwithstanding anything contained in any judgment, decree or order of any court, for the period commencing on and from the 3rd day of April, 1997 and ending on the day on which the Payment of Gratuity (Amendment) Act, 2009, receives the assent of the President, the gratuity shall be payable to an employee in pursuance of the notification of the Government of India in the Ministry of Labour and Employment vide number S.O. 1080, dated the 3rd day of April, 1997 and the said notification shall be valid and shall be deemed always to have been valid as if the Payment of Gratuity (Amendment) Act, 2009 had been in force at all material times and the gratuity shall be payable accordingly:
Provided that nothing contained in this section shall extend, or be construed to extend, to affect any person with any punishment or penalty whatsoever by reason of the non-payment by him of the gratuity during the period specified in this section which shall become due in pursuance of the said notification.”.
Download Payment of Gratuity Amendment Bill 2010
Related Post:-
1. Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh
2. Lok Sabha passes bill to hike gratuity ceiling to Rs. 10 lakh from Rs. 3.50 Lakh
3. Gratuity Limit increased to 10 Lakh as per Income Tax Act and Gratuity Act in Rajya Sabha
Assembly Elections are due in 5 states. Politicians are counting on the freebies and subsidies. Use your vote power properly.
The latest budget has proposed to lower the qualifying age of a senior citizen from 65 to 60. Simultaneously, the exemption limit for senior citizens is increased from Rs.2.40 lakh to Rs.2.50 lakh. A new category of senior citizens (80 and above ) has been announced. On the face of it, these measures promise much but in practice they will deliver little. But are these sufficient to ameliorate the lot of the senior citizens, who as the Finance Minister rightly says, deserve our special attention?. Tax exemptions on higher income are fine but quite obviously they are relevant only to those having matching income. It would be wonderful if a vast majority of senior citizens has taxable income beyond exempted limit. The retirement age in India varies from 58 to 60 in government and private sectors. Pension benefits wherever available will not offset the steep fall in incomes post-retirement . Many benefits that went with their jobs, notably medical benefits, are automatically scaled down or withdrawn. But it is precisely in the advancing years that health care costs will go up. The chance of a major illness impoverishing even a reasonably well off pensioner is real. The sad fact is that many of the today’s senior citizens did not have means and the wherewithal to plan for their retirement during their working years. While focusing on tax exemptions for senior citizens, we humbly request The Hon’ble Prime Minister of India, The Hon’ble Finance Minister of India, The Hon’ble Labour Minister of India, Hon M.Ps, who are well known for justice to all concerned, to consider the genuine demand of the PSU retirees from 1.1.2006 to 23.5.2010 and amend the date of implementation of Increase of Gratuity Ceiling of Rs.10 lakh, effective from 01-01- 2006 instead of 24th May, 2010. This will really help the few senior citizens who have retired since 2006.
Can somone take a lead and file a PIL on behalf all the employees retired from private sector, psu, banks, LIC etc between 1.1.2006 to 23.5.2010. Scribling at various sites is not going to give any result.
As per press reports “Following discovery of Rs 1,731.57 crore in suspense account, the CBT raised rate of interest on provident fund deposits to 9.5 per cent for its 4.71 crore subscribers from 8.5 per cent which is being paid by EPFO since 2005-06”. This is one more reason why for people retired between 1.1.2006 to 23.05.2010 higher Gratuity Ceiling should be made applicable. People retired during the above period received lower interest on their long term savings while facing the silent killer “inflation”.
Our Children will not excuse us if we throw up our hands in despair and not do anything to fight the discrimination. Our Hon MP’s got salary increase with retrospective effect. What is worrying is the unwillingness among certain People, Union leaders,Organizational Heads, Parliamentarians, Judiciary and Print Media, in understanding the issue and joining hands to fight the discrimination.
Respected President of India/Prime Minister/MPs,
I request to exlore possibility to amend the effective date of Gratuity w.e.f.1.1.2006 OR 1.1.2007 (the implementation dates for Central Govt /Central Govt. Undertakings) to all workers/employees of India to protect the DOCTRIN of EQUALITY emphasised in the Constitution of India. Entire world media is watching eagerly whether Govt of India do justice to the aggrieved workers/employees, who served NATION with dedication and waiting to receive positive ORDERS(change of effective date) to perform marriages of daughters and to clear the outstanding debts.
Thanking You,
W.KRISHNA MURTHY,SPL.ASST.,APFDC LTD., HYDERABAD,A.P
PRESIDENT,APFDC EPLOYEES UNION
In successive budgets, the Govt has handed huge concessions to corporates. Between 2007 and 2009, Tax revenue foregone on account of exemptions under corporate income tax amounted to crores. As per press reports, the 2 G Scam alone cost the exchequer Rs.50,000 crores. Experts have placed the size of Black Money Economy at anything between 40 per cent and 50 per cent of the GDP. Then why the Govt is quibbling over the IMPLEMENTATION OF GRATUITY ACT, 2010 w.e.f. 24TH MAY, 2010 FOR PSU/BANKS/ INSURANCE SECTORS. (GOVERNMENT EMPLOYEES HAVE GOT THE SAME w.e.f.01-01-2006). We are also paying Taxes regularly. It is tragic that the Government that gives huge corporate concessions and looses money in corruption is not considering implementation of increased ceiling from 01.01.2006 to the retirees. An aam aadmi sarkar fights the poor retirees. It is unfortunate that Trade Unions have dropped the issue like a hot potato in the year 2010. Affected retired employees may represent to Govt/Unions through their elected representatives to reconsider the matter in the Current Budget session 2011 of Parliament by mails, as a last resort.
