Respected seniors, What is the meaning of continuous service of 240 days. Whether 240 days includes weekly off and notified holidays or they are excluded while calculating for gratuity, EL’S
From India, Hyderabad
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1From India, Hyderabad
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240 days service is inclusive of weekly off, paid leave days, holidays declared by Company etc
From India, Aizawl
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From India, Aizawl
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In the case before the division bench of AP HC (G. Yadi Reddy v. Brook Bond India Ltd., 1994 LLR 328 (AP) (DB)), it was decided that while calculating the 240-day period, the weekly off and holidays are to be taken into consideration.
From India, Mumbai
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From India, Mumbai
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Thanks for your prompt reply. Now my question is if any employee works for 4 years and 8 months, then is he eligible for gratuity including weekly off and notified paid holidays
From India, Hyderabad
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From India, Hyderabad
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Hi, In general and as a principle it is 5 years of continuous service to be eligible for Gratuity payment as a right provided other conditions are fulfilled. Thanks and Regards
From India, Hyderabad
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From India, Hyderabad
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Considering having understood continuous services ,i.e 240 days concept, Gratuity therefore becomes eligible on completion of 4 yrs and 240 days in fifth year.
From India, Vadodara
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From India, Vadodara
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240 days includes only working days excluded week offs and notified holidays.
From India, Ghaziabad
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From India, Ghaziabad
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Dear Sumit Kumar Saxena ji, your answer is contrary to my answer given with case law. Is there any subsequent case law contrary, or is there any amendment in the law? I would be thankful if you could shed some light on it.
From India, Mumbai
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From India, Mumbai
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Dear Akil Ji, As per your reply, if any employee works for 8 months in 5 year then he is eligible for gratuity. right
From India, Hyderabad
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From India, Hyderabad
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Yes, as per the Payment of Gratuity Act (PGA), continuous service of 5 years renders eligibility for gratuity. It is further clarified that 240 days of service in a period of 12 months entitles one to gratuity for that year. Therefore, when read together, the supposition of 4 years and 8 months of continuous service suffices for eligibility for gratuity. There are supporting judgments from the High Courts of Tamil Nadu and Kerala on this matter.
From India, Mumbai
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From India, Mumbai
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For explanation to continuous service, please read section 2A of Payment of Gratuity Act, 1972 where it is clarified in details.
From India, undefined
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From India, undefined
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Continuous Service and Gratuity Calculation
240 days are inclusive of weekly offs and any holidays for regular employees, and 190 days for seasonal workers. (Maternity leave also needs to be included during the calculation.) As per Section 2A of the Payment of Gratuity Act, 1972, an employee is considered to be in continuous service regardless of interruptions due to sickness, absence, LOP, etc. (paraphrased in my own words). Don't get confused.
If an employee takes a sabbatical for more than a year or a long break exceeding a year, all these conditions will be treated as "NON-CONTINUOUS."
Regards,
Piyush
From India, Pune
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240 days are inclusive of weekly offs and any holidays for regular employees, and 190 days for seasonal workers. (Maternity leave also needs to be included during the calculation.) As per Section 2A of the Payment of Gratuity Act, 1972, an employee is considered to be in continuous service regardless of interruptions due to sickness, absence, LOP, etc. (paraphrased in my own words). Don't get confused.
If an employee takes a sabbatical for more than a year or a long break exceeding a year, all these conditions will be treated as "NON-CONTINUOUS."
Regards,
Piyush
From India, Pune
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
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(Fact Checked)-[response] Your query on continuous service calculation is important. In the context of gratuity, weekly offs and notified holidays are included in the 240-day count. (1 Acknowledge point)