Revised Salary Structure in India - All You Need to Know for Pay Structure (techjockey.

com)
Leave Policy Guide For HR Managers (greythr.com)
Sample Corporate Travel Policy for Employees and procedure |HRhelpboard

Types of leaves under Labour Law

 CASUAL LEAVE Every worker shall be entitled to casual leave with full wages for 10
(ten) days in a calendar year. Such leave shall not accumulate and carried forward to
the succeeding year.

 SICK LEAVE Every worker, shall have a right to claim sick leave with full wages for
14 (fourteen) days in a calendar year. ...

Types of holidays Under Labour Law

There are two types of holidays available for workers under the act which are:

1. Festival holidays
2. Weekly holidays

Festival holidays:

Every worker will get 11 (eleven) days of paid festival holiday in a calendar year. In case
of working on any festival holiday, a worker will get two day’s additional compensatory
holidays with full pay and a substitute holiday.

Gujarat

Every employee who has served for a period of 240 days or more during a continuous
period of 12 months in any establishment is entitled to leave with wages for a period
of 15 days. This leave will be allowed in the subsequent 12 months. And, they may
accumulate up to a maximum period of sixty days (two months).
Gujarat
Leave for Shops & Establishment

Type Of Leave Leave Entitlement

Sick Leave 7 days

Casual Leave (Days) 7 days

Earned / Privileged Leave 18 days (after 240 days of continuous service)

Working Hours for Shops & Establishment

Normal Working Hours Nine hours in a day and forty-eight hours in a week

Interval For Rest After five hours of work an interval of rest of at least half an hour

Maximum Over Time Hours One hundred and twenty-five hours in a period of three months

Spreadover Hours Ten and half hours in a day

Rate of OT Wages Twice the ordinary rate of wages

 In general, casual leaves can be availed for a minimum of half a day to a maximum
of three days. Beyond this, leaves should be availed as earned leave or privileged
leaves. ...

 If the employer is registered under the Shops and Establishment Act, then the
employee is qualified to get casual leave of six days.

 Casual leaves cannot be carried forward to the next year. ...

Leave Rules For Gujarat

Here is a snapshot of various leave rules as per the Gujarat Shops & Establishments

Act.

Item Qty Remarks

Annual / Privileged / 21 days for every 240 days worked

Earned Leave
(AL/PL/EL) 5 days for every 60 days worked

Casual Leave (CL) 7 days

Sick Leave (SL) 7 days

Maximum AL/PL
that can be carried 63 Days
forward

Working hours in a
9
day

Total hours in a
48
week

Commercial
Commercial Establishments: Rest after 5
Establishments
Rest Interval hours of work at least 30 minutes // Mfg.
: 30 minutes //
process or in any other case at least 1 hour
Others: 1 hour

PAID VACATION/ ANNUAL LEAVE IN GUJARAT

Every employee who has been employed for more than three months in any year,
should be allowed leave, consecutive or otherwise, for a period of less than or up to five
days for every 60 days on which he has worked during the year.
Every employee who has worked for not less than two hundred and forty days during a
year should be allowed leave, consecutive or otherwise, for a period of at least twenty-
one days.

Having gone on leave for a period more than twenty-one days, every employee who has
accumulated leave should be entitled to surrender any period of leave, not exceeding
twenty-one days; and such employee should be entitled to payment of wages for that
period of leave.

In addition, every employee should be entitled to casual leave for seven days in a year
with wages. Every employee should be paid for the period of their leave at a rate
equivalent to the daily average of their wages for the days on which they actually
worked during the preceding three months.

Every worker should be permitted to accumulate earned leave up to a maximum of

sixty-three days.

Every worker who has worked for a period of two hundred and forty days or more in a
shop or establishment during a calendar year should be allowed during the subsequent
calendar year, leave with wages for a number of days calculated at the rate of one day
for every twenty days of work performed by him during the previous calendar year.

Where the employer refuses to sanction the leave, which is due under the above
subsection when applied fifteen days in advance, then the worker should have a right to
encash leave in excess of sixty-three days, in two cases:

i) if the employee – being entitled to leave other than casual and festival related is fired
by the employer before allowed the leave

ii) if the employee applied for the leave but got turned down, and he quits the job due to
death, retirement, resignation or permanent disability, then the employer needs to pay
him full wages for the period of leave.

