GRATUITY CEILING RS.20 LAKH W.E.F 29/03/2018 - DEMAND FOR EFFECTIVE DATE 01/01/2016 read detailed comments below

GRATUITY CEILING RS.20 LAKH W.E.F 29/03/2018 - DEMAND FOR EFFECTIVE DATE 01/01/2016 read detailed comments below

An appeal is required to be made to the Prime Minister of India, Finance Minister and Minister of Labor and Employment.

ALL ARE EQUAL BEFORE LAW. It is a Constitutional Right.

The cause of this petition has arisen due to enhancement of Gratuity Ceiling from Rs.10 lacs to Rs.20 Lacs vide two Notifications of Central Government under Ministry of Labor and Employment dated 29/03/2018 which read inter alia:

S.O. 1420 (E).—In exercise of the powers conferred by sub-section (3) of section 4 of the Payment of Gratuity
Act, 1972 (39 of 1972), the Central Government hereby specifies that the amount of gratuity payable to an employee under the said Act shall not exceed twenty lakh rupees.

S.O. 1419(E).—In exercise of the powers conferred by sub-section (2) of section 1 of the Payment of Gratuity
(Amendment) Act, 2018 (12 of 2018), the Central Government hereby appoints the 29th day of March, 2018 as the date on which the said Act shall come into force.

You all are aware that Central Government Employees were awarded enhancement of Gratuity Limis from Rs.10 Lacs to Rs.20 Lacs with effect from 01/01/2016 under 7th Pay Recommendations as one of the Employees Welfare Measures to compensate raising inflation over the period. Based on the implementations of this welfare measure, Employees from other industries Public Sector Banks, Insurance, Public Sector Undertakings, represented by several unions/organizations may file an appeal to the government to extend the same welfare measures to all with effect from 01/01/2016 by necessary amendment to Gratuity Act. Finally the Government introduced the Gratuity Amendment Bill in Dec.2017 in Lok Sabha and after passage by LS the same was forwarded to Rajya Sabha in March.2018. After passage in Rajya Sabha, an Amendment was made to empower the Government to announce Change in quantum of Gratuity Limit and the effective date.

But to our disappointment, the Government came out with a notification to enhance Gratuity Limit to Rs.20 Lakhs as above effective from 29/03/2018 as against the demand from 01/01/2016 depriving of the employees of other sectors leaving them in distress and frustrations.

This is really a step motherly treatment by the government towards other sectors like Public Sector Banks, Public Sector Undertakings, Public Sector Insurance, Private Sectors etc. The main purpose of Gratuity is the Social Security Welfare Measure towards Employees in all sectors. Every Employee has bonafide right to be treated equally with others in the same group of society

The Government, if it is really interested in the welfare of the employees in the other sectors like Public Sector Banks, Public Sector Undertakings, Public Sector Insurance, other Private Sectors etc. should come forward with a reasonably favorable decision of changing the effective date immediately to 01/01/2016. It may also be noted that recently the Government of Tamil Nadu implemented 7th Commission Pay Scale to its employees have extended the benefits from 01/01/2016.An appeal be made hoping that the government listens to its citizens and responds positively to every genuine demands for which I also appeal to all Trade Unions to represent the work force on this count and help them to secure their legitimate legal right and get justice for this GENUINE DEMAND and necessary legal advice may be sought from a lawyer or group of lawyers in this behalf on subsidized professional fee or on pro-bono (free) legal services. 

article written by 

Bhagwan Dass Ahuja