Hi Parez,
An employee would be eligible for gratuity only after he completes 60 months in one organisation. An organisation at its discretion can provide gratuity before completing 60 months.
Regards
Santosh:)
From India, Madras
8An employee would be eligible for gratuity only after he completes 60 months in one organisation. An organisation at its discretion can provide gratuity before completing 60 months.
Regards
Santosh:)
From India, Madras
Dear Fraind, Yes he is eligible for that, in this case we have to take 10 month as a year coz he alredy worked more than 4.5 year,according to law .
From India, New Delhi
From India, New Delhi
If you refer the act it was clearly mentioned under the head continuous service that 240 days needs to be considered if he is leaving the service in between the 5th year.
Continuous service.
For the purposes of this Act, -
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
From India, Gurgaon
Continuous service.
For the purposes of this Act, -
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
From India, Gurgaon
Dear Parvez,
In this case you have to pay gratuity for aperiod of five years. One of our Hon'ble High Court have already a judgement on this point that is an employee completed 240 days of continuous working in the fifth year then the employee become entitled to gratuity amount. Thus if the employee is eligible for gratuity by remaining in continuous servive for four years & have also done work for 240 days in fifth years i.e. in the preceding twelve months, then the employee become entitled to hve gratuity amount.This judgement seems to be on same footing as we consider in cases of I S Act,1947 for service matters.
Submitted as requested
Regards.
R.N.Khola
Sr Associate
Skylark Associates Gurgaon
From India, Delhi
In this case you have to pay gratuity for aperiod of five years. One of our Hon'ble High Court have already a judgement on this point that is an employee completed 240 days of continuous working in the fifth year then the employee become entitled to gratuity amount. Thus if the employee is eligible for gratuity by remaining in continuous servive for four years & have also done work for 240 days in fifth years i.e. in the preceding twelve months, then the employee become entitled to hve gratuity amount.This judgement seems to be on same footing as we consider in cases of I S Act,1947 for service matters.
Submitted as requested
Regards.
R.N.Khola
Sr Associate
Skylark Associates Gurgaon
From India, Delhi
Hai An employee must be completed five years of continuous service will be eligible for Gratuity. While calculating the gratuity you have to take 5 years 7 months as 6 years. MANOKAVIN
From India, Coimbatore
From India, Coimbatore
Yes,
5 years calculation base is that 240 days physical presence should be there in a year. if any one completed 4 year and 10 months and if in 10 months physical presence is 240 days, the service period will be counted as 5 years. There is also ruling of a court. i can produce.
Reards
Dinesh C. Sharma
From India, Gurgaon
5 years calculation base is that 240 days physical presence should be there in a year. if any one completed 4 year and 10 months and if in 10 months physical presence is 240 days, the service period will be counted as 5 years. There is also ruling of a court. i can produce.
Reards
Dinesh C. Sharma
From India, Gurgaon
dear
i donot agree with mr khola.if madras high court has given judgent in one case it does not mean amendment in gratuity act.applicablity clause of gratuity act is still five years.so no one is entitle for gratuity before five years of service except death cases
tks
j s malik
From India, Delhi
i donot agree with mr khola.if madras high court has given judgent in one case it does not mean amendment in gratuity act.applicablity clause of gratuity act is still five years.so no one is entitle for gratuity before five years of service except death cases
tks
j s malik
From India, Delhi
Hi guys according to my personal knowledge i have agree with Mr. Khola. Regards, SURESH - HR
From India, Nellore
From India, Nellore
For Calculating Gratuity
#last drawn monthly salary as on date is taken into account
# if total period served with the current employer is less than 5 years no gratuity is payable to any individual
# for calculation of gratuity period served at a stretch with one employer is counted
# salary includes only basic pay and dearness allowance
# only commission on salary paid on turnover basis is included
Note
Gratuity is a lump sum amount that your employer pays you when you retire or resign from the organization. An Employee does not contribute any portion of his salary towards this amount.
Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. This rule is relaxed in the last instance. In the event of your death, the gratuity will be paid to your nominee.
CASE-1 You are covered Under the Payment of Gratuity Act, 1971:
Gratuity shall be calculated as per the below formula:
Gratuity = Last drawn salary x 15/26 x No. of years of service
Your last drawn salary will comprise your basic + DA. For computation of gratuity, your service period will be rounded off to the nearest full year.
CASE-2 You are not covered Under Payment of Gratuity Act, 1971
Gratuity shall be calculated as per the below formula
Gratuity = Last drawn salary x ½ x No. of years of service
Your last drawn salary will comprise your basic + DA+ commission on sales on turnover basis. For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored. For instance, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation.
GRATUITY EXEMPTION:
Death-cum-retirement gratuity received by employees of central or state governments and local authorities is exempt without limit.
Gratuity received under the Payment of Gratuity Act, 1971 is exempt to the extent that it does not exceed 15 days' salary for every completed year of service calculated on the last drawn salary subject to a maximum of Rs 3.5 lakh.
Any other gratuity is exempt to the extent that it does not exceed one half-month salary’s for each year of completed service calculated on the basis of average salary for 10 immediately preceding months subject to a maximum of Rs 3.5 lakh.
The ceiling of Rs 3.5 lakh applies to the aggregate of gratuity received from one or more employers in the same or different years.
Hope that answers your query
Regards
Charu
From India, Delhi
#last drawn monthly salary as on date is taken into account
# if total period served with the current employer is less than 5 years no gratuity is payable to any individual
# for calculation of gratuity period served at a stretch with one employer is counted
# salary includes only basic pay and dearness allowance
# only commission on salary paid on turnover basis is included
Note
Gratuity is a lump sum amount that your employer pays you when you retire or resign from the organization. An Employee does not contribute any portion of his salary towards this amount.
Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. This rule is relaxed in the last instance. In the event of your death, the gratuity will be paid to your nominee.
CASE-1 You are covered Under the Payment of Gratuity Act, 1971:
Gratuity shall be calculated as per the below formula:
Gratuity = Last drawn salary x 15/26 x No. of years of service
Your last drawn salary will comprise your basic + DA. For computation of gratuity, your service period will be rounded off to the nearest full year.
CASE-2 You are not covered Under Payment of Gratuity Act, 1971
Gratuity shall be calculated as per the below formula
Gratuity = Last drawn salary x ½ x No. of years of service
Your last drawn salary will comprise your basic + DA+ commission on sales on turnover basis. For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored. For instance, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation.
GRATUITY EXEMPTION:
Death-cum-retirement gratuity received by employees of central or state governments and local authorities is exempt without limit.
Gratuity received under the Payment of Gratuity Act, 1971 is exempt to the extent that it does not exceed 15 days' salary for every completed year of service calculated on the last drawn salary subject to a maximum of Rs 3.5 lakh.
Any other gratuity is exempt to the extent that it does not exceed one half-month salary’s for each year of completed service calculated on the basis of average salary for 10 immediately preceding months subject to a maximum of Rs 3.5 lakh.
The ceiling of Rs 3.5 lakh applies to the aggregate of gratuity received from one or more employers in the same or different years.
Hope that answers your query
Regards
Charu
From India, Delhi
Yes Mr.Amit Anand Gera you are absolutely right. Through some reliable sources I have also got the Judgement of supreme court that If an employee has completed his 4 years and 240 days in one organization. He is eligible to get the gratuity.
Pl see the attached file for information.
regards
Parvez Pasta.
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=cGFydmV6X3Bhc3RhQHlhaG 9vLmNvLmlu[/IMG]
09275085329.
From India, Ahmadabad
Pl see the attached file for information.
regards
Parvez Pasta.
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=cGFydmV6X3Bhc3RhQHlhaG 9vLmNvLmlu[/IMG]
09275085329.
From India, Ahmadabad
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
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