Source: Section 35 of the  Bombay Shops and Establishments Act, 1948; Section 18 of

the Gujarat Shops and Establishments (Regulation of Employment and Conditions of   Service)
Act, 2019
1. All travel, domestic and international must be approved 30 days prior to
expected travel date by the team leader and reporting manager.

2. All approvals are based on costing approved at the time of submission, if

there is a change, a fresh travel request will have to be applied for with
expedition.

3. If there is a travel allowance advance, this must be submitted 15 days prior

to the finance department from your team leader, after approval from the
reporting manager.

4. Only food bills can be reimbursed. Alcohol and any other expenditure are
not allowed to be expensed.
Gratuity is a sum of money that employers pay their employees as a sign of gratitude for
the service they have performed over years. Gratuity is payable under the payment of
the Gratuity Act, 1972. Gratuity is paid to employees who have completed five or more
years of service in their respective companies. The basis for the calculation of gratitude
is the last drawn salary and year of service provided by the employee. 

If a company, be it public or private sector has 10 or more than 10 employees working

in their organisation, must pay gratuity to its employees. In this article, we will learn all
that we need to know about gratuity rules in India, their eligibility, and the new gratuity
rules in 2022.  

Key insights:

 The purpose of the Gratuity Act is to provide a monetary reward in the form of
gratuity to employees for providing service.
 The employer is responsible for the payment of gratuity.
 Employers must pay a gratuity amount to employees.
 Gratuity is a part of the cost to the company (CTC) of an employee.
 Income tax is applicable on payment of gratuity as it is viewed as a part of the
salary.

What are Gratuity Rules in India?

The gratuity rules are formed under the payment of gratitude act, of 1972. On 21st
August 1972, this rule was passed by the parliament and came into force on 16th
September 1972.

Gratuity rules in India are mentioned below:

Gratuity is payable if a company has 10 or more employees:

Companies with a workforce of 10 or more than 10 employees on a single day in the

previous 12 months are subject to pay gratuity. Even if the employees of the company
are reduced to below 10, it will still be liable to pay the gratuity, as per the Gratuity Act. 

Employees have to serve at least 5 years of service to be eligible for gratuity: 

Employees who have completed 5 years of service in the company are eligible for
gratuity. However, the condition is not applicable in situations like the death or
disablement of an employee. 

Calculation of gratuity is covered under the act: 

As we know, Companies with 10 employees in a day in the foregoing 12 months are

covered under this act. 
Gratuity = (15× last drawn salary × number of completed years of service)/26

 The last drawn salary comprises basic and dearness allowance (DA) and no
other part will be included in the salary. 
 Completed years of service comprise any year where an employee has rendered
services for more than six months.
 You can you INDmoney's Gratuity calculator for ease.

Gratuity can be paid before retirement:

Generally, gratuity is paid after retirement but one can avail of gratuity under certain
conditions such as:

 One can ask for gratuity while switching jobs after completing 5 years of service
in the company. 
 If an employee dies while in service, the gratuity amount will be paid to the
nominee or legal heir. 
 An employee is entitled to gratuity on his disablement due to an accident or a
disease. 
 An employee is entitled to get gratuity if he has opted for VRS. 
 Gratuity is payable to an employee even on the termination of his employment
but one can not claim gratuity in case of discontinuation of employment, fraud,
theft, assault, rape, or molestation. 

Gratuity paid to a legal heir or widow of an employee will be exempted from tax:

When an employee passes away, the gratuity paid to his wife or legal heir will be
exempt from tax. 

Gratuity up to 20 lakhs is exempted from taxation: 

Gratuity up to 20 lakhs is exempted from taxation which is paid by the organisation that
comes under the Payment of Gratuity Act, 1972, and the gratuity payment which comes
under central, state, and local government bodies are exempted from taxation as per
gratuity rules 2021. 

Employers cannot deny paying gratitude to their employees even during bankruptcy:

An organisation must pay gratuity to its employees even during bankruptcy and no court
order can stop an employee from availing of the benefits of gratuity payment.
Gratuity Eligibility in India
Below are a few instances that describe when employees are eligible to receive gratuity.

