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We are aware that Payment of Gratuity is a welfare measure provided for the benefit of the workers/employees under Payment of Gratuity Act.

The workers who have put up continuous 5 years of service become eligible for gratuity. The gratuity is payable for 15 days for every completed year of service calculated on the last drawn salary paid. A completed year of service means that the worker has to attend his duties for a minimum period of 240 days in a Calendar year.

All the Budli workers who have put up 240 days are eligible and receiving their gratuity. All the permanent workers who have not even worked for a minimum period of 240 days are also paid gratuity.

Since the provision of the Act is not so clear to us, certain sections of permanent workers are misusing this welfare measure of the Government by not attending their duties willfully but receiving their gratuity payment.

Though the worker can get his work continuously he voluntarily absent from the duties and engage themselves in other business activities. Some permanent workers working only for 2 to 3 days in a calendar year but taking gratuity for 15 days in the year.

The Industry is incurring huge losses because of payment gratuity for 15 days in the year against the actual working of 2 to 3 days. Besides incurring the financial loss due to heavy absenteeism, production is adversely affected due to idle machinery.

Therefore, whether we can insist on the permanent workers also to register 240 working days in a calendar year to make payment of gratuity for that particular year. We sought for valuble suggestions in this regard.

T V S N Raju

Dear Friends,
I have worked 7 years in a company and I was denied gratuity by my ex employer after resigning from the job. Giving Maharashtra Civil Service following G.R. references.
Read -
1. Government Resolution No.: Senive-1009/CR.31/SER-4, dated 05th May, 2009.
2. Government Resolution No.: Senive-1009/CR.69/SER-4, dated 21st August, 2009.
I am not able to access the above GRs.
Please help me with the relevant source of information to claim my gratuity.

From India, Mumbai
There is a provision in sec 2 A of the POG Act to treat some absences without wages as break in service.You can do so by an order to such employees only if there is a provision for it in your leave rules or terms of appointment. If you do not have such a provision ,make it now.Such absences treated as break in service will not be counted as continuous service.Excluding such absences, if the number of days worked in an year is less than 240 he will not be eligible for gratuity in respect of that year.
From India, Thiruvananthapuram
Dear Mr Raju, before making Gratuity Payment to an Employee, Employer has to do due diligence with regard to the claim application.Due procedure has to be followed before approving the payment.The years in which Employee has not worked/Earned Salary for atleast 240 days, he will not be eligible for Gratuity to that year.Henceforth, follow due procedure
From India, New Delhi
Thanks for your valuable suggestions and advise.
My doubt with regard to amendment of the Gratuity Act during year 1981 which was notified during the year 1984. In the amendment, irrespective of any number of working days of the employee (not necessarily be 240 days working as per the section 2 (c)), it is the liability of the Management to pay his gratuity. How substantiate this in the court of law for argument sake. Any recent case law in this regard may be referred.
With Regards.
T V S N Raju

Dear Raju, Please note that Section-2(c) defines "Continuous Service" means continuous Service as defined in section 2A Please note that your statement that Employer is liable to pay Gratuity even if Employee has not worked for Minimum 240 days is not tenable legally & contrary to the provisions of Act.The matter should be taken up with The Controlling Authority, later on with Appellate Authority & High Court.has the controlling authority given any such directions? please share correct details about the case.
From India, New Delhi
Thank you for your suggestion. I would like to know what exactly the criteria of amendment of Gratuity Act during the year 1981 with regard to continuous service and to pay gratuity when an employee is on permanent rolls having less than 240 working days following the criteria including paid leave etc.. Please let me know.
With Best Regards
T V S N Raju.

Dear Mr Rajugaru, please go through bare Act of The Payment of Gratuity Act, 1972 together with Amendments & revert .Please also let me know the purpose of your question.
From India, New Delhi
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