gratuity trust rules
TRANSCRIPT
TATA COMMUNICATIONS GRATUITY RULES
1
SCHEDULE - A
TATA COMMUNICATIONS EMPLOYEES' GRATUITY FUND.
RULES AND REGULATIONS
1. DEFINITIONS :-
In these Rules and Regulations unless there is anything repugnant to the subject or
context :
(a) "Board of Trustees" means the Board consisting of all Trustees of the Fund.
(b) "Beneficiary" means an employee entitled to gratuity in accordance with the
provisions of these Rules.
(c) "Commissioner" means Commissioner of Income Tax.
(d) "Employee" means any person in full time regular employment of the
Company who is employed for wages in any kind of work, manual or
otherwise including Chief Executive and full time Functional Directors and
ex-servicemen but shall exclude the following :-
(i) Casual and non-regular employees.
(ii) Government servants and others employed on deputation terms.
(iii) Employees on contract basis.
(iv) Apprentices and trainees.
(v) Re-employed persons.
(e) “Employer” means the Chief Executive Officer of TATA Communications
Limited, or any other officer so appointed or nominated by him in this
behalf.
(f) "The Board of Directors" means the Board of Directors for the time being of
TATA Communications Limited and shall include any Committee or Director of
the Board of Directors to which the Board of Directors has delegated or may
delegate its powers in this respect.
(g) "The Company" means TATA Communications Limited.
(h) "The Fund" means TATA Communications Employees' Gratuity Fund Trust.
(i) "Rules" means the Rules and Regulations of the Gratuity Fund as contained in
this Schedule.
(j) "Secretary" means the Secretary of the Board of Trustees.
TATA COMMUNICATIONS GRATUITY RULES
2
(k) "Trustees" means the Trustees of the Fund and "Trust" means the irrevocable
Trust under which the Fund is established.
(l) "Salary" means gross monthly salary including dearness allowance, if any,
paid to an employee but shall exclude the amount of bonus and any other
allowance or perquisite or overtime or commission that may have been
allowed to the employee as a reward for his service either under an
agreement with the company or otherwise.
(m) Words in the singular number shall include the plural and words in the masculine
gender shall include the feminine.
(n) All other words and expressions not defined herein above shall have the meaning
respectively assigned to them in the Payment of Gratuity Act,1972 and the
Income Tax Rules to the Income Tax Act, 1961.
IRREVOCABILITY OF THE FUND AND PURPOSE OF THE FUND
2. The Fund shall be vested in the Board of Trustees under an irrevocable Trust having for
its sole purpose the provision of gratuity to the employees of the Company as provided in
these Rules.
3. The object of the Fund is to provide moneys for payment of gratuity in India to the
employees of the Company in accordance with the provisions of these Rules.
4. The company shall be the contributor to the Fund.
5. TRUSTEES
There shall be minimum four trustees and maximum seven trustees on the Board of
Trustees of the Fund. The Trustees of the Fund shall be appointed by the Company shall
be resident in India and any Trustee who leaves India permanently shall vacate his office.
6. TERMS OF OFFICE
6.1. The term of Office of the Trustees shall be three years commencing from the
date of their nomination to the Fund. Provided that any such Trustee shall
notwithstanding the expiry of the said period of three years continue to be the
trustee of the Fund, unless a successor is nominated.
6.2. An outgoing trustee shall be eligible for re-nomination.
TATA COMMUNICATIONS GRATUITY RULES
3
7. FILLING UP OF VACANCY IN THE OFFICE OF TRUSTEES.
A Trustee shall cease to hold office with immediate effect.
(a) On his death; or
(b) On his resignation duly accepted by the Board of Trustees or
(c) On his becoming insolvent, insane or incapacitated; or
(d) If he is convicted of an offence involving moral turpitude; or
(e) If he permanently leaves India; or
(f) On his ceasing to be a Director if he is a Director of the Company; or
(g) On his ceasing to be an employee if he is an employee of the Company, and
8. The Company shall nominate a successor in the place of such a Trustee who has ceased to
be a Trustee in any manner aforesaid.
9. ELIGIBILITY AND SCALES OF GRATUITY
9.1. (i) "Gratuity shall be payable for good, efficient and faithful service to full
time employees in the following circumstances :-
(a) Discharge on abolition of post.
(b) Permanent incapacity due to bodily or mental infirmity.
(c) on death or disablement due to accident or disease
(d) Superannuation.
(e) Resignation/Retirement after five years qualifying service.
Provided that
(i) Gratuity shall not be admissible to an employee who resigns from service
before completing five years of service (voluntary retirement under duly
approved scheme would not constitute resignation).
(ii) Except in the case of death or disablement, gratuity will be admissible
only after five years qualifying service.
TATA COMMUNICATIONS GRATUITY RULES
4
Provided further that in the case of death of the employee, gratuity
payable to him shall be paid to his nominee or, if no nomination has
been made, to his heirs.
Explanation:- For the purpose of this clause, disablement means such
disablement as incapacitates an employee for the work which
he was capable of performing before the accident or disease
resulting in such disablement.
Explanation:- In the case of monthly rated employee, the fifteen days’ wages
shall be calculated by dividing the monthly rate of wages last
drawn by him by twenty-six and multiplying the quotient by
fifteen.
(ii) Nothing in this clause shall affect the right of an employee to receive
better terms of gratuity under any award or agreement or contract with
the employer.
9.2. (i) In respect of employees governed by the payment of the Gratuity Act,
1972, the amount of Gratuity shall be equal to 15 days salary last drawn
by the employee concerned for each completed year of qualifying service
or part thereof in excess of six months subject to a maximum of
Rs.3,50,000/- (Rupees three lakhs fifty thousand).
(ii) In respect of the employees not coming under the purview of the Payment
of the Gratuity Act,1972 the amount of Gratuity shall be equal to 15 days'
salary last drawn by the employee concerned for each completed year of
qualifying service or part thereof in excess of six months subject to a
maximum of 16.1/2 months emoluments or Rs.3,50,000/- (Rupees three
lakhs fifty thousand) whichever is less.