One of the items appearing in “Bankingonly” sight is reproduced for the benefit of readers.To quote:
” Priya Brata Chakrabarti – Retd. SBI Official.,08 September 2010
ALL RETIRED PERSON SHOULD RAISE THEIR VOICE THROUGH “TWITTER”, “FACE BOOK” AND OTHER MEDIAS AGAINST THE DISCRIMINATION ON GRATUITY PAYMENT BY THE FINANCE MINISTRY. FINANCE DEPARTMENT HAS PASSED AN ORDER W.E.F. 01.01.06 TO PROVIDE THE BENEFIT TO THEIR OWN EMPLOYEES THOSE WHO ARE NOT RELATED TO ANY PROFIT MAKING INSTITUTION OTHER THAN TO WIN THEIR MIND PRIOR TO ELECTION BUT FOR OTHER EMPLOYEES OF PSU/PVT.SECTOR IT IS 24.05.2010 ON THE PLEA THAT TO REDUCE THE EXPENDITURE OF THE GOVT. PROFIT MAKING ORGANISATIONS ARE NOT INCLUDED WITH THE CHANGE WITHOUT HAVING ANY RATIONALITY YOU SHOULD TAKE INITIATIVE SO THAT ALL M.P.s in PARLIAMENT AND RAJYASABHA MAY RAISE THE QUESTION ” WHY THIS DISCRIMINATION ON THE QUESTION OF GRATUITY PAYMENT FOR EFFECTING THE DATE. I HAVE WRITTEN IN TWITTER AND FACE BOOK ON DIFFERENT OCCASION BUT I LIKE ,YOU SHOULD ALSO PROTEST IN WRITING AS NEXT PARLIAMENTARY SEASON WILL START VERY SHORTLY. PRIYA BRATA CHAKRABARTI – RETIRED OFFICIAL OF SBI AND SBI PENSIONERS ASSOCIATION(BENGAL CIRCLE) LODGE YOUR PROTEST AGAINST DISCRIMINATORY IMPLEMENTATION OF GRATUITY ACT-2010 DC AHUJA [dcahuja@gmail.com ] has sent the following draft of a letter which can be used for lodging the protest against the discriminatory implementation of Gratuity Act 2010. All those bankers who have been affected by non implementation of the Act from back date, should send the letter on the following lines to all the authorities separately. These bankers should also contact the union leaders and ask them to send the letters on their letter pads to these authorities. The central union leadership should also follow up with the government as this has been a major loss to a large number of bankers who have recently retired. To, The Hon�ble President of India, President House, New Delhi-110001. The Hon�ble Chief Justice of India Supreme Court of India, New Delhi. The Hon�ble Prime Minister of India, Central Secreteriate, New Delhi-110001. . New Delhi-110001. The Hon�ble Labour Minister, Ministry of Labour, New Delhi-110001 11th JUNE.,2010. Respected Madam / Sir, PROTEST AGAINST THE DISCRIMINATORY IMPLEMENTATION OF GRATUITY ACT, 2010 w.e.f. 24TH MAY, 2010 FOR PSU/BANKS/ INSURANCE SECTORS. (GOVERNMENT EMPLOYEES HAVE GOT THE SAME w.e.f.01-01-2006) We are thankful to Government for amending the Gratuity Act, 2010 effective from 24thMay, 2010. The Gratuity Act amendment 2010 is for Private Sectors / Banks / Insurance and Public Sector Undertaking, whereas the Government has amended the Gratuity Act in August 2009 for Central Govt. Employees effective from 01-01-2006. As per the Fundamental Rights mentioned in our Constitution RIGHT TO EQUALITY article 14 guarantees equality before law as well as equal protection of the Law to all persons within the territory of India. This includes the equal subjection of all persons to the authority of law, as well as equal treatment of persons in similar circumstances. As per the Fundamental Rights described in our Constitution RIGHT TO FREEDOM article 21 extend the protection that any law laying down a procedure must be just, fair and reasonable. On going through the above articles of Fundamental Right in our Constitution we presume that it is a great injustice with the employees of Private Sectors / PSU / BANKS / INSURANCE SECTORS as the date of implementation of Gratuity Act is w.e.f. 24thMay,2010. The Government implemented the 6th Pay Commission in the year 2008 and amended the Gratuity Bill for Central Government Employees in August 2009 effectivefrom 1st Jan., 2006. Another Gratuity Act amended in May 2010 for Private Sectors / PSU / BANKS / INSURANCE Sectors effective from 24th May, 2010. It took Government more than two years, after implementation of 6th Pay Commission, to move the Gratuity Bill before the Parliamentary Committee and then get the bill passed in the Lok Sabha and Rajya Sabha. The bill was moved only when most of the Trade Unions met the Hon�ble Labour Minister from time to time, whereas it would have been moved in the year 2008 itself after implementation of the 6th Pay Commission.. We all know that Private Sectors / PSU / BANKS / INSURANCE Sectors are earning profits and are the back bone of the Country. Then why there is discrimination between Central Government Employees and the employees of Private/ PSU / BANKS / INSURANCE Sectors. All these sectors stand strongly during the recession in the world. Is this not a great INJUSTICE ? Is this not INEQUALITY as per the Fundamental Rights mentioned in our CONSITUTION ? We once again request The Hon�ble President of India, The Hoin�ble Chief Justice ofIndia, The Hon�ble Prime Minister of India, The Hon�ble Labour Minister of India, to consider our genuine demand being the RIGHT OF EQUALITY as mentioned in our Constitution and amend the date of implementation of Gratuity