New Rules and Regulation For Gratuity by Central Government

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New Rules and Regulation For Gratuity by Central Government on Labour, in their report on Code on Social Security, 2019, has approved that the Eligibility Period for Payment of Gratuity to an employee after termination will be reduced. The Government also considered for Reduces the Eligibility period for gratuity from five to one consecutive year. It happens in the wake of an extensive reduction in all sectors due to the COVID-19 pandemic-induced economic slowdown.

The committee, which proposed its report to Lok Sabha Speaker Om Birla Friday, also said the provision of gratuity should be continued to all sorts of employees, including contract labours, seasonal workers, piece-rate workers, fixed-term employees and daily wage workers.

Appeal for reducing the threshold for gratuity by Trade Unions 

Considering the migrant crisis that had unfolded in the wake of a nationwide lockdown. The parliamentary panel has advised for “inter-state migrant workers” in the Code on Social Security, 2019 a welfare.

  • Moreover, labour market experts given the five-year threshold statement for the interest of employees.
  • Trade unions claim some firms fire workers before they become eligible for gratuity payments to save on costs.
  • However, the need for an agricultural, non-agricultural, contract, and self-employed workers.
  • Register under one body rather than multiple organizations. 
  • Now, the committee has stressed if an employer does not pay up the dues.

New EPF Rules will Change your Monthly Salary

Misuse of Building Labours Welfare Fund

The parliamentary panel reached down heavily on states for under-utilization and misuse of the Building and Construction Workers Welfare Fund. Labour welfare concern that states are sitting on thousands of crores of rupees received towards the welfare of construction workers. Even as labours have left to fend for themselves amid the prolonged lockdown period arising out of the Covid-19 pandemic. So, However, there should not be any tolerance, as the Trade Unions demanded to Reduce Gratuity Period to the needy and deserving employees.

Central Government Concern About EPF Act

New Rules and Regulation For Gratuity by Central Government about the EPF Act that applies to all the laboursworkers, and self-employed workers. If the Firm employs less than 20 people, you have the option to register under the scheme. EPF registration needs the details of your company and the details of each of the company’s owners.

Also, the Government has approved that the social security code should reduce with employee’s contribution to EPF in exceptional circumstances like disasters in terms of the Disaster Management Act, including pandemics. Moreover,it will enable the Government to give relief to the affected persons in COVID-19 like pandemics.

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