(iii) In case an employee dies in harness the amount of gratuity payable to him
shall be calculated either under above or in the manner shown below
whichever is more beneficial.
(a) Death during the first Two months’ salary.
year of service.
(b) Death after one year Six months' salary.
but before five years'
service.
(c) Death after completion Twelve months salary.
of five years' service
but before twenty years'
service.
TATA COMMUNICATIONS GRATUITY RULES
5
(d) Death after completion Half-a-month's salary
of qualifying service of for each completed half
twenty years and more year of qualifying service subject
to a maximum of 33 times the
emoluments provided the amount
of Death Gratuity shall in no case
exceed Rs.3.50 lakhs.
Note (1) 15 days salary will be computed in the following manner :
15 days salary = Monthly emoluments x 15
26
(2) For the purpose of computing the gratuity payable to an employee who is
employed after his disablement on reduced salary, his emoluments for the
period preceding his disablement shall be taken to be the salary received
by him during that period and his salary for the period subsequent to his
disablement shall be taken to be salary as so reduced.
(3) "Qualifying service” for purpose of computing gratuity shall mean all
service rendered in the Company after completion of 18 years of age but
excluding interruptions caused due to extra-ordinary leave (that is leave
without salary) availed of other than on medical grounds, and
unauthorised absence treated as dies-non and specifically declared as not
computable for qualifying service.
9.3. NOTWITHSTANDING ANYTHING CONTAINED IN THE PRECEDING
CLAUSE
(a) The gratuity of an employee, whose service have been terminated for any act,
willful omission or negligence causing any damage or loss to or destruction of
property belonging to the Company shall be forfeited to the extent of the damage
or loss so caused;
(b) The gratuity payable to an employee may be wholly or partially forfeited,
(i) if the services of such employee have been terminated for his riotous or
disorderly conduct or any other act of violence on his part; or
(ii) if services of such employee have been terminated for any act which
constitutes an offence involving moral turpitude provided that such
offence is committed by him in the course of his employment.
TATA COMMUNICATIONS GRATUITY RULES
6
10. COMPUTATION OF GRATUITY IN RESPECT OF CENTRAL GOVERNMENT
EMPLOYEES OPTING FOR ABSORPTION IN VSNL AND TRANSFER OF
GRATUITY IN THE CASE OF EMPLOYEES WHO MOVE FROM ONE
PUBLIC ENTERPRISE TO OTHER WITH THE CONSENT OF THE
RESPECTIVE MANAGEMENTS
10.1. When an employee leaves or resigns from the Company's service to take up
employment in Central Government/State Government or any Public Sector
Enterprise with the consent of both the Organisations, an amount towards gratuity
earned by the employee for the service rendered by him in TATA
Communications Limited computed on the basis of the emoluments last drawn
will be paid to the gratuity trust of the transferee enterprise provided the gratuity
Rules of the said trust also provide for accepting the amount of gratuity so
transferred. In such cases, restriction of five years qualifying service as provided
in Rule 9 for entitlement of gratuity will not apply. Service of less than six
months will, however be ignored and in such cases the facility of transfer of
gratuity will not apply.
10.2. Before the gratuity of an ex-employee is transferred by TATA Communications
Employees’ Gratuity Fund Trust to the new employer, an undertaking shall be
obtained from the new employer to the effect that in the event of the concerned
employee leaving their service before he becomes eligible for payment of gratuity
under their rules and joins a private organisation or some other establishment not
covered by the provisions for carry forward of Gratuity, the amount of gratuity
transferred by TATA Communications Limited shall be refunded to the TATA
Communications Employees’ Gratuity Fund Trust. In case the employee is
transferred back to TATA Communications Limited the gratuity shall be refunded
to the Communications Employees’ Gratuity Fund Trust by the transferor
organisation.
10.3. In the case of employees joining TATA Communications Limited after leaving or
resignation from other Public Sector Undertakings with the consent of both the
organisations, the payment of gratuity if made by the gratuity trust of the
transferor organisation under their gratuity trust rules will be accepted by the
TATA Communications Employees’ Gratuity Fund Trust and, in lieu thereof,
their past qualifying service in the previous organisation will count as qualifying
service for the purpose of payment of gratuity under TATA Communications
Employees’ Gratuity Fund Trust Rules.
10.4. In the case of a Central Government Employee who opts for absorption in the
Company, the total gratuity admissible in respect of the service rendered under
the Central Government and that under the Company shall not exceed the amount
that would have been admissible had the Government servant continued in
Government service and retired on the same pay which he drew on retirement
TATA COMMUNICATIONS GRATUITY RULES
7
from the Company.
11. INCOME TAX/DUTY ETC. PAYABLE BY THE EMPLOYEE.
Income tax, super tax and any other tax/duty, if any, payable on the amount of gratuity
shall not be borne by the Fund but shall be deducted from out of the gratuity amount,
payable to an employee in accordance with law.
11.1 Trustees to remain liable to payment of Income-tax.
If for any reason, the fund ceases to be an approved fund according to or under the
Income-tax Rules, in such eventuality, the Trustees of the fund shall nevertheless
remain liable to income-tax payment on any amount of Gratuity paid to an
employee. However, the company may in appropriate cases indemnify the Trustees
to the extent of monetary losses suffered by them due to such Income-tax payments.
12. POWER OF TRUSTEES.
12.1 The Rules shall be interpreted by the Board of Trustees whose decision shall be
final and binding upon the employees of the Company.
12.2 The Board of Trustees shall administer the Fund and income thereof except as
otherwise provided in the Rules for the time being in force.
12.3 The Board of Trustees shall invest the moneys of the Fund which are not required
for the purpose of the Trust in accordance with the provisions of the Income Tax
Act, 1961, and the Rules made thereunder including the amendments.