effective from 01-01- 2006 instead of 24th May, 2010. Thanking you in anticipation. Yours faithfully, ( ) Retired from :�������.. Date of Retirement :����� CC: To the Secretary General, Committee on Petitions, Rajya Sabha, New Delhi-110001, with a request to redress our genuine demand under article 350 of the Constitution of India. APPEAL BY Dr. G. Sanjeeva Reddy, MP, FOR EXTENDING THE BENEFITS OF ENHANCED GRATUITY TO THOSE WHO RETIRED BETWEEN 2006 AND 2010 The Indian Worker Founder Managing Editor Editor HARIHARNATH SHASTRI Dr.G.SANJEEVA REDDY, MP P.J.RAJU June, 01-15,2010 Dr. G. Sanjeeva Reddy in his speech in Parliament urged the government to implement the amended Gratuity Act with retrospective effect Sir, the Minister has proposed some amendments to the Gratuity Act. We welcome them and support this Bill. But we have some suggestions to make. The sixth Central Pay commission has recommended gratuity of ten lakhs rupees to the Central Government employees with retrospective effect. The same provision is adopted here in the Gratuity Act also but it is not being done with retrospective effect. This means workers who have retired during the period from 2006 to 2010 are denied the benefit. All the recommendations of the Sixth Central Pay Commission have been implemented and gratuity has been paid to employees with retrospective effect whereas in this case, if the private employers are going to give these benefits in this manner, who is going to benefit? It is not going to be taxed on public sectorcompanies. It is for the benefit of the private sector employees. If implemented with retrospective effect, this would benefit people who retired from 2006 onwards otherwise the employees who retired before this Bill would get only Rs. 3,50,000. Sir, the Bill says that it shall come into force on such date as the central government notify in the Gazette. So, it is really depriving workers of their genuine right. I can submit to the hon. Minister to please reconsider this. After passing the Gratuity Bill in 1972 the amount of gratuity of Rupees three lakhs and fifty thousand was fixed by amendment in 1997. You have not changed the quantum. Every worker is entitled to have gratuity at the rate of 15 days wages only for every completed year of service. For quite a long time, this 15-days entitlement is there. We thought that the Government is considering favourably increasing this 15-days wages to 30 days. It has been the demand of all the trade unions. Since the cost of living is very high and the prices are soaring high, the quantum of 15 days wages should be increased to 30 days. But that has not been done. Only the big entrepreneurs are going to get the benefit, not the working class. You are denying this right to employees who are working in the private sector. It is the grave injustice to these employees. I am sure that the Hon. Labour Minister can understand the feeling of the working class. Poor workers should not be denied their right. Another point is that, Sir, gratuity is given in lieu of service rendered to the industry. For thirty or forty years workers render service to the industry and thatindustry has to pay gratuity to workers because workers are not entitled to pension at this moment. A large number of workers do not get any pension. They get only gratuity benefit on retirement. Today neither you are increasing the quantum of gratuity entitlement nor implementing it with retrospective effect. It is really a grave injustice to workers. I can only request that our Government should reconsider this matter. Therefore, I request the hon. Minister to consider it with retrospective effect. If it is not passed with retrospective effect, it will be an injustice to the working class. I once again appeal to the Government to please reconsider it otherwise working class may start agitation saying that you are discriminating between the Government employees and private sector employees and you are bringing this Act without retrospective effect only to benefit the private employers. It is not good for the prestige of the Government. Therefore, I appeal to the hon. Minister to reconsider this. There are no financial consequences on the Government and there is no excess burden on the Government. There is burden only on the private sector. Therefore, I earnestly request the hon. Minister to please reconsider this small thing. This is a social security benefit that you have to give. Nothing else can compensate the workers for their long service to the industry. Publish by Subhash S.Sawant General Secretary Indian National Bank Employees Federation”
You are no better than an Agricultural farmer. Follow the farmers;
I GOT SUPERANNUATED ON 29/02/2008 FROM SBI.IT SEEMS THAT SBI IS READY TO PAY THE ENHANCED GRATUITY AMOUNT.BUT,THE GOVT.IS NOT PERMITTING TO DO SO.IS THERE ANY OTHER ALTERNATIVE TO CONVINCE THE GOVERNMENT
PL. LET ME KNOW WHETHER ANY
COURT CASE HAS BEEN FILED AGAINST THIS INJUSTICE.IF ,SO, WHAT IS THE VEDICT?