 When the employee has completed their 5 years of continuous service in the
respective company. 
  An employee is eligible to get gratitude at the time of his retirement.
 An employee passes away or suffers any disease or accident.
 An employee should be eligible for superannuation( under this program
employee's fund deposited grows without any tax implications, until retirement or
withdrawal.

What is the Payment of Gratuity Act, 1972?

As per the Indian law of payment of Gratuity Act, 1972, Corporation pays a one-time
gratuity to retired employees and this law applies to railways, ports, oilfields, factories,
shops, and mines. The gratuity is paid to employees who are covered with the term “
employee” under section 2(e) of the act in section 4 of the Payment of Gratuity Act,
1972. 

The gratuity includes 15 days' wages for every year and the service provided by the
employee should be over six months or a partial year. The main objective of enforcing
this act is to provide financial and social security to employees after retirement. It is a
security act envisioned for those employees who provide services for a long time. 

Gratuity New Rules 2022

The new labour law has been implemented on 1st July 2022 for all organisations and
corporations. As per the new labour law, the working hours, Provident fund, and in-hand
salary has shrunk. The biggest impact of this law will be on take-home salaries. 

 As per the gratuity rules 2022, organisations must ensure that 50% of employees'
CTC (cost to company) is basic pay and the remaining 50% comprises employee
allowances, house rent, and overtime. And if the company pays any additional
allowances or exemptions that exceed 50% of the CTC, it will be treated as
remuneration.

 As per the gratuity new rules 2022, the law restricts the maximum basic pay to
50% of CTC which will increase the gratuity bonus that is to be paid to
employees and the gratuity amount will be calculated on a large salary base that
comprises basic pay and allowances.

 Employees get paid for working overtime which is working for 15 minutes or
more.
 The government has made it clear that the work capacity is a maximum of 48
hours.

To conclude, Gratuity plays a vital role for employees as it acts as a post retirement
plan. Employees who are working in the public and private sectors should be aware of
these gratuity rules to make sure that they can avail maximum benefits from it. It is a
financial incentive provided to an employee for rendering service and his devotion to the
company.

 What are the new gratuity rules for private sector employees?
 What can employees do if gratuity is not paid?
 How gratuity can be calculated?

The formula to calculate gratuity is Gratuity = (15 × last drawn salary × working
tenure)/30
 

 Who can be eligible to receive gratuity in India?

Gratuity is a sum of money that employers pay their employees as a sign of gratitude for
the service they have performed over years. Gratuity is payable under the payment of
the Gratuity Act, 1972. Gratuity is paid to employees who have completed five or more
years of service in their respective companies. The basis for the calculation of gratitude
is the last drawn salary and year of service provided by the employee. 

If a company, be it public or private sector has 10 or more than 10 employees working

in their organisation, must pay gratuity to its employees. In this article, we will learn all
that we need to know about gratuity rules in India, their eligibility, and the new gratuity
rules in 2022.  

Key insights:

 The purpose of the Gratuity Act is to provide a monetary reward in the form of
gratuity to employees for providing service.
 The employer is responsible for the payment of gratuity.
 Employers must pay a gratuity amount to employees.
 Gratuity is a part of the cost to the company (CTC) of an employee.
 Income tax is applicable on payment of gratuity as it is viewed as a part of the
salary.

What are Gratuity Rules in India?

The gratuity rules are formed under the payment of gratitude act, of 1972. On 21st
August 1972, this rule was passed by the parliament and came into force on 16th
September 1972.
Gratuity rules in India are mentioned below:

Gratuity is payable if a company has 10 or more employees:

Companies with a workforce of 10 or more than 10 employees on a single day in the

previous 12 months are subject to pay gratuity. Even if the employees of the company
are reduced to below 10, it will still be liable to pay the gratuity, as per the Gratuity Act. 

Employees have to serve at least 5 years of service to be eligible for gratuity: 

Employees who have completed 5 years of service in the company are eligible for
gratuity. However, the condition is not applicable in situations like the death or
disablement of an employee. 

