The Payment of Gratuity (Amendment) Bill, 2017 (the “Bill”) endorsed by the Lok Sabha (Lower House of Parliament) not long ago was passed by the Rajya Sabha (Upper House of Parliament) a week ago, preparing for promote changes to The Payment of Gratuity Act, 1972 (the “Demonstration”).
The Act is one of the key work welfare enactments of India and stipulates instalment of tip by bosses to representatives on end of business or demise, with the qualification criteria being 5 long stretches of least administration with the business. The measure of tip is ascertained in view of the last drawn pay of the most recent 15 days for every time of ceaseless and finish benefit, subject to a top and is tax-exempt.
With the section of the Bill, the accompanying arrangements of the Act will be overhauled:
The present roof of INR 10 Lakhs on the tip payable to a representative under Section 4 will stand supplanted with “such a sum as might be told by the focal government from time”. At present, the greatest tip payable to a representative is INR 10 Lakhs and the administration proposes to build it to INR 20 Lakhs. This is basically to expedite the Act standard with the Central Civil Services (Pension) Rules, 1972 where as far as possible on the tip for focal government representatives was upgraded from INR 10 Lakhs to INR 20 Lakhs following the seventh Central Pay Commission’s proposal.
12 weeks recommended as the most extreme maternity leave period to calculate persistent administration of a female worker under Section 2A will be changed to “such period as might be told by the focal government every now and then”. The time of 12 weeks depended on the time of most extreme maternity leave permitted under the Maternity Benefit Act, 1961. The Maternity Benefit Act, 1961 has since been altered to expand the most extreme maternity leave from 12 weeks to 26 weeks by the Maternity Benefit (Amendment) Act, 2017. In this manner, with this change the administration will have the capacity to amend the most extreme maternity leave period for figuring of a female worker’s nonstop administrations to 26 weeks and get it couple with the present maternity leave administration in India.
The present revision is a much needed development as it will to a great extent advantage the private division workers secured by the Act. The present alteration likewise enables the administration to roll out further improvements in the tip roof and the greatest maternity time frame as might be required every now and then basically by method for warning, without amending the law. While this representative inviting alteration will no uncertainty increment the businesses’ weight in the long haul, it stays to be perceived how managers (re)evaluate the current severance installment structures. This may likewise advance the reason for the gig-economy laborer in the period of tech interruption.
The Bill will be instituted with the endorsement of the President of India and distributed in the official journal. From there on, the progressions will become effective on being informed by the administration.