anuradhagrewal
5

Hello, Kindly clarify my query regarding Gratuity. An employee has completed 6 years 5 months in service and has resigned. His last working day is 15 days from now.
Now he has PL leaves as per the Maharashtra S&E Act accumulated to the tune of 45 days.

The employee is now quoting Sec 4(2) of the Gratuity act 1972 and asking to adjust his 45 days post which he will be eligible for Gratuity payment for 7 years instead of 6 years.
My query is can PL adjustment be done in such a way that he can seek gratuity payment for 7 years as if we adjust PL and his notice period he would have completed 6 years 7 months. Please advise.

From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
KK!HR
Management Consultancy
+1 Other

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.



shobhit-kumar-mittal
50

Gratuity is payable at the cessation of the employment. If the termination/resignation is effective after 6 years and 6 months, then he would be entitled to gratuity for 7 years, otherwise not.

-S.K. Mittal
Industrial & Labour Lawyer
9319956443

From India, Faridabad
KK!HR
1342

Go by the saying 'You cannot have the cake and eat it too'. The employee has worked for only 6 years and 5.5 months which clearly entitles him to only 6 years continuous service. There is no provision in the Payment of Gratuity Act 1972 for deeming leave payment period to be reckonable service for calculation of Gratuity, in deed the provision in Section 2A of the Act defining Continuous Service is 'actually worked', so there is no scope for any deeming provision.
From India, Mumbai
Madhu.T.K
3763

The leave encashment cannot qualify service period. If he has 45 days PL pending he can encash it and get relieved. Otherwise he can avail that 45 days leave and join back once the leave is over and then get relieved. But whether to grant leave to an employee (that also to an employee who has resigned) is purely management prerogative. You can refuse leave but can allow encashment. If so, he will be eligible for 6 years' gratuity only.
From India, Kannur

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.







About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server