AIBOC CIRCULAR NO. 56 DATED 04.05.2010

AIBOC issued its circular No. 56 on Amendment to Gratuity Act – 1972. We are reproducing the same here for our readers.

CIRCULAR NO.56                                                             04.05.2010

TO ALL AFFILIATES/MEMBERS:

AMENDMENT TO GRATUITY ACT – 1972 - REVIEW OF CEILING FROM RS.3.5 LAC TO RS.10 LAC

We are happy to inform all our members that the ceiling under the Payment of Gratuity Act 1972 has been revised from Rs.3.5 lacs to Rs.10 lac with the passage of the Bill in the Loka Sabha for amendment on 3.4.2010. The bill has to be passed at Rajya Sabha also. Our members may recollect that it was the initiative of the Confederation, which prompted the Ministry of labour to take necessary action at the earliest for amendment of the Gratuity Act to this effect.

The leadership of the Confederation met the Deputy Minister of labour Shri. Harish Rawat and submitted a Memorandum requesting him for the immediate action for effecting necessary amendment to the Payment of Gratuity Act to raise the ceiling to Rs.10/- lacs and also to make it effective from 1.1.2006 as was done in the case of the central civil servants.  We are now given to understand that as regards the date of effect, it would be dealt by the Labour Ministry while issuing the necessary notification.  We have therefore sent yet another communication to the Deputy labour Minister, Government of India, New Delhi with an appeal to consider our request for making the amendment effective from 01.01.2006. A copy of our communication is enclosed.

All our affiliates / members are requested to await further developments in the matter.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/140/10                                                                        04.05.2010

To,

Shri.Harish Rawat,

Hon’ble Deputy Minister of Labour,

Government of India,

NEW DELHI.

Dear Sir,

AMENDMENT TO THE GRATUITY ACT – 1972 - REVISION IN CEILING FROM RS.3.5 LAC TO RS.10.LAC

We are thankful to you for the immediate action taken in response to our representation for the amendment to the Payment of Gratuity Act 1972, revising the ceiling from Rs.3.5 lacs to Rs.10.00 lacs in tune with the acceptance of the recommendations of the 6^th Pay Commission for the Central Government employees.  

We are given to understand from the Press that the amendment has been moved by your goodselves and has been adopted by the Parliament with voice vote extending the benefit of the revision in the ceiling.  We hope that, the bill will be duly passed in Rajya Sabha also.  It was our earnest request to you at the time of our meeting you in person and handing over our representation that the benefit of the revision should be given on par with the Government employees who got this benefit from 1.1.2006 as a sequel to the acceptance of the 6^th Pay Commission recommendations. The members of the banking fraternity all over the country are eagerly awaiting the issue of necessary notification giving the date of effect as 1.1.2006. It is in this background; we once again seek your indulgence in the matter and request you to ensure that the notification issued in this connection will take care of our request for the date of effect as 1.1.2006, for which act of kindness the entire bank officers’ fraternity will remain grateful to you Sir.

We are hopeful that our request will be responded positively.

Thanking you and with Regards,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY