Continuity of Service in Gratuity Act

monicakaushik2007 · #1 (**permalink**) 06-11-2008, 10:59 AM

Hi Friends,

I have a small Query regarding Continuity of service for availing the benefit of Gratutity Act.

If an employee has completed 5 years in the organization but he had availed few Leave without Pay during the run of 5 years of services.

Do we have to reduced those LWP's while claculating the Gratuity or is there some other Provision also.

Kindly throw some light on this.

Regards,
Monica Kaushik

Madhu.T.K · #2 (**permalink**) 07-11-2008, 01:36 PM

A reasonable LOP will not make any difference in Gratuity. Continuous service means a total number of working days of 240 days in a year. The amount of gratuity is not based on the total salary paid during all these years but is calculated on the basis of his salary at the time of leaving service. Therefore, if one qualifies himself for gratuity (by means of his length of service for not less than 5 years and each year having done at least for 240 days of work) his gratuity is calculated without refernce to any LOP.

Regards,

Madhu.T.K

monicakaushik2007 · #3 (**permalink**) 10-11-2008, 09:43 AM

Thanks a lot Madhu..............

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