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D Phani Kumar

One of our workmen joined our company in the year 1980 and retired in the year 2018. He did not work during the period 2015-18, though he was coming to duties. He was simply sitting and going back. He did not heed to the instructions of his superiors to work. The same was recorded in the log books of the respective section also.
He was not paid any wages for that period on the principle of NO WORK NO PAY. He approached the court and court also ruled in favor of the company by upholding the action of the company in not paying the wages on the principle of NO WORK NO PAY.
Now the question is-
1. Whether to pay gratuity for the period from 2015 to 2018 during which he did not work though reported to duties and was not paid any wages.
2. Whether that period is said to be a continuous service under section 2A of the payment of Gratuity Act 1972.
I request my colleagues to advice on the above queries.

From Singapore, Singapore
Agm - Hr&admin
Insolvency N Gst Professional
Nagarkar Vinayak L
Hr And Employee Relations Consultant
D Phani Kumar
General Manager- Hr
+2 Others


On the above query kindly let me know.
1. Did he get the salary slip for the year 2015-18?
2.If yes then what have you written on present days?
For more clarification do not hesitate to contact with me via phone.

From United Arab Emirates, Dubai

The whole matter can be resolved by careful reading of Sec 2A and 4 of Payment of Gratuity Act 1972.
Here with the brief facts mentioned in the query,Individual is entitled for Gratuity even for the period of No pay no work period.
When employe was reporting for work and did no work, show cause notice should have been given and disciplinary action taken.
It is my opinion that he is entitled for gratuity for the period of no work as said by company.

From India, Pune

Dear Sir, Greetings!!! Enclosed herewith some explanation circular of Food corporation of India for their employees to avoid issues. might this will solve your problem.
From India, Pune

Attached Files (Download Requires Membership)
File Type: pdf Circular No_04_2016 Payment of Gratuity to the No Work No Pay System workers under Payment of Gr.pdf (1.26 MB, 358 views)

Nagarkar Vinayak L

Dear colleague,
The company should have gone on record to convey to the worker, after the court order of upholding his absence on no work no pay basis , that his service for that period is treated as break in service and will not be counted as continuous service for the purpose of gratuity.
It would have strengthened the stand of treating that period as break in service and making it disqualification for receiving gratuity for that period.
In the absence of such record, it is disputable, to treat that period as disqualification to receive gratuity.
Vinayak Nagarkar

From India, Mumbai
Babu Alexander

I am just wondering / under what circumstances a workmen could be on rolls of the Company during the period 2015-18, though he was coming for duty, and was simply sitting idle and going back?. What was recorded in the attendance register so far? How his presence was accounted in all returns and registers under various Act / Rules?
From India, Madras

Dear colleague,
As per the information provided by you the workman is not entitled for gratuity under the condition of service break; [but is eligible as you your establishment did not terminate on ground of long absent and allowed to retire attaining the age.]
As a whole he is not eligible on ground of break in service for three years as has not put any attendance. The workman can be denied for gratuity on ground of break in service, Let the person seek shelter under court.

From India, Mumbai

Dear Mr. Kumar,
I fully agree with the views of Mr. Nathrao. The gratuity to an employee is made based on the ‘continuous service’ rendered by him. This continuity of service is calculated keeping in view the provision of Section 2A of the Payment of Gratuity Act, 1972. According to this section, an employee renders uninterrupted service even if his service is interrupted by sickness, accident, absence from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the fault of the employee.
However, an order has been passed by the management in accordance with the Standing Orders, rules or regulations governing the employee of the establishment, treating his absence as break in service, then the period covered under such order shall not be countable towards his continuous service and thus, such period shall be liable to be deducted from his total service period.
As per the facts stated by you in the opening paragraph of your query, he was liable to disciplinary action for not carrying out the work as per the directions of his superiors. Even an order of ‘No Work No Wages’ was passed against him the court. However, the management failed to issue an order in writing regarding his break in service. Therefore, his service would be countable and his gratuity would be payable to him till 2018 as per the provisions laid down in section 2A of the Payment of Gratuity Act, 1972.
Best wishes and regards.

From India, Chandigarh
Dear Sir
I have just joined a partnership firm as hr executive . The management of the firm is now want to implement gratuty for their emplyees & asked me to how to effect the same from this month. pls guide

From India, Cuttack

I fully agree with the version of Jpratap sir.
From India, Koraput
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