Nearly three fold raise in gratuity ceiling-will it augur well or bode ill?
The literal meaning of gratuity is: something voluntarily given in return for favour or service, as a recompense or acknowledgment. It is paid in addition to salary, bonus, commission etc; when the employee leaves the service of employer. It is lump sum payment made based on the service of an employee either on retirement or death. It shows gratefulness and appreciation on the part of employer rewarding employee for hard work and also ensuring excellent service in future. Way back in 1968 the Supreme Court in Delhi Cloth and General Mills Company Ltd. said that the object of providing a gratuity scheme is to provide a retiring benefit to the workmen whop have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. In industrial jurisprudence, however, it has been described as deferred wages. Before the enactment of Payment of Gratuity Act, 1972, its payment was very vague and uncertain. It has now to be compulsorily given. Like