Our elected representatives are not bothered about our genuine problems. They are busy in only earning money by unfair means and settling scores with each other . How much time they have taken to pass this amendment to gratuity bill? Why this discrimination?Only because govt babus are witness and partners to their shady deals. Has anybody gone to court? We welcome justice delayed bot not denied
The year that has just gone by has been a year of anxiety for the people retired between 1.1.2006 to 23.5.2010.It was a year that saw an obstinate Govt not considerate to genuine request of retired people. During the last decade the probability of retired 60 year old surviving to age of 85 doubled, from about 20 per cent chance to a 40 per cent chance. However the increased life expectancy has not been accompanied by more years of perfect health. Average “morbidity ” or the period of life spent with serious disease or loss of functional mobility, has actually increased in the last few years. A person retired in Jan 2010 and a person retired after 24.05.2010 have to leave in the time space after Jan 2011. We have reached an alarming stage when we cannot rely on anything. The common retired man relies largely on the media for news. We trust what we see on television, read in the newspapers and hear on the radio. The policies are influenced by various interests and subjective decisions are made by the Government. The unions have done their best after initial reaction to the Gratuity Amendment bill. At a time when Onions are sold at a rate of Rs.80 K.G, Only the removal of the discrimination on the effective date can end the agony of every honest retired person undergoes in his day-to-day affairs. We are in times where illegally constructed houses are regularized by local authorities. 2011 calls for review/reversal of Gratuity effective date, in the next budget. This is possible only when properly respresented by affected individuals.
Sastry
I am also sufferer for effective date not being restropective. I retired in April2009 from Gujarat State Fertilizers and chemicals Limited Jamnagar and not getting benefit of 10 lacs Gratuity exemption in It. Can anybody inform whether there is any possibility of effective date review? or should we not reoresentto PM for our loss?
The bonhomie exhibited on the issue at various conferences, summit meetings is only a facade, under which lies a labyrinth of deception, double-dealing and cunning. The solution left out is either approach the courts or forget the issue.
Sastry
Really it is surprised not to have any reply or positive
attitude on gratuity issue.There should not be any partiality.Every retired person should get this benefit
wef 1-1-2006.I wish our Hon.Prime Minister will listen
our voice.Thanks
Kamlesh Gopani
whether teachers are now covered under definition of employee
ON THE DAY OF PRESENTATION OF THE BILL IN PARLIAMENT, HONOURABLE MEMBERS DID NOT RAISE ANY ISSUE ON THE GRATUITY ACT UNDER THE IMPRESSION THAT IT IS FOR THE BENEFIT OF RETIRING EMPLOYEES.THEY FAILED TO NOTICE THE NOTORIETY, DISCRIMINATION AND THE INJUSTICE THE ACT WOULD CAUSE TO THE RETIREES, AS THE DATE OF IMPLEMENTATION WAS LEFT TO THE MINISTRY. UNION LABOUR MINISTER AND THE GOVT OF INDIA HAVE FAILED TO GIVE ANY LOGIC TO CAUSING SUCH A HUGE LOSS AND DISCRIMINATION TO THE POOR RETIREES OF PUBLIC AND PRIVATE SECTOR UNDERTAKINGS.THIS HAS HAPPENED DESPITE THE FACT THAT FEW ORGANISATIONS LIKE IBA WROTE TO THE MINISTRY THEIR CAPACITY TO PAY THE ENHANCED GRATUITY.THE MINISTRY SHOULD HAVE IMPLEMENTED THE ACT UNIFORMLY.I WOULD REQUEST ALL THE AFFECTED PERSONS TO ORGANISE A DEMONSTRATION BEFORE PARLIAMENT AS THE GOVT OF INDIA LISTEN THE LANGUAGE OF VIOLENCE, DHARNAS AND DEMONSTRATIONS BUT NOT OF REQUESTS.
The mail addresses of Loksabha Members are available at loksabha.nic.in. It is better to send the feelings of affected people to Hon Members of Parliament.