13. DECLARATION OF TRUSTEES' POWERS
The Board of Trustees may from time to time appoint any officer in the Accounts
Department to be the Secretary of the Fund to sign all correspondence on behalf of the
Fund and exercise all powers and authorities as may be conferred on him by the Board of
Trustees.
14. POWER OF BOARD OF TRUSTEES FOR SALE AND HYPOTHECATION
ETC. OF THE INVESTMENTS.
The Board of Trustees may from time to time, as and when necessary, raise such sum or
sums as may be required for the purpose of the Fund by sale, hypothecation or pledge of
the investments held by them or of a sufficient part thereof.
15. RECEIPT FOR MONEYS RECEIVED BY THE BOARD OF TRUSTEES
TATA COMMUNICATIONS GRATUITY RULES
8
Receipt for moneys received by the Board of Trustees and endorsement on cheques,
drafts and other documents, received by the Board of Trustees shall be made by the
Secretary for and on behalf of the Board of Trustees.
16. MEETINGS
16.1 The Board of Trustees shall meet as often as may be necessary and at such places
and time as may be appointed for the despatch of business of the Fund.
16.2 The Secretary may whenever he thinks fit, and shall, within fifteen days of the
receipt of a requisition in writing from not less than two members of the Board
of Trustees, call a meeting thereof.
17. NOTICE OF MEETING AND LIST OF BUSINESS
For every meeting, notice of not less than seven days containing the date, time and place
together with a list of business to be conducted at the meeting shall be sent to each
Trustee; Provided that when the Secretary, with the approval of the Chairman calls a
meeting for considering any matter which in his opinion is urgent a notice giving such
reasonable time as he may consider necessary, shall be deemed sufficient.
18. CHAIRMAN TO PRESIDE AT MEETINGS
Director (Finance) will be the ex-officio Chairman of the Fund. Any change in the office
of the Chairman will be made by the Company.
19. The Chairman shall preside at every meeting of the Board of Trustees at which he is
present. If the Chairman is absent at any time, the Trustees present shall elect one of
them to preside over the meeting and the Trustees so elected shall exercise all the powers
of the Chairman at the meeting.
20. QUORUM
20.1 Two members including the Chairman of the Board of Trustees shall constitute
the quorum at any meeting of the Board of Trustees.
20.2 If at any meeting the number of Trustees is less than the required quorum, the
meeting will stand adjourned to the same day in the next week at the same time
and place and if at such adjourned meeting a quorum is not present, those
trustees who are present shall form the quorum and transact the business for
which the meeting was called.
21. DISPOSAL OF BUSINESS
21.1 Each Trustee including the Chairman shall have one vote.
TATA COMMUNICATIONS GRATUITY RULES
9
21.2 Every question considered at a meeting of the Board of Trustees shall be decided
by a majority of the votes of the Trustees present and voting. In the event of an
equality of votes, the Chairman shall have a casting vote.
21.3 Any resolution, except as may be placed before the meeting of the Board of
Trustees may be adopted by circulation among all the Trustees and any resolution
so circulated and adopted by a majority of the Trustees who have signed their
approval, shall be as effective and binding as if such resolution had been adopted
at the meeting of the Board of Trustees. However, such circulatory resolution
shall be put up in the next meeting of the Board of Trustees for confirmation.
22. MINUTES OF MEETING
22.1 The Secretary shall maintain the records of the minutes of meetings of the Board
of Trustees.
22.2 The records of minutes of each meeting shall be signed by the Chairman after
confirmation with such modifications, if any as may be considered necessary at
the next meeting.
22.3 The Secretary shall take necessary steps for carrying out the decisions of the
Board of Trustees.
23. The Board of Trustees shall function notwithstanding any vacancy therein and
notwithstanding any defect in the nomination of any of its Trustees or constitution of the
Board of Trustees and no act or proceeding of the Board of Trustees shall be called in
question merely by reasons of the existence of any vacancy therein or any defect in the
nomination of any Trustees or constitution of the Board of Trustees.
24. COST OF ADMINISTERING THE FUND
All expenses relating to the administration of the Gratuity Fund/Trust, of whatever
nature, shall be borne by the Company.
25. DELEGATION OF POWERS, DUTIES ETC. BY THE BOARD OF TRUSTEES
The Board of Trustees may delegate any of their duties, powers rights and discretions to
one or more of themselves as they may from time to time think fit and they may vary
alter, withdraw, modify or cancel such delegations as they, from, time to time, thinks fit.
26. BANK ACCOUNT OF THE FUND
All contributions of the Company shall be deposited by the Board of Trustees every year
into a Bank Account especially created for that purpose and at convenient intervals and as
soon as possible the Board of Trustees shall invest these funds as provided hereinbefore.
All interest accruing on the funds either through Bank or securities or Investments will
TATA COMMUNICATIONS GRATUITY RULES
10
after making any related expenses be caused to be credited by the Board of Trustees at
convenient intervals not less than once every year to the account of the Fund. The said
Bank Account shall be operated upon jointly by two trustees or by one of the trustees and
the Secretary to be nominated by the Board of Trustees.
27. LIABILITY OF THE TRUSTEES
No Trustee shall be responsible for chargeable save and except for moneys actually
received by him and shall be responsible or chargeable for the acts, defaults or neglects of
the Bank with whom the moneys of the Fund are deposited or for any loss, unless the
same happens through his own willful act or omission. All expenses incurred in respect
of, and loss, if any, arising from any investment shall be charged to the Fund.
28. ADMISSION OF DIRECTORS TO THE FUND
The Chairman and the Managing Director and other functional Directors of the Company
shall be admitted to the benefit of the Fund only if they are whole-time bonafide
employees of the Company and do not beneficially own shares in the Company carrying
more than five percent of the total voting powers.
29. ASSIGNMENT OF AND CREATING CHARGES
No employee shall assign or create a charge upon his beneficial interest in the Fund.
