Login With Google
Cut gratuity period to one year: Panel
Why is it in news?
- The Parliamentary Committee on Labour has mentioned about the eligibility period for gratuity for employees.
- The panel has recommended that the eligibility period for gratuity payable to an employee on termination of his employment should be reduced to one year.
- Currently the gratuity period is of five years.
More from the Panel:
- The facility of one year gratuity period should be extended to all kinds of employees, including contract labourers, seasonal workers, piece rate workers, fixed term employees and daily/monthly wage workers.
- There should be a robust redressal mechanism in case an employer does not pay up the dues.
- Social Security Code should have provisions to hold the employer liable for payment of gratuity to the employees within a stipulated time frame.
- The social security code should empower the Central government to reduce the employee’s contribution to EPF in exceptional circumstances like disasters in terms of the Disaster Management Act, including pandemics.