INDIA IS A COUNTRY WHERE SCAMS ARE DAILY REPORTED IN THE MEDIA.NON IMPLEMENTATION OF THE GRATUITY ACT RETROSPECTIVELY 01.01.2006 IS AN OTHER SCAM TO BE NAMED AS A GRATUITY SCAM.THIS HAS BEEN DELIBERATELY DONE BY SOME ONE IN THE MINISTRY OF LABOUR FOR CONSIDERATION.IT IS QUITE LIKELY SOME ONE IN THE MINISTRY GOT CRORES OF RUPEES TO KEEP THE ACT IN ABAYANCE FOR SUCH A LONG TIME TO BENEFIT THE PRIVATE EMPLOYERS WHO MANAGED TO SAVE BILLIONS OF RUPEES BY JUST OFFERING ILLEGAL GRATIFICATIONS OF A FEW CRORES OF RUPEES TO THE MINISTRY OFFICIALS OR SOME ONE ELSE.ON THE DAY OF THE ENACTMENT OF THE UNION LABOUR MINISTER SAID THAT THEY HAVE TO SEE ALSO PAYING CAPACITY OF THE EMPLOYERS.THE SAME LOGIC WAS NOT APPLIED TO THE CENTRAL/STATE GOVT EMPLOYEES FOR PAYMENT OF THE GRATUITY RETROSPECTIVELY.AS A MATTER OF FACT MANY STATE GOVTS WHO MANAGE PAYMENT OF MONTHLY SALARIES WITH GRAET DIFFICULTY HAVE BEEN PUT TO GREAT FINANCIAL HARDSHIP BY THIS ENACTMENT.MR NITIN GADKARI’S IS RIGHT IN HIS OUTBURSTS THAT SOME CRIMINALS ARE SONS IN LAW TO THE UPA LEADERS SO THEY ARE NOT BEING HANGED BUT BEING GIVEN A SPECIAL TREATMENT.I WOULD LIKE TO ADD THAT AMONG SONS IN LAW TO THE UPA LEADERS THERE ARE ALSO GOVT EMPLOYEES WHO HAVE BEEN GIVEN A SPECIAL TREATMENT IN PAYMENT OF ENHANCED GRATUITY.OTHER EMPLOYEES HAVE BEEN DENIED THE BENEEFIT.IT IS STARNGE THAT THE UNION LABOUR MINISTRY SUPPOSED TO LOOK AFTER THE INTERESTS OF LABOUR IS WATCHING THE INTERSTS OF EMPLOYERS.THIS IS DEFINITELY A SCAM IN THE COUNTRY TO NAMED AS A GRATUITY SCAM 2010 WHERE LACS OF THE RETIREES HAVE BEEN DEPRIVED OF THIER RIGHTFUL RETIRAL BENEFIT.ALL AFFECTED SHOULD MADE A REPRESENTATION TO THE SUPREME COURT OF INDIA AGAINST THIS HIGHLY DISCRIMINATORY ACT AND ALSO SEEK A THOROUGH PROBE FOR KEEPING THE ACT IN ABAYANCE FOR SUCH ALONG TIME
DEAR SALIAN AND SASTRY, I HAVE CONTACTED SRI ANANTH KUMAR G.S OF B.J.P. AND SENT A DETAIL LETTER ON 17TH.GOT LETTER TO SEND FURTHER DETIL.SINCE I AMNOT HAVING YOUR ADDRESS I TRIED TO CONTACT THROUGH THIS MEDIA. KINDLY SEND A DETAIL LETTER TO HIS CONTACT ADDRESS THROUGH E.MAIL.ANANTH SECRETARY ONE SRI NARAYANA GAMBHIR AND HIS E.MAIL ADDRESS SECRETRY @ANANTH.ORG.I YOU GOOGLE SEARCH ANANTHKUMAR MP PROFILE YOU WILL BE ABLE TO GET CONTACT TO THERE ALSO YOU PLEASE TRY. IHAVE SENT AREPRESENTATION TO F.M. EMAIL TO SUSHMA SWARAJ NITIN GADKARI BUT COULD NOT GET LEFT LEADERS E.MAIL ADDRESS.IF ANY DEVELOPMENT IS THERE KINDLY INFORM ME. MY E,MAIL ADDRESS PGSHASTRY@GMAIL. COM KINDLY GET EMAIL ADDRESS OF SANJAYAMNIRUPAM . P GOPAL SHASTRY POST BORIMAR VIA MANI BANTWAL TALUK S.K.DIST.574253
Mr.Salian. A good begining from individual level, to be emulated by readers.Mails on similar lines sent to some of our Hon M.P’/Parties were unfortunately not even acknowledged. Let us not loose confidence.For retirees this is now or never like situation. Let all options be used.
The appeal I hd sent to Shri Sanjay Nirupam is as under
“Respected Sir,
We read in the media that in the current session, a bill shall be introduced to raise the salary of MPs. Sir, you must have realised how difficult it is to cope with the rising cost of living especially when food inflation is in double digits and when one has to fend for themselves. MPs were sympathetic when such issues effect the employees working in the government sector. This was proven while implementing sixth pay commission in the year 2008 with effective date as 1.1.2006.
When the labor minister introduced the amendment to gratuity act 2010, employees retired in other sectors were expecting that the effective date for raising the ceiling amount from Rs:3.5 lacs to 10.0 lacs will be 1.1.2006 as done for the employees in the government sector. However, employees retired from 1.1.2006 to 23.5.2010 got the biggest jolt when the effective date for other sector was notified as 24.5.2010. The result of such a notification has deprived Rs:6.5 lacs from employees retired from other sectors during the period 1.1.2006 to 23.5.2010. This amount would have been huge relief to the senior citizens whose only source of income is form retirement benefits.
