When an employee has completed five years of continuous service with an organization, and in the sixth year, he worked for 7 months and 10 days only, as per the rules of the Gratuity Payment Act, should we round off to six years or calculate for five years?
From India, Pune
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1From India, Pune
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For any calculation regarding final settlement, we have to consider only the completed year, and rounding off will not be accepted. However, for the benefit of the ex-employee, if your rules permit, the Government will not object to your company paying any additional payment, ex-gratia, monetary benefits, or gifts.
With warm regards,
S. Bhaskar
From India, Kumbakonam
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With warm regards,
S. Bhaskar
From India, Kumbakonam
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc