re : PAYMENT OF GRATUITY
company secretary
Dear Members,
Please let me know answers to below query for applicability of GRATUITY ACT 1972.
Kindly quote the relevant sections from the Act, as applicable.
CASE : U.S. company and its branch office in India. 10 employees in total, out of them 1 is expat employee. He is U.S. citizen, but in India since April 2011 and working in branch office in expat assignments. Following below questions for applicability of gratuity Act, 1972
1. 1. Gratuty Act applicable to branch office of foreign company??
2. 2. If total no. of employee is more than 10 (including expat), whether gratuity act will be applicable
3. 3. Will gratuity Act applicable to expat employees also ?
4. 4. Two employees have been sent to USA for 2.5 years on separate agreement whether the period of US employment will be counted ?
5. 5. If US period will be counted then how to make calculation i.e. which amount will be considered for gratuity computation ?
CS.Omkar
Dear Members,
Please let me know answers to below query for applicability of GRATUITY ACT 1972.
Kindly quote the relevant sections from the Act, as applicable.
CASE : U.S. company and its branch office in India. 10 employees in total, out of them 1 is expat employee. He is U.S. citizen, but in India since April 2011 and working in branch office in expat assignments. Following below questions for applicability of gratuity Act, 1972
1. 1. Gratuty Act applicable to branch office of foreign company?? Views: Yes. Sec 1(3)(b) of the Gratuity Act refers to Shop or establishment within the meaning of any law in force in a State. Term shop or establishment are defined under concerned state "Shops and Commercial Establishments Act" which is wide enough to cover branch office of a foreign company.
2. 2. If total no. of employee is more than 10 (including expat), whether gratuity act will be applicable Views: Yes. If total employees employed are 10 or more, Gratuity Act is applicable [Sec 1(3)(b)].
3. 3. Will gratuity Act applicable to expat employees also ? Views: Yes, if he is on register of branch office, i.e., employed in branch office which is an establishment a per provisions sited in query 1 above. [Sec 2(e)]
4. 4. Two employees have been sent to USA for 2.5 years on separate agreement whether the period of US employment will be counted ? Views: It depends on arrangement in which employee is sent outside or treatment of his employment in US. If documentation is like employment offered by US entity and employee resiging from Indian Branch and joining US entity, settle gratuity while sending to US (if eligible) and not required to count their stay in US for gratuity. It is preferred to inform employee at first discussion on offer of employment to him in US on gratuity settlement.
5. 5. If US period will be counted then how to make calculation i.e. which amount will be considered for gratuity computation ? Views: Not come across a case where companies sending for long term with employee on their roll and employee resigning while in employment outside India. If employee has resigned after completing 2.5 years (term of deputation mentioned by you) and returning to India, settle gratuity as per his Basic + DA paid in India.
--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
Find eNewsletters of ICSI Mysore at: www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.