Dear Muthu,

In normal case, the gratuity is 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 (Continuous service) 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.As such you mentioned that the concerned employee has joined on 20.08.2007 and resigned on 23.06.2012, which on the face of it shows that he has completed 4 years 10 months & 3 days. Now need to calculate as to whether during the period of 10 months & 3 days, concerned employee has completed 240 days. If he confirms the same, he will surely be entitled for the payment of gratuity.



BS Kalsi

Member since Aug 2011

From India, Mumbai
Dear Muthu
the employee is very much elligible for payment of gratuity. Sich he has completed more than 240 days in the 5 th year of his service.As per sec.25 B of ID Act A workman shll be said to be in continuous service for a period of one yar if he is , for that period , in uninterrupted service , including service which may be interrupted on account of sickness or authorized leave or on accident or strike which is not illegal or a lock-out or cessation of work which is not due to any fault on the part of the work man.
Section 2-A of Payment of Gratuity Act defines "Continuous servce )of one year of service" which similar to Sec.25 B of ID Act , which given above.
here is judgment of Madras HC which held that if an employee hhas completed 240 days of continuous service during the 5 th year of his service he is eligible for payment of gratuity.

From India, Delhi
Hi all,
There is no need to see any judgments because the Act is clear that after completion of 4 years during the last year of employment if more than 240 days of continuous employment is completed it is 'deemed' that five years are completed and liability to pay gratuity arises.
Sameer Paranjape, Labour Law Consultant, Pune
9850083760

From India, Pune
Dear muthu,
As per the provision of gratuity act 1972 para 2 A if any employee completed his/her 4 year & 240 days of services then he/she will be eligible for payment of gratuity and employee completed more the 4 year & 240 days so he/she will be eligible for gratuity.

From India, Gurgaon
Dear Muthu, Pl. read para 4 and for continuity of service of read 2A (1) (2). As he completed 4 years 240 days we need to consider him as eligible for gratuity. Regards Murari
From United States, Columbus

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