Gratuity to be made portable: Know how Modi govt planning to tweak employment laws

New Delhi, July 22: This will definitely leave a big smile on the face of working class people of the country.

Narendra Modi led Government which is known for its pro people schemes, including skill India and other projects recently, is now planning something big to benefit a large section of the society.

Working men always complains of losing their gratuity money in particular company when they leave the place. Similarly a working woman whimpers that she was not given ‘required' maternity leave as suggested by the doctor during pregnancy.

But these complaints will be over soon, as Modi government is contemplating to tweak certain employment laws.

What is the plan?

According to reports, the maternity leave period will be extended from three months to six months and gratuity money will be made portable soon. In addition to these, changes in the Payment of Bonus Act will also be done, which will help employees to get double bonus from the company.

These benefits will be brought by changing incumbent employment rules, Maternity Benefits Act of 1961, the Payment of Gratuity Act of 1972 and payment of Bonus Act of 1965.

It is believed that Government is trying to kill two birds with one stone. At one hand the move will help it to earn the goodwill of the working class and also help to consolidate government's pro-reform image.

While speaking on the move, senior labour ministry official was quoted by TOI as saying, "The changes in the Payment of Bonus Act would raise the salary limit for getting a bonus from Rs 10,000 per month to Rs 19,000, and are at an advanced stage with a draft Cabinet note being moved earlier this month for comments from ministries".

Maternity leave

According to present rule, a woman employee has to be given three months (4 weeks) of leave during pregnancy.

Though multinational companies like Accenture and Flipkart offer 5-6 months leave to new mother, but the company is not bound to do so.

Keeping in mind pre and post pregnancy problems of ladies employees, Government is now planning to make some changes in the incumbent rule.

Acknowledging the report, one of the official said, "The ministry of women and child development has been pursuing this with us extensively as it is primarily responsible for women's welfare, so we are framing a proposal to kick off talks with employers and trade unions on enhancing the maternity leave to 24 weeks".

You may not lose your Gratuity money

Currently a big worry to employees is that they lose their hard earned gratuity money after leaving the company. The reason being they had to serve at least 5 years in the particular company to become eligible to claim gratuity money. Government is planning to do away this rule by either reducing number of years or make the money transferable to other company.

"While we are examining the possibility of reducing the five-year eligibility for gratuity benefits, this requirement would be redundant if we allow gratuity to be transferred from one job to another. So we are looking at both the options," the official said to TOI.

One India News