shekar211177
Dear Members,
My wife will be completing 5 years in a company on 10th July 2011. I have a few queries regarding her gratuity.
1. she had taken maternity leave from 4.05.2010 to 17 July 2010. further she extended her leave till 30th November 2010.
2. she was paid salary for 12 weeks period and the rest of the months was leave without pay.
now the company is telling she has to work for all the leave's taken including CL, EL, maternity leave and leave without pay taken during her term of employment and only then she is eligible for gratuity. is this the law.
Any feedback would be of great help. kindly help me.
Warm regards
Chandra shekar

From India, Bangalore
Milap123
1

Dear Shekhar,
if she is working upto July'11 (completing five years), she will be eligible for Gratuity as per payment of Gratuity Act. In the Gratuity Act, there is no provision for working against the leave taken.
With Best Wishes,

From India, Vadodara
kprasoon
173

Leave with wages is considered as days worked. Leave without wages can be considered as a break in service. Company can not ask her to work for all the leaves taken but they may ask her to work for the numbers days which are leave without wages to complete 5 years of service.
regards,
Kamal

From India, Pune
shekar211177
dear kamal,
Thanks for the info, but does she need to work for 4 more months or just the differential for mandatory 240 days working. because if its mandatory 240 days she would have worked for 239 days already in the calendar year. also i would like to tell you that the company forfeited her earned leave saying they cannot grant both together.
your input would be very helpfull

From India, Bangalore
kprasoon
173

An employee is eligible for payment of gratuity after completion of 5 years of continuous service.
There are high court rulings where the court has ruled that , if the employee has completed 4 years of services and worked 240 days in the 5th year, he/she will be eligible for gratuity.
But unfortunately till today The Payment of Gratuity Act, 1972 has not been amended in this regard. It is possible that company may ask her to complete 5 years of service by working the number of days left in completing full 5 years.
EL has nothing to do with gratuity. Gratuity and EL encashment can be given together.
reagards,
Kamal

From India, Pune
kprasoon
173

i dont remember exactly but there is also a Supreme Court ruling that "an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service".
you can refer these judgements of the court to the company regarding the definition of 5 years continuous service.

From India, Pune
sethupathy-s
65

Dear All. Kamal’s views are correct. I am adding the judgment for your reference S.Sethupathy, Erode.
From India, Selam
Attached Files (Download Requires Membership)
File Type: pdf Gratuity - Madras HC judg1 .pdf (1.55 MB, 102 views)

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