14th June 2010 From India, Delhi
Yes he is entitled for gratuity payment for all years; since he was in the continuous service as per sec. 2A.
Your doubt is pertaining to completion of 240 days in those year where he had worked less than that.
For your clarification, It is clearly given in the clause a sub section 2 of sec. 2A i.e. "if 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 240 days,he shall be deemed to be in continuous service under the employer.
In your case in the last year he has worked for 240 days; when you have to take the reference for calculation is to be made for his/her Gratuity payment.
Generally. there are two things people mixed with.
1. Eligibility of Five years- " Let an employee worked for five year in a company then to ascertain his eligibility if he has completed 240 days in the fifth year he will deemed to be eligible for Gratuity payment.
Second " if an employee worked for let 7 years, he is eligible also but in the 7th year he has worked for only 121 days in this case he will be eligible for 7 years Gratuity (Read Sec. 2A sub sec. (2) clause (b) along with Sec. 4 sub sec. 2) that clearly mentioned every completed year of service or any part in excess of six month and six month means 120 days in your case.
at last please clearly differentiate Completed year of service (it is for calculation purpose) and continuous year of service (to ascertain the eligibility)
Hope the above will suffice your query. Let me know for any doubt on it.
Mohd. Arif Khan
Manager - HR
14th June 2010
Thanks for your valuable input.
Mr. Arif Khan please correct me if I am wrong but what I am getting from your input is that,
For an employee who has worked above ground for more than five years with a single employer, (for any number of total years including first 5 yrs. may be 6, 7, 9, 12, 17 yrs or any other figure) for such an employee to get gratuity for all the years he has worked for, only the number of days he has worked in the last year of his service should be 240 days or more or last six months of his service should be 120 days or more (of course this day count will be including all days of sickness, accident, leave, absence from duty without leave etc.) irrespective of the no. of days per yr. he has worked in all the years preceding last year of his service, even if in all the years preceding his last yr. his yearly day count was less than 240 per yr.
Going by this logic only last year or last six months total days of service determine that all previous years are included in gratuity calculation of an employee.
Going by the same logic I am getting (may be I am getting wrong) that if a sincere employee who has worked for more than 5 yrs with day count of more than 240 per year, due to some problem can not complete 120 days in his last six months will not be eligible for Gratuity at all for all the previous years also. I have Read Sec. 2A sub sec. (2) clause (b) along with Sec. 4 sub sec. 2 and I am getting the same above understanding. Please put me on the right track if I am getting it wrong.
14th June 2010 From India, Mumbai
I feel quite a number of members need Complete Gratuity Guide in easy to understand language with interpretations & examples on sections & sub. sections etc. of P. G. Act, but I have observed in so many threads, that instead of providing a Proper Gratuity Guide or a Link to Some Detailed Easy to understand Gratuity Guide, members have attached "Payment of Gratuity Act" which is a technical document and not at all easy to understand for a person who is not from legal field.
In fact so many members come to this Site (Bulletin Board) who are not HR Professionals, they come here for want of correct first hand information from HR professionals, in fact in the real world so many times correct information is purposely hidden due to vested interests, but if the learned/mature seniors & members here tell information seeker to only to refer to a particular Act in reply to his query, and if ones doubts are not cleared, then the whole purpose of this forum is lost. This platform must not be used only for information sharing between HR professionals but to enlighten members from other fields as well. This precisely should & must be the reason for formation of such platforms. HR Professionals please take this as an advice & not as an offence.
So many members are still in need of Complete Gratuity Guide in easy to understand language. Any takers?
Thanks & Regards,
15th June 2010 From India, Mumbai