e.g A is working for 10 years in a co, under the pay roll of B, C & D. His last employer is D and under D's payroll he is working for 3 years. A has decided to leave the job and requested to pay all his outstanding including gratuity. Now, question is who will pay the gratuty and how?
It is true that the Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years but sometimes problem comes on the question of as to whether an employee is required to be present on all the working days in a year. It is because of this reason that the Act has clarified under its Section 2A that for the calculations of period of one year, if an employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under an employer for not less than two hundred and forty days in an establishment, which works for not less than six days in a week.In such cases an employee stand eligible for the payment of gratuity.
Member since Aug 2011