Gratuity calculation when partnership converted into pvt ltd.
05-Feb-2023 (In Labour & Service Law)
I joined in partnership company in 1999. In 2011 this company converted in to PVT.Ltd. now company calculating gratuity in 2 part . 1999-2010 and from 2011-2018. no gratuity settled at the time of conversion nor any documents, no pF no ESI. management,and other things are same . only converted in to pvt. is it right to calculate gratuity in 2 parts? what is your advise for labors.
Gratuity is a payment made to an employee by the employer either at the time of retirement or when he is leaving the job. It is given to the employee once he has completed at least 5 years of continuous service. It is mandatory for any employer in the private sector or public sector who has 10 or more employees to pay gratuity to all employees. The payment of Gratuity Act was passed in the year 1972. According to Article 10 (10) iii of the Income Tax Act, exemption for gratuity amount received by individuals who are not covered under Gratuity Act of 1974 are as follows:
Half month’s Salary* X Completed years of service
Half month’s Salary* X Completed years of service
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Labour & Service lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."