CBOA, AP CIRCULAR NO. 15 DATED 24.05.2010

CBOA, AP issued its circular No. 15 on Bipartite Settlement and Payment of Gratuity (Amendment) Act 2010. We are reproducing the same here for our readers.

Circular No. GS: 2010: 015                   Date: 24.05.2010

TO ALL OFFICERS                                  PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. CIRCULAR/GS/2010/8 dated 21-05-2010 received from our Federation for your information.

With best regards                                                           

Yours sincerely

Sd/-

(C.A. MALLIKARJUNA RAO)

GENERAL SECRETARY

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We reproduce hereunder circulars received from AIBOC for your information:

“IMPLEMENTATION OF 9^TH BIPARTITE SETTLEMENT PROCESS ON – IBA ISSUES GUIDELINES TO BANKS GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS’ AWAITED

Friends, we are happy to inform our members that the process of implementation of the 9^th Bipartite is on.  The Indian Banks’ Association has since issued detail communication to all the banks in respect of the Award Staff who   signed 9^th Bipartite Settlement under the provisions of the Industrial Dispute Act, 1947, which does not require further approval of the Government. The communication in regard to the payment as well as the recovery towards the contribution to Pension Fund on account of the 2^nd Option is as under:

An amount equal to 2.8 times of the “Pay” for the month of November, 2007 be withheld and kept in a suspense account for crediting to the Pension Fund in case the employee opts to join the Pension Scheme complying with the terms of the Settlement dated 27^th April, 2010.

If any employee gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme in terms of the Settlement, 2.8 times of the November 2007 pay as above need not be withheld.

Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund.  The arrears withheld in respect of those who did not opt for pension within the stipulated time, be refunded to them.

No portion of arrears be withheld in respect of non-optee employees who retired from 1^st November 2007 to 27^th April 2010.  They will be joining the Pension Scheme by making contribution towards funding gap as retired employees in terms of the Settlement.

We are keeping in touch with the IBA to ascertain the latest position as regards in-principle approval, pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9^th bipartite settlement having been already initiated, we are confident that the process in respect of the Officers will get speeded up now.

In the meanwhile, we have been receiving anxious enquiries on implementation of 2^nd Option on Pension. The process of obtaining in-principle approval from Govt. is also in progress.  We therefore advise members to have patience for a few days more as the instructions are awaited at the earliest.  We also understand that the bank managements have already initiated necessary steps and the calculations have since been kept ready so that no delay takes place once the guidelines are received from the banking department for the implementation of the 9^th bipartite.

Friends, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance minister should not take much time since the Government is conscious of the pressures that are built across the country, awaiting implementation of the 9^th bipartite. 

We note to keep all our affiliates/members informed of further details in due course.”

“THE PAYMENT OF GRATUITY (AMENDMENT) ACT 2010

We are glad that, Ministry of Law and Justice have issued notification in Official Gazette on 18^th May 2010, amending the Payment of Gratuity Act with revision in maximum ceiling from Rs. 3.5 lac to Rs. 10/- lacs.  Whereas the date of effect of the revised ceiling may be decided by the Central Government through Official Gazette.

We have sent a letter to the Labour Minister for State, reiterating our request for revision of the ceiling from 1^st January, 2006.  A copy of the communication is reproduced hereunder. We shall keep you advised of further developments, in due course.”

 “We are grateful to receive your letter DO No.2/10/MOB/L&E/VIP/2010 dated 13^th May, 2010.

We are also thankful to the Ministry of Law and Justice in publishing the amendment to the Payment of Gratuity Act in the Gazette of India, extraordinary of 18^th May 2010, enhancing the maximum ceiling on gratuity from Rs. 3.5 lacs to Rs. 10 lacs.  As regards date of effect of the said amendment, the Central Government may decide by notification in the Official Gazette.

We therefore, once again request your goodself to arrange for the revision to come into effect in the Banking Industry from 01.01.2006, as in the case of Central Government employees, for which act of kindness we shall ever remain grateful to you and the Government of India.”

The reply from Hon’ble Minister of State for Labour & Employment is reproduced overleaf.

Yours sincerely,                                                                                                   

(D.S. BHADAURIA)

GENERAL SECRETARY