Sir, you being a ruling party member having direct access to the UPA chairperson Madam Sonia Gandhi can impress upon prime minister Shri Manmohan Singh to bring parity in the gratuity act so that uniform retirement benefit is applicable across all sectors”.
I am resident of Mumbai (Kandivali) and Shri Sanjay Nirupam is the MP from the constituency to whom I had sent an appeal. I am happy to get a quick response from him which I would like to share with and request others to take up the subject with their elected representatives.
Quote “Dear Mr.Salian
Thanks for your appeal.Ever since my election I have been following up on this issue.Based on the recommendations of the 6th Pay Commission ,the Govt raised the ceiling of Gratuity from 3.5 lacs to 10 lacs wef 1.1.2007 n not 2006,as Pay Commission Recommendations are mandatorily implemented for Govt. Employees.This decision was not applicable even to Govt PSUs n their employees did not get the benefit.After much follow up ,We succeeded in pressurising the Govt to raise the ceiling even for PSUs n Pvt Sector employees.However the decision was taken and notification issd in May2010 with prospective effect.
The chances for further review are very slim but will rperesnt the matter to FM
Sanjay Nirupam
Unquote”
I think Mr Shastri is right. As of now, neither DNA nor TIO have publised my notes.
In the era of paid news articles supporting the cause of employees are rarely published/appear in visual media. In democracy aamadmi is a joker used by all players for their selfish ends.
I have written following notes to the editors. Hope to get it publised.
With reference to news item ‘MPs may hike their salary by Rs:44,000/m’ (Aug 16), our elected representatives are quick in taking action when it comes to their emoluments. They must have realised how difficult it is to cope with the rising cost of living specially when food inflation is in double digits. They are also sympathetic when such issues effect the employees working in the government sector. This was proven while implementing sixth pay commission in the year 2008 with effective date as 1.1.2006.
When the labor minister introduced the amendment to gratuity act 2010, employees retired in other sectors were expecting that the effective date for raising the ceiling amount from Rs:3.5 lacs to 10.0 lacs will be 1.1.2006 as done for the employees in the government sector. However, employees retired from 1.1.2006 to 23.5.2010 got the biggest jolt when the effective date for other sector was notified as 24.5.2010. Our learner prime minister can only understand the plight of the retired employees during these difficult days. Therefore, through this column, this is my appeal to the prime minister for intervention and make all the employees equal for retirement benefit.
Krishnappa. Salian – Mumbai.
This has reference to news item ‘Union cabinet defers bill to hike salary of MPs’ (DNA August 17). Mr Lalu Prasad Yadav is expected to lead a protest to Parliament which he claims to have backing of almost all parties including congress. One of the reason for hiking the salary is that the MPS are poor and they have to fend for themselves. However, these very MPs did not raise their voice in the parliament when the labour ministry notified increase in the gratuity effective 24.5.2010 instead from 1.1.2006 as done for government employees. The result of such a notification has deprived Rs:6.5 lacs from employees retired from other sectors during the period 1.1.2006 to 23.5.2010. Can we request Mr Rajeev Shukla and Mr Lalu Prasad to impress upon the prime minister to bring parity in the gratuity act so that uniform retirement benefit is applicable across all sectors.
Krishnappa.Salian – Mumbai
Replying to a debate on the Gratuity amendment Bill in the Rajya Sabha, Union labour minister Mallikarjun Kharge stated that
‘The government is concerned about workers’ welfare. But there has to be a balancing act between an industry and its employees. At present, we are not in a position to apply the gratuity benefit with retrospective effect,”. Now that M.Ps’ are in a hurry to hike their salaries with retrospective effect, retired employees/employees unions/Pensioners associations ( LIC/Banks/PSU) should renew their efforts/requests to M.Ps to reconsider the matter along with M.Ps hike in salaries. As a last minute effort retired people can make an appeal to our M.P Shri.Lalu Prasad Ji.
Sastry
I am working in a self finance school.. Are thhe teachers working in self financing private schools covered under the gratuity act? Kindly guide.
Except that some people have made appeals, there is no strong follow up from any level,on the subject matter, as it has affected only a small number of people.Union leaders have also done their lip service by sending a letter… etc. It was only due to very strong public opinion that there is discrimination between government employees and PSU/private employees that government was forced to issue this ordinance for existing employees. The only alternative we feel is that in case some senior parliamentary leaders are contacted personally by some group and they are asked to raise the issue in both Houses of Parliament that government may be forced to listen or at least think about the same.The Govt took two years to get the bill passed in Lok Sabha. Hence the effective date atleast be made date of putting the bill before the Parliamentary Committee.
Sastry
I am the retired TN Govt. PSU officer. I have put 35 years service. I am getting the EPF Pension only Rs.1559 from my retirement period on 30-06-2008.Until retirement I have availed all the 6th Pay commission benefits on par with TN Govt. servant. The TN Govt.staff is getting Gratuity benefit from 1-01-2006. But the present order of gratuity w.e.f, 25-10-2010 made me a great obstacle on relieving from the debts arising out of marriage of daughters, and higher studying son.
