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[ Questions and Answers]

Payment of Gratuity

Question: I worked in a firm from 01/06/92 to 30/04/07 -14 years.

The salary paid to me - when I left the firm is - Basic Rs. 15,000 + Living Allowance Rs. 25,000 = totally Rs. 40,000. When I claimed for my gratuity the management paid only Rs. 60,000 in instalments as follows:

Between 30/04/07 - 30/04/08 = 30,000.00 (Three instalments @ 10,000)

After 30/04/08 = 30,000 (One payment)

Total = Rs. 60,000.00

Please let me know what is the balance gratuity money (including the default charges - after one year) the employer will have to pay me.

S. Sumangala - Jothie, Trincomalee

Answer: You should take up your matter with the Labour Department in the area where your employer's office is, without any delay. You are entitled to half months salary for every year of service as gratuity. In our estimation you are entitled to about Rs. 105,000 (14 years x 7500) of which they have paid your Rs. 60,000.

Thus there is a balance due to you of Rs. 45,000. In our estimation we have only taken the salary of Rs. 15,000 per month and not the allowances. Gratuity is not payable on cost of living allowance but we are not sure of the nature of your allowance. This you may clarify with the Labour officer.

Appeal to Labour Tribunal

Question: I was a permanent employee with more than 10 years service in a large Company down South.

A labour dispute of mine, when it was taken up with the Labour Commissioner, after my retirement, was decided in favour of the employer. However, I am not satisfied with the said order.

Please let me know whether,

a. I can file a case at the Labour Tribunal, on the same dispute, within six (6) months;

b. and if I do so, whether it will become unfavourable for me in lieu of the earlier decision of Labour Department.

I would like to have your advise through the valuable "Question and Answer" Page in the Daily News.

R. Waduge, Kalutara.

Answer: Yes you can take up your case with the Labour Tribunal but you have to do it within six months from the date of termination. The Labour Tribunal will go through as a fresh case. The decision of the Labour Commissioner will not be considered unfavourable.

The purpose of going to the Labour Tribunal is lost if they are to be guided by any previous decision. Therefore, you can be assured that the Labour Tribunal will hold a fair hearing and give a decision. Labour Tribunal only entertains cases of termination of service and any dispute over gratuity payment. In your case there must have been a good reason why the Labour Commissioner gave a ruling in favour of your employer.

Payment of a month's salary in lieu of Notice

Question: I am working as the Administration Manager in a private limited liability company. I joined them on nine months probation and at the end of the probationary period they extended it by another three months. That also ended on June 9, 2009. On June 19 they gave me a contract for 1 year and with a reduction of my salary by 40%. Since I did not have any other option I accepted the employment on contract basis for a lesser salary.

As per the contract, I have to give one month's notice or salary in lieu of notice.

1. If I want to resign now, can I deduct my EPF contribution of 8% and pay the balance amount to the Company?

2. If I pay total amount (1 month's salary) without deducting the 8% will the Company be liable to pay 12% contribution for EPF for that month?

I appreciate a reply by email at your earliest.

Roshan Perera, Email:Address.

Answer: If as per your terms of contract you have to give a moth's notice it is best that you give notice. However, if you are unable to give the months notice you are not legally bound to pay a months salary. However, you may do so in order to have good relationship if in case you require a certificate of service. The labour regulation does not support the employee having to pay back a month's salary to the employer. In case you decide to pay the one months salary, you cannot deduct the 8% EPF contribution. Your employer must contribute the 12% and forward to the EPF along with your 8% contribution for that month.

Sorry we do not reply emails but provide answers only through the Daily News papers OPA At Your Service column on Thursdays.

Dual Passport

Question: My son and family migrated to Canada as they got Permanent residency a few years back. Now they are qualified for Canadian Citizenship. They are keen to get a Dual Passport and it's believed it will entail a lot of money. However, recently with the war ending, I understand the Government of Sri Lanka has reduced the fees payable to obtain a dual passport.

Please advise, the present charges payable to obtain it.

John Fernando, Wattala.

Answer: What you mean by Dual Passport is Dual Citizenship. Once you get Dual Citizenship your son and his family can apply for the Sri Lankan Passport. In order to obtain the Canadian Passport they may have to surrender the Sri Lankan Passport or get them cancelled. Usually in order to get Citizenship in any country, one has to renounce the Sri Lankan Citizenship. Only then you can get Citizenship of the foreign country. Once you get the Citizenship of the foreign country, you can apply for Dual Citizenship to Sri Lanka your country of birth.

You have been misinformed about the reduction of fees payable to obtain dual citizenship. We checked with the Department and we were informed that there is no change and they are not aware of any move to change it either. The fees as they stand now are as follows.

For your son Rs. 200,000, for his spouse and children under 18 years of age it is Rs. 50,000, children over 18 years of age it is Rs. 200,000.

W&OP scheme for retired lady teacher

Question: I am a graduate teacher who held a pensionable post and served in Government School (Vishaka Vidyalaya, Col. 4) for 32 years, I joined my service in 1963, after graduation from the University of Peradeniya and retired in December 1995 after completing 32 years in service. I have not contributed to the W&OP scheme earlier hence I wish to join it now. Could you please be kind enough to let me know as to what I should do as I am clueless regarding this matter. Sir, in case of my death before my husband, could you please advice me as to how he can enjoy the benefits.

Mrs. S. Senanayake, Colombo 5.

Answer: You may refer the Daily News paper of Thursday, May 7, 2009 in the OPA at your Service page a similar question titled 'Option for female teacher to join W and OP and the answer therein. Since you were a teacher in a government school and have joined the service before, 1st August, 1983, you still have the option of joining the W&OP even though you have retired now. You have to apply before June 30, 2009, in order to enroll yourself.

You have to write to the Zonal Director of Education of the area where you served last indicating your wish/desire to join the W&OP Fund. You also need to give a letter to the Divisional Secretary from whose office you are now drawing your pension stating that you wish the monthly instalment for the W&OP Fund to be deducted from your pension and get it approved.

You will be called upon to contribute for 15 years equivalent to 180 months/instalments from the date you join the W&OP.

In case of your demise before the completion of 15 years and pre decease your spouse, he will have to pay upfront the balance number of instalments before he can commence enjoying the W&OP benefit.

Tax Free Ceiling

Question: I have savings accounts in the NSB, and Bank of Ceylon. I also have a fixed deposit in a private enterprise. I am a senior citizen and if my total income exceeds Rs. 300,000 am I liable for tax payment? Or is the ceiling on tax Rs. 500,000? (Free of Tax).

Thanking you for an early reply.

Dr. E.S.N. de Silva, Hendala, Wattala.

Answer: Yes for senior citizens the tax free interest income per year is Rs. 500,000, if the assessable other income if any is below Rs. 300,000 per year.

In your case you have deposits in both State Banks and in private Institution. If your interest income from the Private institution is below Rs. 300,000 per year, then you are exempted from tax on the balance Rs. 200,000 interest received from the State Banks.

If the interest from the Private Institution is more than Rs. 300,000 then that excess amount will be less as tax free from State Banks. In any case are you sure that you don't get assessable income of over Rs. 300,000 per year, other than from interest, we mean from your profession. You should consult a tax officer with all details.