Industrial Relations And Labour Laws
Labour Laws & Ir
Labour & Industrial Laws
Anu Product Ltd
The amount of Gratuity is equal to 15 days salary for every completed year of service.
24th June 2009 From India, Kannur
There is no legal provision asking an employee to leave. Either employee leaves or he is sacked.
Gratuity can be forfieted only in case of discontinuation of employment as a punishment for theft, fraud, dishonesty, any behaviour amounting to moral turptitude (assault/ rape/ attempt of molestation etc).
Gratuity calculation is (Last drawn Basic+DA)/26 X 15 X No of completed years of service
Here, we need to consider service above 6 months in the last year as next complete year.
However this adjustment is subject to completion of 5 years of service.
29th June 2010 From India
In this case what is the procedure of paying gratuity?
19th July 2010 From India, Bhopal
20th July 2010 From India, Tiruchchirappalli
The employee who completes 5 years service is not only cretiria for the payment of gratuity. He should also requires to work for more than 240 days in every year and should have continuous service for 5 years. In such a case, the employee is entitle for gratuity.
When the employee commits misconduct resulting financial loss to the organisation, then only the company has rigtht to forfiet the gratuity payable to him which is equelent to the loss so caused to the organisation. Generally, in other cases, where the employee dismissed or discharged for the proved acts of misconduct like absenteeism, sleeping whilest duty and gross neglegence etc, the employer cannot forfiet the gratuity payable to such employee.
Wether the employee resigns or he was asked to resign doesnot make any difference for the payment of gratuity. If he fulfils the conditions as stated above, the gratuity is payable at the rate of 15 days average pay for each completed year of service. In the formula for payment of gratuity is = Salary last drawn %26 days X 15X number of years of service.
26th August 2010 From India, Hyderabad
27th June 2015 From India, undefined
4th July 2015 From India, Kannur
Please help me with your valuable suggestions on the following query:
One of our permanent worker is terminated for a theft case which was caught red handed and took the steal item back by the management . He was immediately show-caused with suspension. In his reply to the show-caused notice he admitted his allegation leveled on him. There was nothing financially loss to the organisation by his crime. Now, can management stopped his gratuity or deduct part of his gratuity amount as punishment after termination. Please advise.
28th November 2016 From India, Delhi
29th November 2016 From India, Kannur
I'm a contract employee in one organisation and I have completed 3 years 7 months 1 day and due to project technical issue in client location got terminated and again project allocated with gap of 10days and hired as new employee for the same organisation and same project than i completed 1 year 1 month 7 days in the same organisation, so now it would be break in service for 10days without my fault with the organisation.
Excluding my 10days break in service total employment with same organisation is 4 years 8 months 8days, Can you guys please suggest me
I'll be eligible for the gratuity or not.
8th August 2019 From India
The Act by recognizing the right of an employee to claim gratuity, leaves no discretion with an employer to make payment of gratuity dues to an employee at his own sweet will, which has to be mandatory paid, provided the Act is applicable on the concerned employer. Any failure to make payment of gratuity dues, is punishable with imprisonment for not less than six (6) month and which may further be extended to two (2) years.
According to Section 4 (1) of the Act, gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five (5) years on his superannuation or on his retirement or resignation or on his death or disablement due to accident or disease. Section 2-A (1) of Act defines the term 'continuous service'. The courts in India have time and again observed that the definition of 'continuous service' has to be interpreted liberally. Further, the said provision clearly indicates that cessation of work not due to any fault of the employee is not to be treated as creating any interruptions in course of continuous service. Section 2-A (2) of the Act, further stipulates that an employee shall deemed to be in continuous service for a period of one (1) year if during that period of one year he has actually worked under the employer for a period of 190 days (if the establishment works for less than six days in a week and 240 days
EMPLOYER'S RIGHT TO FORFEITURE
Section 4 (6) of the Act permits an employer to forfeit gratuity payable to an employee in the certain circumstances. As per the said provision:
✓ The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer' shall be forfeited to the extent of the damage or loss so caused;
✓ The gratuity payable to an employee may be wholly or partially forfeited (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
9th August 2019 From India