30. ACCOUNT AND AUDIT.
(i) The Secretary shall cause the accounts of the Fund to be maintained in such a
manner as the Board of Trustees, may from time to time, decide.
(ii) At the end of each financial year an Income and Expenditure Account together
with a Balance Sheet of the Funds' Assets and liabilities shall be laid before the
Board of Trustees at meeting to be held within nine months of the close of the
financial year.
(iii) Every year the Board of Directors of the Company shall appoint a Chartered
Accountant or a firm of Chartered Accountants as auditor for audit of the Fund
accounts and fix the remuneration which shall be borne by the Company.
(iv) A copy of the said audited accounts shall be furnished to the Company and such
other authorities as may be necessary.
31. ARRANGEMENT OF WINDING UP OF THE COMPANY'S BUSINESS
The winding up of a company may be either (i) by the court or (ii) voluntary or (iii)
subject to supervision of the court. Where the Company's business is to be wound
up or discontinued in accordance with the provisions of The Companies Act, 1956,
TATA COMMUNICATIONS GRATUITY RULES
11
the Board of Trustees shall make satisfactory arrangements for the payment of gratuity to
the existing beneficiaries.
32. ARRANGEMENT OF WINDING UP OF THE FUND
Any arrangement for the winding up of the fund or for its amalgamation with
another fund shall be only in following cases:-
(1) Reconstruction:- Where a voluntary winding up is followed by an actual,
complete, legal sale of all the rights of the company; and
(2) Reconstitution or amalgamation of the company with any other firm.
33. NOMINATION
33.1 Every employee at the time of entry in service on regular basis shall make a
nomination in form ̀ B' conferring on one or more persons of his family the right to
receive the Gratuity in the event of his death while in service, or after quitting
service but, before Gratuity is received by him, indicating the shares payable to
each nominee.
33.2 An employee may in his nomination distribute the amount of gratuity payable to
him amongst more than one nominee.
33.3 If an employee has a family at the time of making a nomination, the nomination
shall be made in favour of one or more members of his family, and any nomination
made by such employee in favour of a person who is not a member of his family
shall be void.
33.4 If at the time of making a nomination the employee has no family, the nomination
may be made in favour of any person or persons but if the employee subsequently
acquires a family, such nomination shall forthwith become invalid and the
employee shall make a fresh nomination in favour of one or more members of his
family in Form C.
33.5 A nomination may subject to Sub-Clauses (33.3) and (33.4) be modified by an
employee at any time, after giving to the Secretary a written notice in Form D of
his intention to do so.
33.6 If a nominee predeceases the employee, the interest of the nominee shall revert to
the employee who shall make a fresh nomination in respect of such interest.
33.7 Every nomination, fresh nomination or modification of nomination as the case may
be, shall be sent by the employee to the Secretary, who shall keep the same in safe
custody.
TATA COMMUNICATIONS GRATUITY RULES
12
33.8 A nomination, fresh nomination or its modification, shall take effect to the extent it
is valid on the date on which it is received by the Secretary.
33.9 In the event of there being no nomination, the gratuity on death shall be paid in the
manner indicated below.
(a) If there are one or more surviving members of the family as in (i) to (iv)
below, it may be paid to all such members other than any such member
who is a widowed daughter, in equal shares.
(b) If there are no such surviving members of the family, but there are one or
more surviving widowed daughters and or one or more surviving members
of the family as in (v) to (ix) below, the gratuity may be paid to all such
members in equal shares.
Family for the purpose of this Rule shall include the following :-
(i) Wife in the case of a male employee.
(ii) Husband in the case of female employee.
(iii) Sons ] including step
] Children and
(iv) Unmarried and widowed daughters] adopted Children.
(iv) Brothers below the age of 18 years ]including step
and unmarried and widowed sisters ]brothers and step sisters.
(vi) Father
(vii) Mother
(viii) Married daughters
(ix) Children of a pre-deceased son.
Explanation
For the purpose of this clause, Family in relation to an employee shall be deemed to consist of :
(i) In the case of a male employee, himself, his wife, his children, whether married or
unmarried, his dependent parents and the widow and children of his predeceased son, if
any.
(ii) In the case of a female employee, herself, her husband, her children whether married or
unmarried her dependent parents and the dependent parents of her husband and the widow
TATA COMMUNICATIONS GRATUITY RULES
13
and children of her predeceased son, if any; provided that if a female employee, by a
notice in writing to the Secretary, expresses her desire to exclude her husband from her
family, the husband and his dependent parents shall no longer be deemed to be included in
the family of such female employee.
Explanation II
Where the personal law of an employee permits the adoption by him of a child any child lawfully
adopted by him shall be deemed to be included in his family, and where a child of an employee
has been adopted by another person and such adoption is under the personal law of the person
making such adoption lawful, such child shall be deemed to be excluded from the family of the
employee.
34. PAYMENT OF GRATUITY.
34.1. An employee who is eligible for payment of gratuity or any person, authorised in
writing to act on his behalf shall apply in form E to the Secretary within thirty days
from the date the gratuity becomes payable.
34.2. Provided that where the date of superannuation or retirement of an employee is
known, the employee may apply to the Secretary before thirty days of the date of
superannuation or retirement.
34.3. A nominee of an employee who is eligible for payment of gratuity under Rule 9 of
the Rules shall apply in Form F to the Secretary within thirty days from the date the
gratuity becomes payable to him.
Provided that an application on plain paper with relevant particulars shall also be
accepted. The Secretary may obtain such other particulars as may be deemed
necessary by him.
34.4. A legal heir of an employee who is eligible for payment of gratuity under Rule 9 of
the Rules shall apply in Form G to the Secretary within one year from the date the
gratuity becomes payable to him. Where gratuity becomes payable before the
commencement of this Rule, the periods of limitation specified hereinabove shall
be deemed to be operative from the date of such commencement.
35. While forwarding belated gratuity payment claims for authorisation, the following
certificate should be recorded by the concerned Branches/Office to avoid any delay :
"Certified that Shri ..................................................................
