Page 313 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes 2. An employee ceases to be the member of the provident fund at the age of 60 years.
3. At present the rate of interest on provident fund is 12%.
4. Profit-earning capability of the firm is one of the guiding principles for framing the
gratuity scheme.
5. The gratuity of a person can be forfeited if his employment is terminated due to his bad
health.

Fill in the blanks:
6. When an employee attains a particular age as stated in the contract after which he is
entitled to leave the services is called…………………………..

7. After a period of …….. Years a person is usually eligible for the gratuity payment.
8. ………………….. is the award given by the corporates to their employees for the loyalty
& services rendered by them for a long period.

9. When an employee is terminated from the services on the account of his age & not on the
basis of the misconduct is ………………………………
10. ……………….. offers a fixed sum when an employee reaches a predetermined retirement
age.
11. …………% of the wage is the contribution of the employer towards the deposit linked
insurance fund.

13.12 Review Questions

1. "The principles which are incorporated in the Payment of the Gratuity Act is conducive to
the industrial harmony & is in consonance with public policy." Comment.
2. You are working in an organisation & every month your company deducts a part of PF
from your salary. It's been 3years that you are working with the same organisation. Now
you want to withdraw your PF. Examine the conditions you are required to meet before
withdrawing the PF.
3. Mr. Devi is working in ABC corporation for last 4.5yrs as a senior administration officer
but during the argument with the management today, he misbehaved & using abusive
language at the workplace. Do you think in this case he will suffer from the forfeiture of
the gratuity? Justify.
4. You are the owner of ABC estates Pvt. Ltd. You had 300 employees under your supervision.
Analyse your duties & obligations towards the pension & gratuity benefits of the employees
in your company.
5. Mr. Graham was working with a reputed MNC but due to certain circumstances he was
absconding from his services after informing his supervisor who rejected to release him
without serving the notice period. Do you think he is entitled to receive his provident
fund from the company? Justify.

6. Critically analyse the paradigm shift that has occurred in the employee's provident funds
& miscellaneous provisions Act.
7. You are the employee of the XYZ Pvt. Ltd. for last 5 yrs. You are entitled to receive gratuity
from the company. Discuss your rights & obligations in this regard.
8. Do you think the main objective of the Provident fund Act is met in current scenario?
Justify giving examples.

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