So I am not able to break the famous principle of “born in debt, lives in debt, and bequests the debt” Therefore my hope of getting the gratuity as per th 6th pay commissions recommendations from 1-01-2006 for has been shattered and put the retirement life in non-peaceful.
It is a great injustice to the Employees who retired between 01.01.2006 to 24.05.2010 in GOVT.Undertakings.
Our Hon’ble Prime Minister, WHO IS WELL-KNOWN FOR HIS HONESTY AND JUSTICE, is requested to look in to the matter of changing the date of effect of Gratuity from 01.01.2006 so as to maintain the parity at least to those of public sector enterprises, Banks etc. who have adequate funds/provisions. Otherwise this will be a great injustice for us.
SELVANATHAN
Representations were there before enactment of the amendment for retrospective implementation,it was not acceded to.Will the Govt.
agree now ,merely, on representations?Only recourse available appears is to take up in a court of law
Can somone take a lead and file a PIL on behalf all the employees retired from private sector, psu, banks, LIC etc between 1.1.2006 to 23.5.2010. Scribling at various sites is not going to give any result.
Please advise whether the Amendments to payment of Gratuity Act, 2010 is applicable from 1.1.2006 to employees of IFCI, IDBI, Banks etc which are public sector undertakings. Reply may please be sent to my e-mail ID mnl.rajablr@gmail.com
let us persuade our opposition leaders to raise a hue and cry against the controversial gratuity amendment bill and protest against the gross injustice meted out to a good number of retirees who have been waiting so hopefully for the act to take shape.A joint forum can be raised through the media and legal remedy must be sought if nothing happens peacefully.Meanwhile sending of protest letters must be continued by all and sundry to the Hon.President,Hon`ble Prime Minister,F.M.,and all related officials in protest.
I dont hv a copy of the pay revision effective from 1.1 2007 for PSU but distinctly remember that committee recommended that Gratuity limit shall increase from the effective date at par with Central Govt. Employee. This was part of pay negotiation once guidelines were issued by pay revision committee by the Govt. Now denying the benefit of the pay revision through a seperate notification is not clear.
It is not understood if Govt err at some juncture then what the opposition do all the time. They have been raising all useless issues but dont bother when a real injustice is done by the Govt. How can Govt renegade its own accepted recommendation of the pay revision committee . This is not giving the revision in Gratuity amount with retrospective effect. It would have been if the same is demanded from the date earliar then 1.1 2007.
Are the concerned decision maker listening.
Is there no other option to wake up the Govt from slumber on the issue like going to court on a wrong decision. I am calling it wrong because the decision to increase the gratuity limit was well taken when Pay Revision Committee was accepted by Govt for PSUs.
I retired as Dy.GM from M/s Engineers India Ltd.on 31.05.2009.I was in Central Scale of Pay(CDA) at the time of my retirement.I got only Rs.3.5 Lakhs as gratuity on my retirement.I have been mailing to the Company requesting for payment of balance gratuity but there is no response.Kindly advise me whether I am entitled to get balance gratuity amount.
I would like to know whether the private school teachers come within the purview of “employee” under gratuity act? or eligible to get gratuity? every body is anxious to get more but who will cry for the poor school teachers?
please reply
Discrimination can be challenged in a court of law,thats what the concerned want. However, decision will take a long time.Appeal to the P.M and F.M perhaps may work
K.MOHAN,COCHIN,21st june 2010
The Honourable Prime minister and
Finance Minister may kindly interfere to rectify the gross injstice shown to a large section of employees [since retired] by
not giving effect to the Payment of Gratuity Act,2010 from 1st january,2006 as it had done for Central Govt.Employees by passing the amendment in 2009 giving retrospective effect from
01-01-2006.
The matter is more painful as natural justice is denied to a section of citizens by none other than the central gavernment.
I trust and pray,that the authorities will interfere and enforce natural justice to all.
21st June 2010. With the hard headed Finance Minister and a President giving assent to the Act without looking into the difficulties of the retirees of public/private sector, how natural justice will prevail? At least now, after viewing the number of representations, they should make a review and make amends.
It is hard to believe that the Govt. we voted to power can have lot of side effects. The Central Govt. employees as usual benefit from the enhanced gratuity w.e.f. 01.01.2006 whereas the Central Govt. PSU’s who follow dpe guidelines were promised the enhancement of gratuity from 01.01.2007 via their O.M. dated 26.11.2008 which was later over ruled by their dpe O.M. of 2nd June 2010 stating that the enhanced Gratuity would be applicable to people who retire on or after 24.05.2010. Isnt this total injustice? With poor rates of interest and an all high inflation, it would have been in the interest of the aam aadmi if the effective date of enhanced gratuity to Rs.10 lakhs was made applicable FOR ALL from 01.01.2006. Hon. PM & FM, please look into the woes we are facing as retirees and help us by giving us the arrears of Rs.6.5 lakhs which will come to us as a blessing in disguise.
We are thankful to the Government for amending the Gratuity Act, 2010 effective from 24th May, 2010. The Gratuity Act amendment 2010 is for Private Sectors / Banks / Insurance and Public Sector Undertaking, whereas the Government had amended the Gratuity Act in August 2009 for Central Govt. Employees effective from 01-01-2006.