................................................. (designation and office)
Shri ............................................................. (Nominee/legal heir of Shri
............................................................. (ex.................... designation) has submitted
to his Branch/Office application for payment of Gratuity. Delay in submitting the
claim is on account of ........................ ........................ (reasons given by the
applicant to be indicated here)."
TATA COMMUNICATIONS GRATUITY RULES
14
Certified that except this claim no previous claim for gratuity has been forwarded to the Secretary,
VSNL Employees Gratuity Fund and that no authorisation for payment of gratuity has been applied
to or obtained from the Gratuity Fund till date in this case. Also certified that submission of this
case has the prior approval of the General Manager/Head of the Branch.
36. MODE OF PAYMENT OF GRATUITY
The gratuity payable shall be paid in cash or by crossed cheque or demand draft to
the eligible employee, nominee or legal heir, as the case may be in lump sum.
Provided that in case the eligible employee, nominee or legal heir, as the case may be,
so desires, and the amount of gratuity payable is less than one thousand rupees,
payment may be made by postal money order after deducting the postal money order
commission thereof from the amount payable.
37. A register shall be kept by the Secretary in which shall be entered the names and addresses
of persons who received gratuity out of the Fund together with the amount paid to each of
them.
38. Every employee when joining the Fund shall subscribe an Agreement as in Form A.
39. AMENDMENTS OF RULES
No alteration in the Rules, constitution, objects or conditions of the Fund shall be made
without the prior approval of the Commissioner.
40. If there is any repugnance between the Rules of the Fund and any provision of the Income
Tax Act,1961 and the Rules made thereunder, or any other law for the time being in force,
Rules to the extent of such repugnancy shall be ineffective.
41. DATE OF EFFECT
The fund shall be deemed to have taken effect from the first day of March 1988, and the
provisions of these Rules shall apply to all eligible employees of the Company from
1st April,1986.
42. ACTURIAL RENEWAL DATE
The Actuarial Renewal Date shall be 31st of March every year.
43. INITIAL CONTRIBUTIONS
The initial contributions to be made by the Company to the Fund shall be the accumulated
gratuity liability of the Company as on March 31,1987 in respect of past services of the
employees admitted to the benefits of the Fund. This liability so evaluated by a qualified
actuary who shall certify that the liability so evaluated shall not exceed the limit prescribed
in Rule 104 of the Income-Tax Rules,1962 viz., 8-1/3 percent of the employees'
emoluments for each year of his past service with the Company.
TATA COMMUNICATIONS GRATUITY RULES
15
44. ORDINARY ANNUAL CONTRIBUTION
The ordinary annual contribution shall be an amount of gratuity liability in respect of
employees for the year determined by a qualified actuary who shall certify that the amount
determined by him shall not exceed the limits specified under Rule 103 of the Income-Tax
Rules, 1962 viz., 8-1/3 percent of the emoluments of each employee during that year.
TATA COMMUNICATIONS GRATUITY RULES
16
FORM A
(See Rule 38 of Rules)
Form of Agreement
I ............................................................ hereby declare that I have read/ read to me
the Rules and Regulations of the TATA Communications Employees’ Gratuity Fund Trust and
that I agree to be bound by them and by subsequent additions and/or alterations, if any, to them
from time to time made in pursuance of the Rules and Regulations of the Fund.
Signature ..................
Designation & Office
1. Name .................................................................................................
(Surname) (First name) (Middle name)
2. Designation and staff No. if any : ...............................
3. Sex : ...........................
4. Date of Birth .................
5. Religion .......................
6. Father's/Guardian's name .......................................................................
7. Marital status ......................................................................................
8. Husband's/Wife's name .........................................................................
9. Identification mark ...............................................................................
10. Branch/Office in which working ...............................................................
11. Date of appointment .........................
12. Permanent Address
..............................................................................................
..........................................................................................................
..........................................................................................................
TATA COMMUNICATIONS GRATUITY RULES
17
13. Present Address
..............................................................................................
..........................................................................................................
........................................................................................................
Tel No.
Place ...................... Signature/
Thumb impression of the employee
Date .......................
_________________________________________________________________
(For Office use only)
Certified that the above declaration has been executed by Shri ..................
............................................................ employed as ...................................
................................................ at ......................................... before me after he had read Rules and
Regulations of the Fund.
Place ....................
Date ..................... Signature of the
Controlling Officer.
TATA COMMUNICATIONS GRATUITY RULES
18
FORM B
(See Rule No.33(1) of the Rules)
Nomination
To,
The Secretary,
Board of Trustees,
TATA Communications Employees’ Gratuity Fund Trust
Mumbai – 400 098.
Sir,
I, Shri/Shrimati/Kumari ................................................................. whose particulars are
given in the statement below, hereby nominate the person(s) mentioned below to receive the
gratuity payable after my death as also the gratuity standing to my credit in the event of my death
before the amount has become payable, or having become payable has not been paid and direct
that the said amount of gratuity shall be paid in proportion indicated against the name(s) of the
nominee(s).
2. I hereby certify that the person(s) mentioned is/are a member(s) of my family
within the meaning of Explanation 1 to Rules 33 of the Rules and Regulations.
3. I hereby declare that I have no family within the meaning of Explanation 1 to Rule
33 of the Rules and Regulations.
4. (a) My father/mother/parents is/are not dependent on me.
(b) My husband's father/mother/parents is/are not dependent on my husband.
5. I have excluded my husband from the family by a notice dated the ............... to the
Secretary in terms of proviso to Explanation 1 (ii) to Rule 33 of the Rules and Regulations.
6. Nomination made herein invalidates my previous nomination.
Nominee(s)
Name in full with Relationship Age of Proportion by
full address of with the nominee which the gratuity
nominee(s) employee will be shared
1 2 3 4
1.
2.
3.
4.
so on.