Calculation of gratuity is covered under the act: 

As we know, Companies with 10 employees in a day in the foregoing 12 months are

covered under this act. 
Gratuity = (15× last drawn salary × number of completed years of service)/26
  The last drawn salary comprises basic and dearness allowance (DA) and no
other part will be included in the salary. 
 Completed years of service comprise any year where an employee has rendered
services for more than six months.
 You can you INDmoney's Gratuity calculator for ease.

Gratuity can be paid before retirement:

Generally, gratuity is paid after retirement but one can avail of gratuity under certain
conditions such as:

 One can ask for gratuity while switching jobs after completing 5 years of service
in the company. 
 If an employee dies while in service, the gratuity amount will be paid to the
nominee or legal heir. 
 An employee is entitled to gratuity on his disablement due to an accident or a
disease. 
 An employee is entitled to get gratuity if he has opted for VRS. 
 Gratuity is payable to an employee even on the termination of his employment
but one cannot claim gratuity in case of discontinuation of employment, fraud,
theft, assault, rape, or molestation. 

Gratuity paid to a legal heir or widow of an employee will be exempted from tax:

When an employee passes away, the gratuity paid to his wife or legal heir will be
exempt from tax. 

Gratuity up to 20 lakhs is exempted from taxation: 

Gratuity up to 20 lakhs is exempted from taxation which is paid by the organisation that
comes under the Payment of Gratuity Act, 1972, and the gratuity payment which comes
under central, state, and local government bodies are exempted from taxation as per
gratuity rules 2021. 

Employers cannot deny paying gratitude to their employees even during bankruptcy:

An organisation must pay gratuity to its employees even during bankruptcy and no court
order can stop an employee from availing of the benefits of gratuity payment.
Gratuity Eligibility in India
Below are a few instances that describe when employees are eligible to receive gratuity.

 When the employee has completed their 5 years of continuous service in the
respective company. 
 An employee is eligible to get gratitude at the time of his retirement.
 An employee passes away or suffers any disease or accident.
  An employee should be eligible for superannuation (under this program
employee's fund deposited grows without any tax implications, until retirement or
withdrawal.

What is the Payment of Gratuity Act, 1972?

As per the Indian law of payment of Gratuity Act, 1972, Corporation pays a one-time
gratuity to retired employees and this law applies to railways, ports, oilfields, factories,
shops, and mines. The gratuity is paid to employees who are covered with the term “
employee” under section 2(e) of the act in section 4 of the Payment of Gratuity Act,
1972. 

The gratuity includes 15 days' wages for every year and the service provided by the
employee should be over six months or a partial year. The main objective of enforcing
this act is to provide financial and social security to employees after retirement. It is a
security act envisioned for those employees who provide services for a long time. 
Gratuity New Rules 2022
The new labour law has been implemented on 1st July 2022 for all organisations and
corporations. As per the new labour law, the working hours, Provident fund, and in-hand
salary has shrunk. The biggest impact of this law will be on take-home salaries. 

 As per the gratuity rules 2022, organisations must ensure that 50% of employees'
CTC (cost to company) is basic pay and the remaining 50% comprises employee
allowances, house rent, and overtime. And if the company pays any additional
allowances or exemptions that exceed 50% of the CTC, it will be treated as
remuneration.

 As per the gratuity new rules 2022, the law restricts the maximum basic pay to
50% of CTC which will increase the gratuity bonus that is to be paid to
employees and the gratuity amount will be calculated on a large salary base that
comprises basic pay and allowances.

 Employees get paid for working overtime which is working for 15 minutes or
more.

 The government has made it clear that the work capacity is a maximum of 48
hours.

To conclude, Gratuity plays a vital role for employees as it acts as a post retirement
plan. Employees who are working in the public and private sectors should be aware of
these gratuity rules to make sure that they can avail maximum benefits from it. It is a
financial incentive provided to an employee for rendering service and his devotion to the
company.

 What are the new gratuity rules for private sector employees?
 What can employees do if gratuity is not paid?
 How gratuity can be calculated?

The formula to calculate gratuity is Gratuity = (15 × last drawn salary × working
tenure)/30

 Who can be eligible to receive gratuity in India?

Salary Breakup

Office Timing

Attendance Policy

Leave Policy

Probation Period

Attendance Policy

Overtime

Professional Tax

PF

ESI

Gratuity

Job Description

Dress Code

Termination