Amendment in Gratuity Act should be from Jan'16 when it was implemented for Govt Employees

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The Hon’ble Minister of Labour introduced in Loksabha the following bill  on 18th Dec’17.

“THE PAYMENT OF GRATUITY (AMENDMENT) BILL 2017” (Bill no 205 of 2017)

The Payment of Gratuity (Amendment) Bill, 2017, inter alia, proposes to amend—

(a) section 2A of the Act so as to empower the Central Government to notify the period of maternity leave in case of female employee as deemed to be in continuous service in place of existing twelve weeks;

(b) section 4 of the Act to substitute the words "ten lakh rupees" with the words "such amount as may be notified by the Central Government from time to time".

For Govt. Employees (both Central & State) the proposed amendments have already come into effect w.e.f. Jan’2016 with acceptance of Pay Commission Report.  Thus, in their case the period of maternity leave and Gratuity Ceiling both have already been enhanced from six months to twelve months and from Rs. Ten Lac to Rs. Twenty Lac respectively. In the bill the Government has also taken care to ensure that in future such benefits accrue simultaneously to all employees (in Govt, public as well as private sector).

This is indeed a very laudable amendment, but in the present situation the amendment will become applicable to employees other than Govt. Employees from the date of its notification in Gazette of India. Thus, it will end up ignoring all the employees who availed Maternity Leave after Jan’16 and those who retired after Jan’16. In order to be fair to this class of employees I request you to kindly press for an amendment in the bill to ensure that for non-Govt employees also these two amendments are made applicable from Jan’2016 instead of date of notification in gazette.


(Arvind Mohan)

Retired Dy General Manager

Union Bank of India