Saturday, March 31, 2018
Decision:The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March, 2018 and by the Rajya Sabha on 22nd March, 2018, has been brought in force on 29th March, 2018.
Background: The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation, or physical disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments.
2. The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised toRs. 20 Lakhs.
3. Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, this Government decided that the entitlement of gratuity should also be revised in respect of employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972 to increase the maximum limit of gratuity to such amount as may be notified by the Central Government from time to time. Now, the Government has issued the notification specifying the maximum limit to Rs. 20 Lakh.
4. In addition, the Bill also envisages to amend the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from ‘twelve weeks’ to ‘such period as may be notified by the Central Government from time to time’. This period has also been notified as twenty six weeks.
Major Impact: The Bill as passed by both the Houses of Parliament, andassented to by the Hon’ble President and notified by the Government. This will ensure harmony amongst employees in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector.
Minutes of the Committee on Compassionate Engagement(CCE) for considering the compassionate Engagement of dependents of GDS-Andhra Pradesh Circle.
The following applicants selected in Gudur Division :
P.Pavan Kumar, GDSMC/MD, Degapudi BO, Kalichedu SO
P.Haribabu, GDSMC/MD, Kalluru BO, Kotapolur SO
Gudur NFPE conveys congratulations to the selected GDS officials.
Wednesday, March 28, 2018
The Government of India has recently made three changes in the National Pension Scheme (NPS) including withdrawal norms. The details are as under:
- Partial withdrawal during the service: The Pension Fund Regulatory and Development Authority (PFRDA), with an objective to meet the subscriber’s sudden financial requirement enrolled under NPS, has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations, 2017 and the same has been notified on 10.08.2017.
- Increase in the joining age under NPS: With an objective to allow individuals (under NPS-All Citizen Model and Corporate Sector Model) who are in the age bracket between 60 years and 65 years to join NPS system. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2017 and the same has been notified on 06.10.2017.
- Exit in case of disability and incapacitation of the subscriber: With an objective of facilitating easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS, PFRDA has made suitable amendments through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018 and the same has been notified on 02.02.2018.
This was stated by Shri Ship Pratap Shukla, Minister of State for Finance in a written reply to a question in Lok Sabha today.
This is in continuation of my earlier e-mail sent on 19.03.2018 on the captioned subject. The whole matter has again been reviewed and now it has been decided to conduct POSB business in Finacle on 31st March, 2018 up to 5 P.M. for the convenience of the customers / depositors.
In view of above, 31st March, 2018 will be a full transaction day, with extended counter hours up to 5 P.M. The 2nd April, 2018 will be a NO TRANSACTION DAY for smooth completion of End of Year (EOY) activities.
Accordingly, it is requested to replace the existing public notices with the following -
"BUSINESS IN POSB SCHEMES WILL BE ACCEPTED ON 31st MARCH, 2018 UP TO 5 P.M. The 2nd APRIL, 2018 WILL BE A NO BUSINESS DAY DUE TO COMPLETION OF END OF YEAR ACTIVITIES."
Necessary action in this regard may be taken accordingly.
This issues with the approval of Competent Authority.
Monday, March 19, 2018
7th CPC Minimum Pay and Fitment Factor: Confederation writes to NJCA
CONFEDERATION WRITES TO NJCA LEADERS
Dated – 14.03.2018
1. Shri M. Raghavaiyya
National Joint Council of Action of JCM (NC) Staff Side organisations (NJCA) & General Secretary
National Federation of Indian Railwaymen
Leader Staff side NC (JCM)
3, Chelmsford Road, New Delhi – 110055
2. Shri Shiv Gopal Misra
Convenor, NJCA & General Secretary
All India Railwaymen’s Federation (AIRF) & Secretary, Staff side,
National Council (Staff Side) JCM
13- C, Ferozeshah Road, New Delhi – 110001
As you may be aware the Govt. of India, Ministry of Finance, has given the following written reply in Parliament for a question asked to Minister of Finance, regarding our demand – “Increase in Minimum Pay and Fitment Formula”.
Reply given by Minister of state for Finance:
“The minimum pay of Rs.18000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration”.
From the above it is crystal clear that Govt. has gone back from the assurance given on 30.06.2016 by Group of Ministers including Sri Rajnath Singh, Home Minister, Shri Arun Jaitley, Finance Minister and Shri Suresh Prabhan, then Railway Minister, that Minimum Pay and Fitment formula will be increased and for that purpose a High Level Committee will be appointed to submit report within four months.
Now that Govt. has gone back from its assurance, I on behalf of Confederation of Central Govt. Employees & Workers, which is a constituent organisation of NJCA, request you revive our deferred agitational programmes immediately and for that purpose, if necessary, an urgent meeting of the NJCA may be convened.
INDEFINITE STRIKE IN MAY 2018 BY AIPEU-GDS
The 3rd All India Conference of AIPEU-GDS held in Allahabad (UP) from 16th to 17th March 2018 unanimously decided to go on indefinite strike during the month of May 2018.
