Labour Law & Hr Consultant
Industrial Relations And Labour Laws
Korgaonkar K A
Prashant B Ingawale
In the context of the Payment of Gratuity Act,1972, break in service refers to the period during which the continuity of the service of an employee stands snapped while still the contract of employment between the employer and the employee subsists. In other words, any period of interruptions in service other than those deemed to be non-interruptions u/s 2-A of the Act is a break in service of the employee for the purpose of gratuity.
Every establishment falling within the ambit of Sec.1(3) of the PGAct,1972 has to follow it irrespective of its sectoral classification.
26th October 2017 From India, Salem
While appreciating the reply by Umakanthan Sir to your query, I would just like to add as under.
The definition of 'Continuous Service' was introduced by insertion of an independent section 2-A by way of an amendment 1984 (effected from 1981) which was following the H'ble SC judgement in Lalappa Lingappa (1981 I LLJ 308) wherein it has been held (1) that the permanent employees were not entitled to payment of Gratuity for the years they remained absent without leave and had actually worked for less than 240 days in a year and (2) that the badli employees were not covered by substantive part but come with in the then existing explanation 'I' and therefore not entitled to payment of Gratuity for the badli period i.e. in respect of years in which no work was allotted to them due to their failure to report to duty. To ameliorate the hardship arising out of the ruling of H'ble SC and confer the right of payment of Gratuity to badli workers and others who work for 240 days or more in a year / years, the Parliament re-enacted the definition of 'Continuous Service' vide independent section 2-A.
26th October 2017 From India, Mumbai
Madhu T K
27th October 2017 From India, Kannur
With regard to above topics, just need your thoughts in below.
I had worked for ABC company for one year and resigned and joined XYZ company and again come back worked with ABC company for four years. Now I have worked for total five years am I entitle for gratuity or not.
1st November 2017 From India, New Delhi
Madhu T K
1st November 2017 From India, Kannur