Statement
TATA COMMUNICATIONS GRATUITY RULES
19
1. Name of employee in full
2. Sex
3. Religion
4. Whether unmarried/married/widow/widower
5. Department/Branch/Section where employed
6. Post held with Ticket or, Serial No. if any
7. Date of appointed
8. Permanent address:
Village.. Thane.. Sub-division..
Post Office.. District.. State..
Place : .......................
Date : ....................... Signature/Thumb impression
of the Employee.
Declaration of Witnesses
Nomination signed/thumb-impressed before me.
Name and address in full of Signature of witnesses
1. 1.
2. 2.
Place : ......................
Date : ......................
TATA COMMUNICATIONS GRATUITY RULES
20
Certificate by the Controlling Officer
Certified that the particulars of the above nomination have been verified.
Date : .....................
Place : ..................... Signature of the Controlling Officer
-------------------------------------------------------------------------------------------------------------------
Acknowledgement by the Secretary
The above nomination has been recorded.
Date : ...................
Place : ................... Signature of the Secretary
(1) Strike out the Words and/or Paragraphs not applicable.
(2) Secretary will send the duplicate copy of this form duly acknowledged to the
employee.
.......
TATA COMMUNICATIONS GRATUITY RULES
21
FORM C
(See Rule 33(4) of the Rules)
Fresh Nomination
To,
The Secretary,
Board of Trustees,
TATA Communications Employees’ Gratuity Fund Trust
Mumbai – 400 098
Sir,
I, Shri/Shrimati/Kumari ...................................................... Staff No. &
Designation ................................... of (name of Unit) ................................. have acquired a
family within the meaning of Explanation 1 to Rule 33 of the Rules and Regulations of the
TATA Communications Employees’ Gratuity Fund Trust with effect from the
................................. in the manner indicated below and therefore nominate afresh the person (s)
mentioned below to receive the gratuity payable after my death as also the gratuity standing to my
credit in the event of my death before that amount has become payable or having become payable
has not been paid and direct that the said amount of gratuity shall be paid in proportion indicated
against the name(s) of the nominee(s).
2. I hereby certify that the person(s) nominated is/are member(s) of my family within
the meaning of Rules and Regulations.
3. (a) My father/mother/parents is/are not dependant on me.
(b) My husband's father/mother/parents is/are not dependent on my husband.
4. I have excluded my husband from my family by a notice dated ............ to the
Secretary, Board of Trustees in terms of Explanation 1 to Rule 33 of the Rules and Regulations.
Nominee (s)
Name in full Relationship Age of Proportion by
full address of with the nominee which the gratuity
nominee(s) employee will be shared
1 2 3 4
1.
2.
3.
4.
Place : .......................
Date : ....................... Signature and Thumb impression
of the Employee.
TATA COMMUNICATIONS GRATUITY RULES
22
Declaration of Witnesses
Fresh nomination signed/thumb Signature of Witnesses
impressed before me.
Name in full and addresses of Witnesses Signature of witnesses
1. 1.
2. 2.
Place : ......................
Date : ......................
TATA COMMUNICATIONS GRATUITY RULES
23
Certificate by the Controlling Officer
Certified that the particulars of the above nomination have been verified.
Date : .....................
Place : ..................... Signature of the Controlling Officer
-------------------------------------------------------------------------------------------------------------------
Acknowledgement by the Secretary
Date : ...................
Place : ................... Signature of the Secretary
(1) Strike out the words and paragraphs not applicable.
(2) Secretary will send the duplicate copy of this form duly acknowledged to the
employee.
.......
TATA COMMUNICATIONS GRATUITY RULES
24
FORM D
(See Rule 33(5) of the Rules)
Modification of Nomination
To,
The Secretary,
Board of Trustees,
TATA Communications Employees’ Gratuity Fund Trust
Mumbai – 400 098
Sir,
I, Shri/Shrimati/Kumari ............................................... Staff No. & Designation
.......................... of .......................... (Name of the Unit) hereby give notice that the nomination
filed by me on ............. and recorded under your reference ........................................................
dated .................. shall stand modified in the following.
(Here give details of the modification intended)
Place : ....................... Signature/Thumb impression
of the employee.
Date : .......................
-----------------------------------------------------------------------------------------------------------------
Declaration of Witnesses
Modification of nomination signed/thumb impressed before me.
Name in full and addresses of Witnesses Signature of witnesses
1. 1.
2. 2.
Place : ......................
Date : ......................
TATA COMMUNICATIONS GRATUITY RULES
25
Certificate by the Controlling Officer
Certified that the modifications mentioned above have been verified.
Certificate by the Secretary
Certified that the above modifications have been recorded.
Date : .....................
Place : ..................... Signature of the Secretary
-------------------------------------------------------------------------------------------------------------------
(1) Strike out the words not applicable.
(2) Secretary will send the duplicate copy of this form duly acknowledged to the
employee.
.......
TATA COMMUNICATIONS GRATUITY RULES
26
FORM E
(See Rule 34(1) of the Rules)
Application for Gratuity by an Employee
To,
The Secretary,
Board of Trustees,
TATA Communications Employees’ Gratuity Fund Trust
Mumbai – 400 098.
Sir,
I hereby apply for payment of gratuity to which I am entitled under rule 9 of the
Rules and Regulations of the TATA Communications Employees’ Gratuity Fund Trust on
account of my superannuation/retirement/resignation after completion of not less than five years
of continuous service/total disablement due to accident/total disablement due to disease with
effect from ................. Necessary particulars relating to my appointment in the Company are
given in the statement below :
(1) Name in full :
(2) Address in full :
(3) Department/Branch/Section where last employed :
(4) Post held with staff No.:
(5) Date of appointment :
(6) Date and cause of termination of service :
(7) Total period of service :
(8) Amount of wages last drawn :
(9) Amount of gratuity claimed :
(10) House Building advance liability towards :
(a) Principal of advance :
(b) Interest on advance :
2. I was rendered totally disabled as a result of (here give the details of the nature of
disease or accident).
