Important Legal Aspects for Employee and Employer under the payment of gratuity act India

The Provision of Gratuity Act is a contractual reward given to workers who have worked for at least five years on an ongoing basis. Based on the length of his complete employment, which is a lump sum charged to an employee. The gratuity payment is payable to an employee following cessation of employment (either by dismissal, death, retirement, or termination, etc.) on the basis of the calculation of the last drawn salary. It is applicable where ten or more persons are employed or were employed, on any day of the preceding twelve-month

An employee who has worked for no less than five years shall be entitled to gratuity for his retirement or retirement or resignation, or for his death or injury. Where the cessation of the employment of any person is due to death or injury, a pre-requisite of completion of continuous service of five years shall not be required. In the event of an employee's death, the gratuity owed to him shall be paid to his nominee or, in the absence of that appointment, to his heirs.

The gratuity shall be due on termination of employment to an employee after undertaking continuous service for no less than five years. A person shall be said to be in continuous employment for a span of time whether he has been in continuous employment for that period which requires activities that may be disrupted due to sickness, injury, leave, a departure from duty without leave, lay-off, strike or lock-out or termination of employment not due to the negligence of the employee, whether such continuous or interrupted service has been done or not.

Gratuity is calculated at 15 days' wages last drawn by the employee for each completed year of service. The monthly Basic Salary is divided by 26 and multiplied by 15. In computing a 

completed year of service the period in excess of six months shall be taken as a full year. 

Gratuity = Monthly salary / 26 x 15 days x No. of years of service. 

The maximum amount of gratuity payable under the Act is Rs.20 Lacs.

The Payment of Gratuity (Amendment) Act, 1987 has prescribed provisions for compulsory insurance for the employer’s liability for payment towards the gratuity under the Act from LIC under the LIC Act,1956, or any other prescribed Insurer.

Each employee who has completed one year of service is required to make a nomination for the purposes of gratuity in case of his death. There can be more than one nominee. (Form F). Nominees may be changed at any time by the employee, by giving written notice to the employer. (Form H). If no nomination has been made, it shall be paid to the legal heirs of the deceased employee.

In the execution of any decree or order of any civil, income, or criminal case, no gratuity due under the Act shall be liable for attachment. However, if the employee has agreed to a deduction as a gratuity from the balance owed, the amount would be restored.

Legal Framework for Employment Law Strategy

We help clients in developing and implementing a comprehensive employment strategy and models in line with the Legal Framework of the Country. Our team conduct’s an in-depth study of your business model and suggests best suited Legal framework/model onboard and retain talent to ensure your business objectives are met with complete compliance and the least cost. We help design the employment model and also support documentation and compliance for the same.

We draft and review employment agreements such as offer letters and employment agreements, confidentiality agreements, IP assignment agreements, non-compete and non-solicit agreements, training bonds, consultancy agreements, secondment and deputation agreements, severance and release agreements, Quit Claims, and more to go with the framework you adopt.

We’ve effectively implemented industry best practices and tailored our services to our client’s needs over the years.

Must have clauses in a Data Processing Agreement (DPA)

Data is the new money in this era of globalization, it is frequently remarked. As a result, there are thousands of businesses that deal with and interchange enormous amounts of data nowadays, making it crucial to have proper security measures to safeguard such data at multiple levels. One such crucial step that addresses issues like data security, data breach, and data abuse is the data processing agreement. A DPA is already required in some regions of the world, such as the European Union (EU), for data controllers and data processors. This demonstrates how crucial DPAs are. In this essay, we'll talk about the key provisions that every DPA should have.

An official contract between the data controller and the data processor is known as the data processing addendum. It may also be a contract between a controller and a controller, a controller and a joint controller, or a data processor and a subprocessor. The DPA outlines specific guidelines regarding the identity of data subjects, the types of information processed, the categories of data processed, who collects client personal data, how it is handled, where it is stored, for how long it is stored, how it can be retrieved, deleted, processed, and protected, and what steps should be taken by the parties to prevent data breaches.

The following are key clauses 

• To prevent any difficulties in interpretation, DPA should include definitions of some key terms, according to one fundamental clause. The parties should agree to include key definitions for the following terms: Applicable Laws, Client, Client Personal Data, Contractor, GDPR, Restricted Transfer, Services, Subprocessor, Controller, Data Subject, Member state, Personal Data, Personal Data Breach, Processing, Processor, Rights of Data Subjects, Supervisory Authority.

• Roles and responsibilities of a controller should be defined

• Applicable legislation, such as the GDPR, should govern processing.

• Unauthorized use, access to the client's personal data, loss of data, or unauthorized disclosure or alteration of such data on the systems managed by the processor.

• Who is included in the scope of the DPA is specified in this clause. The data subjects may include people who are EU citizens whose personal information was acquired.

• Each party will make an effort to uphold their respective responsibilities under any relevant Data Protection standards.

• This provision must include both the DPA's start date and its end date. Any day after May 25, 2018, is acceptable.

• Processing is any action taken on a person's personal data. It must be made apparent exactly what processing tasks the processor is carrying out. That is, whether the processing entails the gathering, recording, organization, structuring, storage, adaptation, retrieval, big data analysis, consultation, disclosure, and availability of certain data, as well as the alignment, combination, matching, restriction of use or access, individual profiling, erasure or destruction, handling of media, use of data, etc.