Changes in Gratuity rules tabled in Parliament: Govt
On December 18, the Centre has tabled Gratuity (Amendment) Bill, 2017, in the parliament which proposed amendments to the existing gratuity rules. The amendments would allow the government to notify the period of maternity leave period for "female employees as deemed to be in continuous service in place of existing twelve weeks".
According to the Statement of Objects and Reasons of the bill, the amendment would empower the central government to enhance the period of existing twelve weeks to such period as may be notified by it.
After the 7th Central Pay Commission, the ceiling of gratuity amount for central government employees has been increased from Rs 10 lakh to Rs 20 lakh.
"Therefore, considering the inflation and wage increase even in case of employees engaged in private and public sector, the entitlement of gratuity is also required to be revised for employees who are covered under the Act. It has also been proposed to empower the central government to notify the ceiling proposed, instead of amending the said Act, so that the limit can be revised from time to time keeping in view the increase in wage and inflation, and future Pay Commissions," the Statement of Objects and Reasons of the bill said.
The Payment of Gratuity Act, 1972 is applicable to every factory, mine, oilfield, plantation, port and railway company; every shop or establishment within the meaning of any law in which ten or more persons are employed, or were employed, on any day of the preceding twelve months; such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
Once the Act becomes applicable to an organization i.e. once an establishment hires more than 10 employees, the Act would continue to apply to the same even after the number of employees gets reduced below the minimum requirement. The Act extends to the whole of India excluding the State of Jammu and Kashmir.
In March, the Maternity Benefit (Amendment) Bill 2017, which is an amendment to the Maternity Benefit Act, 1961, received Presidents nod.
The amended Act has increased the duration of paid maternity leave available for women employees from the existing 12 weeks to 26 weeks. The benefit could be availed by women for a period extending up to 8 weeks before the expected delivery date and remaining 18 weeks can be availed post childbirth. For women who are expecting after having 2 children, the duration of paid maternity leave shall be 12 weeks (i.e., 6 weeks pre and 6 weeks post expected date of delivery).