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
TATA COMMUNICATIONS GRATUITY RULES
27
The evidence/witnesses in support of my total disablement are as follows : (here
give details)
3. Payment may please be made in cash/open or crossed bank cheque/Demand Draft.
4. As the amount of gratuity payable is less than Rs.1,000/- (Rupees One Thousand
only), I shall request you to arrange for payment of the sum due to me by Postal Money Order at
the address mentioned above after deducting postal money order commission therefrom.
Yours faithfully,
Place : ................
Signature/Thumb impression of the employee.
Date : ................
Note : Strike out the words or paragraphs not applicable.
..........
TATA COMMUNICATIONS GRATUITY RULES
28
FORM F
(See Rule 34(3) of the Rules)
Application for Gratuity by a Nominee
To,
The Secretary,
Board of Trustees,
TATA Communications Employees’ Gratuity Fund Trust
Mumbai – 400 098.
Sir,
I hereby apply for payment of gratuity to which I am entitled under rule 9 of the
Rules and Regulations of the TATA Communications Employees’ Gratuity Fund Trust as
nominee of late Shri/Shrimati/Kumari .................................................................. who was an
employee of TATA Communications Limited and died on the ..................... The gratuity is
payable on account of the death of the aforesaid employee while in service/superannuation of the
aforesaid employee on ....................... /retirement or resignation of the aforesaid employee on
...................... after completion of ........ years of service/total disablement of the aforesaid
employee due to accident or diseases while in service with effect from ............... Necessary
particulars relating to my claim are given in the statement below :
(1) Name of applicant Nominee :
(2) Address in full of the applicant Nominee :
(3) Marital status of the applicant nominee :
(unmarried/married/widow/widower)
(4) Reference No. of recorded nomination available :
(5) Name in full of the employee :
(6) Department/Branch/Section where last employed :
(7) Post last held with staff No. :
(8) Date of appointment of the employee :
(9) Date and cause of termination of service
of the employee :
(10) Date of death and evidence/witness as proof as
death of the employee :
(11) Total period of service of the employee :
(12) Amount of wages last drawn by the employee :
TATA COMMUNICATIONS GRATUITY RULES
29
(13) Total gratuity payable to the employee :
(14) Share of gratuity claimed :
(15) House Building Advance Liability towards
(a) Principal of advance :
(b) Interest due on advance :
2. I declare that the particulars mentioned in the above statement are true and correct
to the best of my knowledge and belief.
3. Payment may please be made in cash/open or crossed bank cheque/Demand Draft.
4. As the amount payable is less than Rs.1,000/- (Rupees One Thousand only), I
shall request you to arrange for payment of the sum due to me by Postal Money Order at the
address mentioned above after deducting postal money order commission therefrom.
Yours faithfully,
Place : ................
Signature/Thumb impression of
Date : ................ applicant's nominee
Note : Strike out the words and/or paragraphs not applicable.
..........
TATA COMMUNICATIONS GRATUITY RULES
30
FORM G
(See Rule 34(4) of the Rules)
Application for Gratuity by a Legal Heir
To,
The Secretary,
Board of Trustees,
V.S.N.Ltd.Employees'
Gratuity Fund,
....................
Sir,
I hereby apply for payment of gratuity to which I am entitled under rule 9 of Rules
and Regulations of the Videsh Sanchar Nigam Employees' Gratuity Fund as a legal heir of late
Shri/Shrimati/Kumari .................................................................. who was an employee of Videsh
Sanchar Nigam Limited and died on the ..................... without making any nomination. The
gratuity is payable on account of the death of aforesaid employee while in
service/superannuation of the aforesaid employee on the ....................... retirement or resignation
of the aforesaid employee on the ...................... after completion of ........ years of service/total
disablement of the aforesaid employee due to accident or disease while in service with effect
from the ............... Necessary particulars relating to my claim are given in the statement below :
(1) Name of applicant legal heir :
(2) Address in full of applicant legal heir :
(3) Marital status of the applicant legal heir :
(unmarried/married/widow/widower)
(4) Name in full of the employee :
(5) Relationship of the applicant with the employee :
(6) Department/Branch/Section where the
Employee last worked :
(7) Post last held by the employee with staff No. :
(8) Date of appointment of the employee :
(9) Date and cause of termination of service :
(10) Date of death of the employee and evidence/
witness in support thereof :
(11) Total period of service of the employee :
TATA COMMUNICATIONS GRATUITY RULES
31
(12) Amount of wages last drawn by the employee :
(13) Total gratuity payable to the employee :
(14) Percentage of the gratuity claimed :
(15) Basis of the claim and evidence/witness in
support thereof. :
(16) House Building Advance Liability towards
(a) Principal of advance :
(b) Interest due on advance :
2. I declare that the particulars mentioned in the above statement are true and correct
to the best of my knowledge and belief.
3. Payment may please be made in cash/open or crossed bank cheque/Demand Draft.
4. As the amount payable is less than Rs.1,000/- (Rupees One Thousand only), I
shall request you to arrange for payment of the sum due to me by Postal Money Order at the
address mentioned above after deducting postal money order commission therefrom.
Yours faithfully,
Place : ................
Signature/Thumb impression of
Date : ................ applicant's nominee
_____________________________________________________________________________
Note : Strike out the words and/or paragraphs not applicable.
..........
TATA COMMUNICATIONS GRATUITY RULES
32
Instructions on Gratuity Claims
1. The following documents should invariably accompany for gratuity authorisation :
1.1 Copy of office order indicating the occasion and date of relieving/striking off the
name of the employee - One copy only.
1.2 Application for gratuity by the employee or his/her legal heir/nominee in Form E
or F or G, as the case may be - one copy only.
