6.

GRATUITY POLICY
01
(a) Gratuity shall be granted for good, efficient and faithful service to whole-time

employees of the company and shall exclude the following:

i) Casual and non-regular employees;

ii) employees on deputation; and

iii) apprentices and trainees, and Note (1)

Note 1:Persons who retired before attaining the age of normal retirement of 60 years

and who have not received the maximum amount of gratuity in their earlier

service in any civil or military department or central government or from

services of any local funds administered by the government or from any other

institution prior to re-employment in the Institute may be eligible for benefits

of gratuity rules of the Institute.

(b) It shall be granted in the following circumstances:

i) discharge on the abolition of post;

ii) permanent incapacity due to bodily or mental infirmity;

iii) superannuation at the age of 60 years; and

iv) after completion of five years of service at the Institute in case of retirement/

resignation or term over.

Provided that -

i) Gratuity shall not be admissible to an employee whose services are terminated

for misconduct, insolvency or inefficiency.

ii) Except in the case of death, the gratuity will be admissible only after five years

of qualifying service.

(c) Qualifying services shall mean all service rendered in the Institute after completion of

18 years of age, except periods of service rendered as Apprentice and extra-ordinary

leave without leave salary.

(d) i) Gratuity shall be equal to one-fourth of the monthly emoluments for each

completed six monthly periods of service subject to a maximum of 16½ times

of the emoluments or Rs. 20 lacs whichever is less.

ii) In case of death, the amount of gratuity shall be calculated under (i) or as

worked out below, whichever be more:

Length of Service Death Gratuity payable to family

1. Less than one year 2 times of `emoluments’

2. One year or more but less than 5 years

6 times of `emoluments’

3 5 years or more but less than 11 years 12 times of monthly ‘emoluments’

4. 11 years or more but less than 20 years 20 times of monthly `emoluments’

5. 20 years or more Half of monthly emoluments for every

completed six-monthly period of

qualifying service subject to a maximum

of 33 times the `emoluments’.

iii) If an employee who has become eligible for payment of the Institute’s share of

contribution to the Contributory Provident Fund under rules of the Institute

dies within a period of 5 years after he/she retires from the service of the

Institute and the sums actually received by him/her at the time of death on

account of Institute share of contribution to contributory provident fund

together with gratuity under rule 01(d)(i) is less than the amount equal to 12

times the emoluments, a gratuity equal to the deficiency shall be granted to the

person or persons nominated by him.

Explanation: For the purpose of this paragraph, `emoluments’ means pay

including dearness pay, if any, leave remuneration of the nature of pay (including

dearness pay, if any) received in respect of the foreign service, immediately

before his retirement or relinquishment of service subject to a maximum of

Rs. 9000/- per month.

02

i) Every employee shall make a nomination in the Common Nomination form 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 payment of gratuity is made,

indicating the shares payable to each member. In the case of an employee having no
family, the nomination may be made in favour of a person, or persons, or a body of

persons, corporate or incorporate.

ii) In the event of there being no nomination, the gratuity on death may 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 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 more surviving members of the family

as in (v) to (ix) below, the gratuity may be paid to all such members, in equal

shares.

Explanation: For the purpose of this paragraph, `family’ 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 adopted children;

iv) unmarried and widowed daughters;

v) brothers below the age of 18 years and unmarried and widowed sisters

including step brothers and step sisters;

vi) father;

vii) mother;

viii) married daughters; and

ix) children of a pre-deceased son.

03 When an employee of a company under the control of the Ministry of

Education, Government of India is permanently absorbed at the B R BANG PVT.LTD. past service will
count

for retirement benefits at B R BANG PVT.LTD. provided the transfer is certified to be in the public
interest

and also subject to the following conditions:

(a) The transfer is made with the consent of parent institution;

(b) B R BANG PVT.LTD. shall be the sole judge to decide as to whether the absorption is in the public

interest or not;

(c) The parent institution pays the capitalised value of pension and gratuity in respect of
past service of the employee in that institution to B R BANG PVT.LTD. at the time of his permanent

absorption; and

(d) In case the employee in question is on CPF Scheme, the accumulations in the CPF

account and the capitalised value of gratuity to be transferred by the parent

organisation to the B R BANG PVT.LTD.

04 Gratuity under National Pension System

• The staff members covered under NPS are admissible for service gratuity, retirement

gratuity and death gratuity.

• The service gratuity is admissible on completion of minimum of five years of qualifying

service at the Institute.