Relaxing clauses of the Payment Gratuity Act could help draw in more workers, especially those in the unorganized sector, under its ambit. Explain (200 Words)
Refer - The Indian Express
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IAS Parliament 4 years
KEY POINTS
Relevant clauses
· The PG Act regulates the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops, or other establishments.
· The Act applies only to organisations that employ 10 or more employees. Second, the organisation has to fall under the definition of “establishment” under the PG Act. The laws in respective states define whether an organisation or institution falls under the definition of “establishment” and, unsurprisingly, the state laws differ in their definition.
· To get payment of gratuity, an employee has to work for at least five years continuously under the same employer or be separated due to death or disablement.
· PG Act, the employees have to work for at least 240 days per year for five years continuously to be eligible for gratuity payment in most industries. Thus, if an employee has to return to her village for attending to some personal misfortune, she can be denied gratuity payment if she cannot meet the prescribed annual quota of 240 days.
· The above points make it amply clear that for the unorganised sector workers, it is almost impossible to receive any gratuity and for most organised workers working as contract labourers, ticking all the boxes under the PG Act is easier said than done.
Measures
· Under the deferred gratification option, the conditions would be the same as prescribed under the PG Act currently the employees would have to work for at least five years continuously under an employer and they would receive gratuity payment at the rate of 15 days’ salary for every year of continuous service.
· The immediate gratification option, on the other hand, would help employees who are forced to work on short-term contracts with durations of less than five years. This option would involve paying the gratuity amount to the employees along with their monthly salaries.
· To increase the coverage of the PG Act, our legislators can mandate that any person receiving a salary be entitled to gratuity under the Act. The condition of 10 or more employees in an organisation should be removed and the definitions of “employees” and “establishments” should be made more exhaustive and inclusive.
· Such simplification would also help in reducing the burden of the labour authorities and the courts of our country who have to adjudicate claim cases and associated appeal petitions under the PG Act.
K. V. A 4 years
Pls review
IAS Parliament 4 years
Good attempt. Keep Writing.