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I presume, Sir, that it is a great injustice with the employees of Private Sectors / PSU / BANKS / INSURANCE SECTORS as the date of implementation of Gratuity Act is w.e.f. 24th May,2010. The Government implemented the 6th Pay Commission in the year 2008 and amended the Gratuity Bill for Central Government Employees in August 2009 effective from 1st Jan., 2006. Another Gratuity Act amended in May 2010 for Private Sectors/PSU/ BANKS / INSURANCE Sectors is effective from 24th May, 2010.
Sir, PSU / BANKS / INSURANCE Sectors are earning profits, having funds/huge provisions and are also the back bone of the Country. There should not be any discrimination between Central Government Employees and the employees of PSU / BANKS / INSURANCE Sectors. All these sectors stand strongly during the recession in the world and by the side of Govt. at times of difficulty and implementation of Plans and Priorities of the Nation.
I humbly request The Hon’ble President of India, The Hoin’ble Chief Justice of India, The Hon’ble Prime Minister of India, The Hon’ble Finance Minister of India, The Hon’ble Labour Minister of India, who are well known for justice to all concerned, to consider the genuine demand and amend the date of implementation of Gratuity effective from 01-01- 2006 instead of 24th May, 2010 so that I am not deprived of the benefits earnestly due to me after rendering long 39 years of Bank service as on 30.04.2009 when I retired from the Bank.
Instead of writing the comments in the intranet, can someone suggest, how all the people retired between 1.1.2006 to 23.5.2010 come together and make a petition to the Prime Minister?
Hon. P.M & F.M is requested to enhance gratuity limit from 3.5 lakhs to 10.0 lakhs uniformly for Central Govt. employees & PSUs like ONGC wef 01.01.2006. ONGC has increased gratuity wef 01.01.2007.Natural justice should be given to PSUs employees at the earliest by giving themenhansed gratuity wef 01.01.2006. Also ONGC employees retired up to Dec.2006 are not getting pension or other benefits given to employees retired after 01.01.2007
WHY THE RETIRED EMPLOYEES(OTHER THAN CENT.GOVT)ON OR AFTER 01.01.06 ARE NOT COMING TOGETHER TO PROTEST AGAINST GIVING EFFECT OF 24.05.10 INSTEAD OF 01.01.06 OF GRATUITY LIMIT OF 10-LACS.IT IS A GROSS INJUSTICE TO THOSE EMPLOYEES RETIRED ON OR AFTER 01.01.06.
This will be highly arbitrary, malicious and unjust if the government itself divides its citizens and workers in two categories – those working in Govt. and others. All are contributing to the wefare and growth of the country. In thefirst place itself, the Govt. should have declared tax free enhancement of gratuity from 3.5 lakh to 10 lakh for all employees retiring w.e.f. 1.1.2006, irrespective of whether from Govt. or other sectors. It should now amend its mistake by rectifying the orders to be effective from 1.1.2006, otherwise it will be great injusice to all other employees who are also facing the same hardships as their counterparts in the Govt.
After knowing that the effective date of enhancement of gratuity payment is from 24.05.2010 allmost all section of employees felt like having undergone a heart stroke and depression.The great injustice done to the small section of the retired people who are in great need of money due to price rise of commodities,lower income from the retirement benefits,to take care of medical necessities of self and dependents,other social requirements like education of children, performing girl child marriages, ..etc Governemnt should rethink on the effective date and provide good support for the retirees to lead a normal life, Instead of neglecting them.It is very difficult to survive under the present hike in prices in every walk of life. Gratuity being one time payment at the time of retirement, it is more appropriate to give retrospective effect, keeping the ground relities into consideration. Govt. Should not forget the hard work put in, in upliftment of the organistion by the section of the employees. With average take home pay of any employee before retirement around Rs.15000 per month the difference loss due to amendment to every employee is equivalent to 4 years salary. The bill was passed by Honourable members of the Parliament by voice vote without knowing the likely effective date.The Govt should immediately consider the retired employees demand sympathytically. The matter should be taken to the notice of the honourable M.P’s through these colums/press to garner necessary support for further action.All employee organisation should make mass representations to the concerned in this regard. Justice delayed is justice denied.
WHERE IS NATURAL JUSTICE AND EQUITY IN GIVING THE EFFECTIVE DATE AS 24.05.10 INSTEAD OF 01.01.06. THE CENT. GOVT. EMPLOYEES HAVE GIVEN THE BENEFIT WITH GOLDEN SPOON WHEREAS OTHERS WITH IRON MADE SPOON. BOTH ARE CITIZENS OF THE SAME LAND/COUNTRY……COMPLETE DENIAL OF JUSTICE, THERE WILL BE NO REVERSAL OF THE ORDER UNLESS IT IS BEING PROPERLY LITIGATED TO A HIGHER COURT.IT’S A TRAGEDY/DISASTER LIKE A little bhopal tragedy.
Pease send the copy of Notification raising the limit of gratuity.