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No Gratuity payment for 1 2, 3 or 4 years of service: New rules soon

No Gratuity payment for 1 2, 3 or 4 years of service: New rules soon


Mangalore Today News Network

New Delhi, Dec 12, 2019 : Employees will become eligible for payment of Gratuity only after termination of his employment on completion of 5 continuous years in service, according to the Code on Social Security 2019 introduced in Lok Sabha. The code on social security will come into effect only after it is passed by both Houses of Parliament and receives Presidential assent. Chapter V of the Code says, "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years…", Yahoo reported.

 

gratuty12dec19


The important conditions on which Gratuity will be payable to an employee after s/he completes five years of continuous service are superannuation, retirement or resignation, death or disablement due to accident or diseases, termination of contract period under fixed-term employment or on the happening of any such event notified by the Central Government.

When 5 year-service is not mandatary for Gratuity payment

The Code on Social security says the "completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement or expiration of fixed-term employment or happening of any such event as may be notified by the Central Government."

Also, in case of death of an employee, the gratuity amount will be paid to his nominee. If nomination has not been made by an employee, the amount will be paid to his heirs.


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Comments on this Article
Hema, Mumbai Sun, December-15-2019, 11:41
Gratuity new Code on Social Security 2019 introduced in Lok Sabha is the same as what old Gratuity act.. what is new in it
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