We have contract employees working under NACO through SACS registered under society act 1860 with consolidate honororium .Some of employees has completed more than 18 years of service under the same organization without any break of service.
Query is that:-
1- Are such employee are entitled to get Gratuity ?
2- If yes, then then the same is payable by the concerned society ?
3.An society registered under society act 1860. Whether Payment of gratuity act applicable on this yes or no.
06 July 2024
Regarding your queries related to gratuity for employees working under a society registered under the Society Act 1860:
1. **Entitlement to Gratuity**: - Employees who have completed more than 5 years of continuous service are generally entitled to gratuity under the Payment of Gratuity Act, 1972 (the Act).
2. **Responsibility for Payment**: - Yes, if the employees are eligible under the Act, the society registered under the Society Act 1860 would be responsible for payment of gratuity.
3. **Applicability of the Payment of Gratuity Act**: - The Payment of Gratuity Act, 1972 applies to: - Every factory, mine, oilfield, plantation, port, railway company, shop or other establishment where 10 or more employees are employed, or were employed, on any day of the preceding 12 months. - The Act also applies to societies registered under any law, including the Society Act 1860, if they employ 10 or more employees.
Therefore, if your society employs 10 or more employees, the Payment of Gratuity Act would be applicable, and employees who meet the eligibility criteria would be entitled to gratuity.
Regarding the notification for the same, here is a summary of the relevant provisions of the Payment of Gratuity Act, 1972:
- The Payment of Gratuity Act applies to establishments including societies registered under any law if they employ 10 or more employees. - Employees are eligible for gratuity if they have completed at least 5 years of continuous service. - The maximum amount of gratuity payable is capped at Rs. 20 lakhs, as per recent amendments.
For specific legal documents or notifications, it's advisable to refer to the official gazette notifications or legal databases for the latest updates and provisions of the Payment of Gratuity Act, 1972.
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