Madhu.T.K
Industrial Relations And Labour Laws
Pramodthakar
Taxation And Hr
Rajesh Kumar Dubey
Manager - Hr
+2 Others

Thread Started by #Anonymous

Greetings to all Seniors,
I have one query about Payment of Gratuity Act 1972, Please clarify this as soon as possible.
Are Sundays and Holidays & Weekly Off days counted for calculating 240 working days as completed year under Payment of Gratuity Act 1972?
In other ways, Whether "Sundays and weekly Off & Holiday" will be counted for calculating 240 working days to find out completed year under Payment of Gratuity Act 1972 or not to be counted?
Please suggest me. I'm looking your valuable guidance.
Thanks & Regards :
Devendra Mohan Gaur
21st September 2016 From India, Faridabad
Dear Devendra,
This is with reference to your query...
For the purpose of computing 190 days or 240 days as the case may be, the following days have to be included.
1. Sundays and Holidays for which the workmen is paid.
2. Period of Lay-off
3. Period of earn leave with the full wages.
4. Maternity Leave Period
5. Absence of temporary disablement due to Accident.
Ref: Industrial Disputes Act, 1947
Thanks.
21st September 2016 From India, Mumbai
Dear Mr. Ubaid,
Pl. brief in detail against point No. 1.
In Monthly salary structure Sundays or Weekly holidays are considered as Paid weekly off.
Wherein in Per day structure payments are made for working days. In other way, those employees are not getting paid weekly off.
In such case what is the way of consideration.
Thanks in advance
21st September 2016 From India, Pune
If these weekly off days and holidays are paid days then these days are counted for deciding the eligibility for and calculation of Gratuity. Ref: Payment of Gratuity Act. Madhu.T.K
21st September 2016 From India, Kannur
Sundays and Holidays & Weekly Off days are counted for calculating 240 working days as completed year under Payment of Gratuity Act.
21st September 2016 From India, Ahmadabad
As far I think Sundays or Weekly offs are not included for the calculation of 240 days. If these are included then why two definition have been given in Section 2a subsection 2 clause (a)(i) and (a)(ii) which reads as follows:
"(i) one hundred and ninety days, in the case of any employee employed below the ground in a mine or in an establish­ment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case"
In (i) there is no need to add this:
"or in an establishment which works for less than six days in a week."
It should have been omitted...
Regards
Dinesh Kumar
26th September 2016 From India, New Delhi
In Gratuity Act 1972 it not mentioned the calculation of Gratuity on working days. Hence w.off, paid holidays are considered while calculating days
26th September 2016 From India, New Delhi
Dear Dineshkumar 190 days are calculated for any establishment who has 5 day working in a week instead of 6 day working in a week.
27th September 2016 From India, Ahmadabad
Mr Dinesh & Saji,
From which sources you have defined 190 days as continuous services ; relevant to 05 days working in a week, Kindly confirm and mention the provisions also.
I am not getting it under ID Act or factory act
Pls Confirm.
27th September 2016 From India
Dear Mr. Dubey Kindly refer the Gratuity Act, instead of ID Act and Factory Act.
27th September 2016 From India, Ahmadabad
Dear Mr. Saji,
This is what I meant to say. If weekly off (sunday) is included then why the provision of 190 days for those who works only 5 days in a week. It should have been 240 days.
If the legislature has mentioned 190 day for those who works for 5 days, the only intention was to exclude weekly off from the calculation
Regards
Dinesh Kumar
14th February 2018 From India, New Delhi
This is relevant for daily rated employees who are paid only for the days they work.
15th February 2018 From India, Kannur
Respected Madhu Sir,
Would you please update me the following:
1. Is this mentioned any where in the law that paid sundays/weekly offs will be considered for 240 days.
2. Secondly, as you have mentioned "This is relevant for daily rated employees who are paid only for the days they work" Now, suppose in a 6 day working establishment we hire employees on daily rated then their only the working days (excluding weekly offs) will be considered for 240 days whilst in case of monthly rated employees all the days (including weekly offs) will be considered. They in this case is this not the injustice to the daily rated employees. Monthly rated employees will soon complete their 240 days in 8 months on the other hand the daily rated employees will complete their 240 days in 9 months (240/26 days).
Please explain why the legislature has been mentioned 190 day in the law for those who works for 5 days when the weekly offs are included.
Regards
Dinesh Kumar
28th February 2018 From India, New Delhi
Why do you pay wages for weekly off days? You pay because they are in your employment. Why don't you pay wages to a daily rated worker? Because he is hired for a few days and the day on which his service is not required he is not in your service. Similar is the case with days on which a person is on his authorised leave. On such days he will be paid salary. This is because he is in your service. At the same time, if he has remained leave without intimation or he has no leave to his credit due to which he has taken leave without pay, such days will be counted as days on which he is not in your service or interrupted service. On a legal strike day, the employer is bound to pay wages even though on the strike day the employee had not worked. Such day will be counted as day worked. A lay off day will be day worked because the employee is paid wages (though not 100% but 50%).
The concept of 190/ 240 has no relevance to regular workers because for them a year means 365 days. They may get salary for all the 30/31 days in every month with the exception of a few days LOP. But for a daily rated worker, the days physically present is the days counted as service. Their engagement itself is a flexibility arrangement. If you need a person to do a work which is not regular in nature, you cannot afford to employ one in your permanent rolls and keep the person on bench whenever there is no work. In such situation, you can engage workers on a daily rated basis and pay their wages on each day or for a convenience at he end of each spell. If your establishment work only for 5 days, your daily rated worker can work only for a maximum of 5 days only per week. As such he will get lesser days when compared to another worker who is engaged by an establishment which work for 6 days in a week. When it comes to terminal benefits, there should be some difference in treatment and accordingly the law has taken a stand that an establishment which work for 5 days a week should be paying its workers gratuity if they had worked for 190 days only.
Also see that 190 days principle applies to employees in mines who work below the ground. This is because working below the ground is rather difficult than working above the ground and therefore, a differential treatment has been given to them that they need to complete only 190 days to make their one year continuous.
There is no practice of taking each 190/ 240 days and putting it one after another. Therefore, completing the 190/240 days in 8 months or 9 months is immaterial. We have to take the date of leaving service first, then take the days backward and ensure that in each year whether the employee has worked for 240/190 days in each year of 12 months.
28th February 2018 From India, Kannur
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