Gratuity - Gratuity Calculation - CiteHR
Rameshbg_1955@yahoo.com
Retired Chief - Ir
Nathrao
Insolvency N Gst Professional
Riteshmaity
Labour Law Advocate
Psmoholkar
Labour Laws
+1 Other

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi,
We have an exiting employee who has served the organization for 4 years and 6 months, he has brought a paper from some lawyer giving calculation about gratuity of 190 days per year in place of 240 days. Ours is the organization which works on alternate Saturday off model. Can somebody please guide if he is eligible for gratuity or not and how many days to be taken into consideration for calculation of gratuity; 240 days or 190 days. In case any verdict or court order, you may like to share.
I look forward to your help.
Regards,
Manoj Kumar Anand
anand.manoj.kumar@gmail.com

Bare act reads as follows-relevant portion:

1[2A. Continuous service.—For the purposes of this Act,—

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order 2[***] treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer—

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than—

(i) one hundred and ninety days, in the case of any employee employed below the ground in a mine or in an establish-ment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

The present case may not meet the requirement as you are working 6 days a week on alternate weeks.

Consult your company legal advisor.

Though the Act is welfare oriented and beneficial application is to be done,this will become precedent for other workers etc.

A person is eligible for gratuity only after having 5 years of continuous service in a company, according to Gratuity Act. Again 190 days is not applicable in this case.
Earlier, eligibility for calculation of gratuity was done only after an employee completes 5 years of service. In a recent judgement (I do not remember the case details), it has been clarified that any employee who has worked for 4 years and in the 5 year of service has worked for the minimum number of days stipulated in the act for considering as continuous service viz. 240 days and 190 days as detailed by Mr.Nathrao, it has to be deemed as 5 years of service and will be entitled for gratuity. If you are not a mining company, 240 days only has be considered.
bgramesh, hosur

Gratuity is payable to a person who has worked for five years or more. And he needs to work for at least 240 days in each year.
Hi, If you work only on alternate saturdays, then technically you work less than 6 days a week. Regards, Amod.
As per the settled Law, if an employee has completed 240 days of continuous service in the fifth year, he shall be eligible fro Gratuity.
Mr.Manoj Kumar as per Gratuity Act employee has to render continuous 5 years service for availing gratuity benefit, but Madras High Court in W.P No-2135 of 1987 decided on 12.06.1996 said that An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year as stipulated by section 2A of the Act -Thus an employee who has Put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of five years -His claim for gratuity is tenable.
Regards,
Somesh.L
Sr.Officer HR
Gem Sugars Ltd
9731371767

one has to work for 240 days in the year not 190 days for getting Gratuity.Even after completing 5 years service also Gratuity will be paid for the years, in which he works for 240 days.
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™