In continuation to above discussion, I have query.
(1) If an employee has worked for 10 years but has not completed services of 240 days in any year, then whether he is eligible to get gratuity. If yes, please quote under which proviso of the Act and any supporting citation, if any.
(2) Can we pay gratuity every month under CTC? Is it legal? Because reading the sections of the Act, there is no such proviso. Also there is a risk as if an employee quits the job after 3/4 year, then technically he is not entitled for gratuity. So my query is can we dilute our liability of gratuity by making monthly payment of the same.
Please give your expert opinion, suggestion and views on the above.
Thanks in advance,
From India, Bhopal
Please section 2(c) of the Payment of Gratuity Act. This contains the answer to your query. Before deciding whether the employee is entitled to gratuity or not I would request you to furnish the following information for every year
1. Number of days the employee had actually worked.
2. Number of days the employee did not work due to sickness
3. Number of days the employee did not work due to accident
4. Number of days the employee did not work due to leave
5. Number of days the employee did not work due to lay-off
6. Number of days the employee did not work due to strike or lock out which was not due to his fault.
7. In all the cases referred to from serial number 2 to serial number 6 did the employer pass an order in writing informing the employee that the absence due to sickness etc., would constitute a break in service for computing the continuous service.
If you furnish the above information I may be able to give my views.
From India, Madras
From India, Coimbatore
You have an option to approach LIC of India for your gratuity claim, this claim is required to be executed and presented through your last employer. As such you have already completed 4 years and have completed 240 days in the fifth year, hence you are eligible for gratuity. Go ahead and claim your gratuity. Good luck to you.
R B Yadav
From India, Mumbai
Thanks for your guidance. I have recieved gratutity from my employer thro LIC though I have completed 4 years and 10 months. LIC Chennai region has been sanctioning already and now LIC Mumbai region is also started processing such cases.
Thanks to HR Site team
From India, Coimbatore
From India, Surat