Anonymous
Hello sir, I have joined an educational institute on 1st July 2015 and 31st March 2020 will be my LWD.
1) Am i eligible for gratuity? Our HR is saying that 365 Days are must in each year.
2) Is it 240 Days or 240 working day(excluding Sunday and holiday) in 5th year.

From India, Indore
I am of the view that the HR of the Educational Institution fails to have the correct interpretation of the term "continuous service" as defined u/s 2-A of the Payment of Gratuity Act,1972 for reasons best known to himself.
(1) From 01-07-2015 to 31-03-2020, the total length of service of the poster amounts to 4 years and 275 days. In the 5th year of his service he has rendered a continuous service of more than 240 days within the meaning of the term u/s 2-A of the PG Act,1972 as interpreted by the Madras High Court in Mettur Beardsell Ltd v. Regional Labor Commissioner (Central) [ 1998 LLR 1072 ] so as to be eligible to claim gratuity for the entire 5 years.
Similar interpretation of the term "continuous service" u/s 25-B of the Industrial Disputes Act,1947 was already held by the hon'ble Supreme Court of India in Surendra Kumar Verma v. Central Govt. Industrial Tribunal [ 1980(4) SCC 433 ] and in Mohanlal v. Bharat Electronics Ltd [ AIR 1981 SC 1253 ].
(2) 240 days comprise of working days, holidays, authorised leave etc.
Therefore, the poster is entitled to gratuity under the PGA,1972.

From India, Salem

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