Introduction The Code on Wages, 2019 has introduced a universal definition of wages that has been incorporated across the three other labour Codes as well. This definition is a marked departure from the multiple varied definitions of the term across different enactments. While the attempt to universalize the definition of such a key term is commendable, much remains to be seen with regards to its effects on wage structuring, payroll, and statutory benefits. The new…
An Overview of Procedural Norms The Payment of Gratuity Act, 1972 read with the Payment of Gratuity (Central) Rules, 1972 provides for a complex procedure when it comes to application for and processing of gratuity payments. Procedural norms under Section-4 of the Act stipulate that gratuity shall be paid to an employee on the termination of his employment after he has rendered continuous service for not less than five years. Section 2A of the Act…
Introduction The roots of the term gratuity can be traced to the French word gratuité or from the Latin term gratuitus, both the terms loosely mean the voluntary payment of money for favour or services. At its most basic level, payment of gratuity is a sum tendered to employees following longevity of service and is generally paid towards their retirement fund. In foreign countries it is also used synonymously with tipping, however, in India it…