SanketFresher
Hello Everyone !
i m a Fresher in This Field.
I Have One Query About Gratuity
Is there 240 Working Days Need To be Completed For Calculation OF Gratuity of That Year
OR
Is There 240 Working Days Need To be Completed In Any Preceding Years For Calculation Of Gratuity of Whole Service
Please Help Me. Getting Confused .
Thank u & Regards
SanketFresher

From India, Mumbai
sandi_joshi
42

Dear,
On behalf of your above mentioned query, would like to tell that a person who has completed continuous services of 4 yrs and 240 days, he/she is eligible to get gratuity.
If any employee did not completed 5th year but in that year he completed 240 days or above then he is eligible to get the same.

From United Arab Emirates, Dubai
SanketFresher
Thank u Sandi_Joshi
But One Of My Senior Employee Told me If Any Employee Haven't Completed 240 Working Days in Any Year Of His Service Period , Then That Year Will Not Be considered While Calculating Gratuity ?
Is That True ?

From India, Mumbai
sandi_joshi
42

Dear Gratuity is not depend on payable days, its depend on continuous service of 5 yrs and above and regarding what comes under 5 years i have explained you in earlier message.
From United Arab Emirates, Dubai
umakanthan53
6016

Dear Sanket,

On the termination of employment of the nature stipulated in Sec.4(1) of the Payment of Gratuity Act,1972, gratuity is payable for the entire length of service rendered by the concerned employee up to the date of his termination. Hence the determination of the length of service for the purpose of gratuity has to be calculated backwards or only preceding the date with reference to which calculation is to be made.

" One Year " for the purpose of calculation of gratuity means the period of 12 calendar months preceding the date of calculation and not the conventional year comprising of the 12 months from January to December or any other calendar or Financial Year in vogue.

In such a block of 12 calendar months preceding the date of calculation, to be entitled for gratuity, the employee ought to have rendered a continuous service of 240 days in that block. These 240 days do not mean a continuous stretch of working days alone but inclusive of the permissible interruptions viz., interruptions on account of (1)sickness (2)accident (3)leave (4)absence from duty without leave not treated as break in service as per the rules of the establishment (5)lay-off (6)strike (7)lock-out and (8) any other cessation of work not due to the fault of the employee.

Hope I've clarified your doubts.

From India, Salem
psdhingra
387

Hi Sanket,

First of all, you being a fresher, how you are concerned with the gratuity cases. Better clear on which position you are posted and how you are concerned with gratuity. However, instead of posting a query of academic nature, had you described some specific problem, you could well have received the well considered opinion from experienced members. About your senior colleague's statement, at first ask him what happened to the remaining 125 days out of that year in between the period of 5 years, whether that period included period of sickness, accident, leave, layoff, strike or a lock-out or cessation of work not due to any fault of the employee concerned employee, or the absented himself unauthorisedly or was suspended by management from service, etc. Several aspects have to be taken in to account, even if he has not rendered service even for 240 days in any year of the period of 5 years.

So, better read definition of "continuous service, as contained in sec.2(c) of the Payment of Gratuity Act. If still get any doubt after going through the definition, you may be welcome for getting clarification of your doubt. If your senior employee has also not gone through that definition, you may ask him also to refresh his views after going through the definition of continuous service.

From India, Delhi
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