Gratuity - 6 days working and noms applies only to 5 days working company? - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Aniket Pathak
Sr. Executive Hr
Syammohan@sical.com
Lead - Hr Business Partner
GD Pankaj
Graphics Designer

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Sir i have completed my 4 year 10 months in a company and when i am asking to hr for my gratuity she is saying our company is 6 days working this noms applied only 5 days working company. is that right?
Dear pankaj,
Ask her to get her facts right. Also tell her that if you wont help i can always go to LO.

Dear Pankaj,
As per the ratio decidendi of the judgment of the hon'ble High Court of Madras in Mettur Beardsel Limited case, it is enough that the employee has completed 4 years and 240 days of service in the fifth year to be eligible for gratuity under the P.G Act,1972. It is not correct that the application of 5 years continuous service is dependent on no. of the working days in a week for the definition of "continuous service" u/s 2-A of the PG Act,1972 includes all the authorised leave and holidays. If it is so urgent that you should leave this job immediately, get smoothly relieved and file your claim for gratuity afterwards before the Controlling Authority under the Act.

Dear Pankaj,
Assuming that your organization is employing more than 10 employees and you have continuous employment of 4 years and 10 months in your current organization. In this case you are 100% eligible for gratuity settlement. Please refer clause 2 (a) of the payment of gratuity act, 1972 where it is briefed as 4 years and 190 days of service is required in case if the employee works for less than 6 days in a week. In all other cases, 4 years and 240 days of service will make the employee eligible for gratuity settlement. Please quote the same while having a discussion with your HR and get it convinced.
Best Regards,
Syam Mohan

Dear Syam,
Thank you for your silent correction of the mistake in my reply due to my excess of enthusiasm and inadequate cross-reference. As per Sec. 2-A(2)(a)(i) of the Payment of Gratuity Act,1972 an employee would be deemed to be in continuous service for a period of one year in respect of an establishment that works for less than 6 days a week, if he has actually worked for not less than 190 days during the 12 calendar months preceding the date on which gratuity is to be calculated.
However, it only strengthens the poster's entitlement of to gratuity.

Dear Sir,
I am really grateful to a senior professional like you for your encouragement / appreciation. Also, I am making use of this occasion to express my sincere thanks for sharing your valuable experience and knowledge by responding to the various posts/queries from others.

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