1. Implement all the positive recommendations of Kamalesh Chandra Committee Report immediately.
2. Complete the process of Membership Verification of GDS immediately.
Start campaign and preparations for the indefinite strike now itself.
Make all the programmes a grand success
Tuesday, March 13, 2018
CLICK HERE FOR DETAILED COPY OF THE LETTER
Thursday, March 8, 2018
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensionersw.e.f. 01.01.2018 representing an increase of 2% over the existing rate of 5% of the Basic Pay/Pension, to compensate for price rise.
This will benefit about 48.41 lakh Central Government employees and 61.17 lakh pensioners.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.6077.72 crore per annum and Rs.7090.68 crore in the financial year 2018-19 (for a period of 14 months from January, 2018 to February, 2019).
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7thCentral Pay Commission.
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Arbitration and Conciliation (Amendment) Bill, 2018 for introduction in the Parliament. It is a part of the efforts of the Government to encourage institutional arbitration for settlement of disputes and make India a centre of robust Alternative Dispute Resolution (ADR) mechanism.
The Amendments in the Act of 1996 will facilitate achieving the goal of improving institutional arbitration by establishing an independent body to lay down standards, make arbitration process more party friendly, cost effective and ensure timely disposal of arbitration cases.
- To facilitate speedy appointment of arbitrators through designated arbitral institutions by the Supreme Court or the High Court, without having any requirement to approach the court in this regard. It is envisaged that parties may directly approach arbitral institutions designated by the Supreme Court for International Commercial arbitration and in other cases the concerned High Courts.
- The amendment provides for creation of an independent body namely the Arbitration Council of India (ACI) which will grade arbitral institution and accredit arbitrators by laying down norms and take all such steps as may be necessary to promote and encourage arbitration, conciliation, mediation and other ADR Mechanism and for that purpose evolve policy and guidelines for the establishment., operation and maintenance of uniform professional standards in respect of all matters relating to arbitration and ADR mechanism. The Council shall also maintain an electronic depository of all arbitral awards,
- The ACI shall be a body corporate. The Chairperson of ACI shall be a person who has been a Judge of the Supreme Court or Chief Justice or Judge of any High Court or any eminent person. Further, the other Members would include an eminent academician etc. besides other Government nominees,
- It is proposed to amend sub section (1) of section 29A by excluding International Arbitration from the bounds of timeline and further to provide that the time limit for arbitral award in other arbitrations shall be within 12 months from the completion of the pleadings of the parties.
- A new section 42A is proposed to be inserted to provide that the arbitrator and the arbitral institutions shall keep confidentiality of all arbitral proceedings except award. Further, a new section 42B protects an Arbitrator from suit or other legal proceedings for any action or omission done in good faith in the course of arbitration proceedings.
- A new section 87 is proposed to be inserted to clarify that unless parties agree otherwise the Amendment Act 2015 shall not apply to (a) Arbitral proceedings .which have commenced before the commencement of the Amendment Act of 2015 (b) Court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Amendment Act of 2015 and shall apply only to Arbitral proceedings commenced on or after the commencement of the Amendment Act of 2015 and to court proceedings arising out of or in relation to such Arbitral proceedings.
The Arbitration and Conciliation Act, 1996, was amended by the Arbitration and Conciliation (Amendment) Act, 2015 in order to make arbitration process user friendly, cost effective and ensure speedy disposal and neutrality of arbitrators. However, to give a boost to institutional, arbitration vis-a-vis ad hoc arbitration and to remove some practical difficulties in applicability of the Arbitration and Conciliation (Amendment) Act, 2015, a High Level Committee (HLC) under the Chairmanship of Justice B. H. Srikrishna, Retired Judge, Supreme Court of India, was constituted by the Central Government, The HLC was given the mandate
- to examine the effectiveness of existing arbitration mechanism by studying the functioning and performance of Arbitral Institutions in India;
- to devise a road map to promote institutionalized arbitration mechanisms in India;
- to evolve an effective and efficient arbitration eco-system for commercial dispute resolution and submit a Report on suggested reforms in the statute.
The HLC submitted its Report on 30th July, 2017 and has recommended for amendments in the Arbitration and Conciliation Act, 1996. The proposed amendments are as per the recommendations of the High Level Committee.
The Department of Expenditure in its consolidated compendium of instructions/ guidelines dated 12.04.2017 directed all the Ministries/Departments to abolish all the posts which are lying vacant for more than five years and submit a report. At the same time, Department of Expenditure has also decided that now vacant posts would fall under deemed abolished category after a period of two/three years against earlier norm of one year subject to laid down conditions. Deemed abolished posts can be got revived from Department of Expenditure subject to fulfilling of stipulated conditions.
This was stated by the Union Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh in written reply to a question in the Lok Sabha today.