Monday, June 7, 2010

Recent AMENDMENTS in ESI and GRATUITY

Ministry of Labour & Employment vide G.S.R. 394(E), dated 20th April,
2010 has made Employees State Insurance Act, 1948 read with ESI
(Central) (Amendment) Rules, 2010 applicable to employees whose wages
does not exceed Rs. 15,000/- (Fifteen Thousand Only).The said
notification shall come into effect from 1st May 2010.

The Payment of Gratuity (Amendment) Act, 2010 is notified in Official
Gazette on 18th May 2010, amending the Payment of Gratuity Act, 1972
with revision in maximum ceiling from Rs. 3.5 lac to Rs. 10 lakhs.
Whereas the date of effect of the revised ceiling may be decided by
the Central Government through Official Gazette as per THE PAYMENT OF
GRATUITY (AMENDMENT) ACT 2010.Notification in Effective Date for
Revision of Gratuity Amendment Act to Rs. 10 lakhs: Notification in
Official Gazette as on 24th May 2010

The Payment of Gratuity Act, 1972 definition of the term “employee”
under Section 2 got widened.  It is no more the old definition of
persons employed in administrative or managerial capacity.

The new definition is as follows,

"Employees" means any persons [NOT being an Apprentice] employed for
wages in any kind of work (manual or otherwise) or in connection with
work of factory, mine, plantation, oilfield, railway company, port or
other establishment.

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