Other Important Definitions

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Other important definitions

There are many other important definitions in the Act:

Appropriate government:

It’s in relation to an establishment, under the control of the Central government or the State Government. It may be noted that many large establishments have branches in more than one State. In such cases, the ‘appropriate Government’ is the Central Government and any dispute connected with the payment or non-payment of gratuity falls within the jurisdiction of the ‘Controlling Authority’ and the ‘Appellate Authority’ appointed by the Central Government under Sections 3 and 7.

A Company Secretary should know whether the ‘appropriate Government’ in relation to his establishment is the Central Government or the State Government. He should also find out who has been notified as the ‘Controlling Authority’ and also who is the ‘Appellate Authority’. It may be noted that any request for exemption under Section 5 of the Act is also to be addressed to the ‘appropriate Government’. It is, therefore, it’s necessary to be clear on this point.

Continuous Service:

Under section 2A, of the Act, a continuous service means an uninterrupted service. It includes the service interrupted on the account of an accident, sickness, absence from duty (without leave).

Family:

A family of an employee consist of the employee himself, his wife, his children, his parents, his dependent siblings (unmarried), etc.

While, in case of female employee: herself, her husband, her children, her parents and also the parents of her husband.

Retirement:

This means the termination of the employees’ service.

Superannuation:

This means the attainment of the age a fixed in the contract of the service. When the employee reaches that age s/he shall vacate the employment.

Wages:

The total emoluments, earned by an employee, while on duty or on leave in the terms and conditions’ accordance of his employment. But it doesn’t include the bonus, overtime wages, commission, and rent allowance, etc.

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