1.3 Statement of service in Form R-1 - One copy only.
1.4 Gratuity calculation sheet (Form R-2) - 2 copies.
1.5 A copy of the Nomination form. where applicable.
2. As the gratuity payment is authorised by Gratuity Fund on the basis of information
furnished in Forms R-1 and R-2, it is of utmost importance that the basic information
about commencement and cessation of service, salary, HBA liability, vehicle loan to be
set off against gratuity etc. is correctly shown by the concerned division/unit etc. and no
duplicate claim is submitted.
3. After the gratuity amount authorised by the Gratuity Fund has been paid to the ex-
employee/nominee(s) or legal heir(s), a consolidated statement for the month in Form R-3
should be submitted in duplicate to the Secretary, Gratuity Fund to enable reimbursement
to the concerned division etc. Here it may be ensured that names, staff Nos., authority
number and date etc. are shown correctly so as to facilitate reimbursement.
4. Further, a consolidated statement in Form R-4 showing the particulars of gratuity
payments authorised upto the end of financial year, but not paid or partially paid during
that year should also be sent so as to reach the Secretary, Gratuity Fund by the 30th April
each year for the purpose of reconciliation and creation of liability.
.......
TATA COMMUNICATIONS GRATUITY RULES
33
FORM R-1
VIDESH SANCHAR NIGAM LIMITED
.................................... HQ/Branch
STATEMENT OF SERVICE
1. Name :
2. Staff No. :
3. Designation :
4. Department :
5. Date of joining : F.N./A.N.
6. Date of leaving VSNL : F.N./A.N.
7. *Service as apprentice/ : From ............... to .................
trainee etc. .......... years ........ months ...... days ........
8. Service in regular : From ............... to .................
establishment ........ years .......... months ....... days ........
9. Total qualifying service
(excluding the non- : From ............... to .................
qualifying *period of years ............... months ........... days
apprenticeship/training
at Sl.7)
Certified that the employee was not deputationist/foreign assignment during the
period of service.
OR
Certified that the total qualifying service shown at Sl.9 includes the period of
deputation/foreign assignment from ................ to ................ for which foreign service
contributions were recovered at the prescribed rates togetherwith interest if any due and credited
to the company account.
Signature :
Designation :
-------------------------------------------------------------------------------------------------------------------
Sl.9 *However service as Trainee Officer in regular scales of pay and service rendered as
trainee/apprentice by employees during the course of their regular employment in VSNL
qualifies for grant of gratuity.
TATA COMMUNICATIONS GRATUITY RULES
34
FORM R -2
VIDESH SANCHAR NIGAM LIMITED
DIVISION
GRATUITY CALCULATION STATEMENT
(To be submitted in duplicate to Gratuity Trust)
Calculation of Gratuity payable to Shri .............................................................. Staff No.
........................ Designation ....................................................... Department ...................... as per
particulars given below :
1. Date of appointment : F.N./A.N.
2. Date of leaving VSNL on
superannuation/resignation/
death/termination of service : F.N./A.N.
3. Period of continuous service : ....... yrs ....... months ......... days
4. No. of completed years for
entitlement of Gratuity : ........................ years.
5. Last emoluments drawn : Pay @ Rs.............. + D.A.@ Rs............... =
Rs..............
6. Amount of balance of HBA : Principal Rs.................
plus interest due thereon Interest Rs.................
to be adjusted out of .......................
gratuity amount payable
6.A. Vehicle loan Rs................
Total : Rs................
=========
7. (A) Payment of Gratuity under : @ 15 days' emoluments for each
Rule 9 (ii) of Gratuity Rules completed year of service.
Gratuity : Emoluments x 15/26 x No. of years of
service = Rs. ..................
(B) Payment of Gratuity in case of death under Rule 9 (ii)(b) of Gratuity Rules :
i) Total last emoluments drawn : Rs. .....................
x No. of months (vide Rule
9(ii)(b).
TATA COMMUNICATIONS GRATUITY RULES
35
ii) Amount of Gratuity : Rs. ......................
Amount of Gratuity admissible
(vide 7(A) or 7(B), whichever is more) : Rs. ......................
Less amount of HBA + interest to be
adjusted (vide 6 above) : Rs. .......................
Net amount of gratuity payable : Rs. ......................
...................
TATA COMMUNICATIONS GRATUITY RULES
36
VIDESH SANCHAR NIGAM EMPLOYEES' GRATUITY FUND
No.: dated the 199
Payment of Rs._____________________________________________________________
_____________________________________________________________________________
only authorised. In case of payment under 7 (B) above Rs.______________ to be borne by the
Gratuity fund and the balance Rs._________________ to be borne by VSNL (Debitable Account
Code MG.7.213.05-Gratuity Fund).
Secretary
VSNL Employees' Gratuity Fund
TATA COMMUNICATIONS GRATUITY RULES
37
FORM R-3
VIDESH SANCHAR NIGAM LIMITED EMPLOYEES' GRATUITY FUND
___________________________ Branch
Statement of Gratuity Payment made during the month of ______________ 199___.
Name of
employee
Staff No.
& Desig-
nation
Amount
authorised
Rs.
Amount
paid
Rs.
To whom
paid
Authority
No.& Date
Remarks
_____________________
Total amount to be :
reimbursed * _____________________
* Reimbursement cheque to be issued in favour of ___________________
Signature ___________________
Designation ___________________
TATA COMMUNICATIONS GRATUITY RULES
38
FORM R-4
VIDESH SANCHAR NIGAM EMPLOYEES' GRATUITY FUND
_____________________________ Branch.
Statement showing gratuity authorised upto end of March 199 but not paid/partially
paid upto to 31st March,199 .
Name
Staff No. &
Designation
Amount
authorised
Authority
No. &
Date
Remarks (indicating date of
subsequent payment in the
intervening period of
reasons for non-payment/
partial payment)
Signature :
Designation :
TATA COMMUNICATIONS GRATUITY RULES
VIDESH SANCHAR NIGAM LIMITED
EMPLOYEES' GRATUITY FUND
RULES & REGULATIONS
TATA COMMUNICATIONS GRATUITY RULES