Human Resources GSPL HR PL09 Employee Gratuity Policy

Employee Gratuity Policy

Document Classification Internal

Document Number: Version: Document Owner:
GSPL HR PL09 1.0 Human Resources
Updated On: Review Frequency: Effective Date:
14-January-2016 Annual 21-January-2016
Updated By: Reviewed By: Approved By:
Ravi Gupta Director, Human Umesh Hora Chief Financial Mausam Mathur Chief
Resources Officer (CFO) People Officer (CPO)

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Human Resources GSPL HR PL09 Employee Gratuity Policy
Table of Contents
I. Scope ............................................................................................................................................... 3
II. Purpose ........................................................................................................................................... 3
III. Definitions ................................................................................................................................... 3
A. Gratuity ....................................................................................................................................... 3
IV. Policy Statement ......................................................................................................................... 3
A. Rate of Calculation ...................................................................................................................... 3
B. Forfeiture of Gratuity .................................................................................................................. 4
C. Payment incase of Death / Permanent Disablement ................................................................. 4
V. Eligibility .......................................................................................................................................... 4
VI. Administration of the Policy ....................................................................................................... 4
VII. Policy Changes ............................................................................................................................ 5
VIII. Document Change Tracker.......................................................................................................... 6

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Human Resources GSPL HR PL09 Employee Gratuity Policy
I. Scope
This Employee Gratuity Poli y this Poli y is effe tive January 10, 2016 and supersedes any
previous policy and/or practice related to payment of gratuity benefits to an employee. This
Policy applies to all employees of Girnar Soft Private Limited (GSPL), its subsidiaries and affiliates
olle tively referred to as the Co pa y .

II. Purpose
The purpose of the Employee Gratuity Policy is to define the guidelines for the payment of
Gratuity. Gratuity is a part of a defined benefit plan and is one of the retirement benefits offered
by GSPL to its employees at the end of their tenure at GSPL or in the event of their demise or
disablement while in service.

III. Definitions
A. Gratuity
In accordance with the Payment of Gratuity Act, Gratuity is payable to an employee in the
event of his/her death or permanent disability due to accident or illness while in service or
on the termination of his/her employment after he/she has rendered continuous service for
not less than five years.

Note: Other terms used herein shall have same meaning as defined in Payment of Gratuity Act, 1972
(as amended from time to time)

IV. Policy Statement

GSPL gives the benefit of gratuity to its employees in accordance with the Payment of Gratuity
Act 1972 (post amendment). Gratuity is processed and paid out with the Full and Final
settlement amount to all eligible employees, upon death or permanent disability while in service
or the end of their tenure in GSPL, whether by termination or resignation provided they have
completed five (5) or more years of full time service.

A. Rate of Calculation
The calculation of the rate of calculation is given as follows:

(Current basic*15*tenure in the Company in years)/26

Where:

26 = Days of the month (excluding Sunday)

15 = Days of salary for each completed year

The maximum gratuity amount payable to an employee is capped at INR Ten (10) lakhs.

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Human Resources GSPL HR PL09 Employee Gratuity Policy
B. Forfeiture of Gratuity
An employee, whose services are terminated for any act of wilful omission or negligence or
misconduct causing loss and/or destruction of property belonging to the employer, shall
forfeit the eligibility for gratuity to the extent of the value of the damage or loss so caused.
The gratuity payable to such employee may be wholly or partially forfeited.

C. Payment incase of Death / Permanent Disablement

The company will pay the amount due as gratuity within a period of 30days to the employee
/ nominee incase of permanent disability / death of an employee

The guideline related to 5 year tenure will not be binding in the above scenarios
The rate of calculation for payment will remain unchanged

V. Eligibility
The following factors determine the eligibility of an employee of GSPL for gratuity:

The employee must be a permanent employee

The employee should have completed minimum five (5) years of continuous service with
the employer
If an employee or a business unit is shifted to the Company from another company
based on a strategic or business decision, the Company reserves the right to reckon
prior service of the employee or employees of such shifted business unit, from the
original date of joining in the other company, for the purpose of computing eligibility for
gratuity and the amount to be paid out as gratuity
In case of an acquisition, the acquiring Company reserves the right to reckon prior
service of the employee or employees of the acquired entity, from the original date of
joining in the other company, for the purpose of computing eligibility for gratuity and
the amount to be paid out as gratuity

I the eve t of a e ployees death or per a e t disa ility due to a ide t or illness while in
service, the eligibility requirement of 5 or more years of full time service does not apply

VI. Administration of the Policy

The Human Resource department is responsible for administering, tracking and communicating
this Policy and answering any questions that may arise. The Chief People Office shall be
responsible for any interpretation of this Policy. Management shall assist in the implementation
of this Policy by disseminating it within their departments and creating in their departments a
respect for the seriousness of compliance to this Policy.

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Human Resources GSPL HR PL09 Employee Gratuity Policy
VII. Policy Changes
GSPL has the absolute right, in its sole discretion, to interpret and modify, amend and or
terminate this Policy with respect to any employee, group of employees or in its entirety at any
time.

The decision to terminate or amend may be due to changes in law or any other reason, including
cost. If the Policy is terminated, an individual shall not have any further rights under this Policy.
This Policy does not create an obligation for continued employment or imply an employment
contract.

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 Human Resources GSPL HR PL09 Employee Gratuity Policy

VIII. Document Change Tracker

Version: Date Change Section Updated By Reviewed By Approved By

1.0 14-January- Initial All Ravi Gupta Ravi Gupta Mausam Mathur
2016 Draft Director, Human Director, Human Chief People
Resources Resources Officer

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