Source* www.taxguru.in/finance
Payment of Gratuity (Amendment) Act, 2009 – Amendment in section 2 and insertion of section 13A, Change in definition of employee
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.”.
Related Post:-
1. Cabinet
approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to
Rs 10 lakh
LIC has only given a list of 45 ex-employees (2010) whose arrears' payments have been repudiated. On an average, about 4.5 crores have been denied as Gratuity payment for these employees.
As stated in my first post, this repudiation of arrears and difference in Statutory benefits like Gratuity and Provident Fund has been going on since August 1997. This amount will run into billions of rupees.
Besides, the number of resigning employees since 1997 who have been denied arrears' and other Statutory Retirement Benefits; in spite of being on the rolls of the Corporation, as on the date from which revised payments were applicable; will itself be in thousands.
How has LIC of India accounted for this unpaid but payable amount in its Financial Statements? Has it even been accounted for?
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