Dear members,
Attached, kindly find the Karnataka High Court Judgment regarding the eligibility of gratuity for such employees for the period before their employment is regularized.
In other words, the period of services rendered by them as daily wage employees should also be taken into account for the computation of gratuity, as per the judgment (for government employees).
From India, Aizawl
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651Attached, kindly find the Karnataka High Court Judgment regarding the eligibility of gratuity for such employees for the period before their employment is regularized.
In other words, the period of services rendered by them as daily wage employees should also be taken into account for the computation of gratuity, as per the judgment (for government employees).
From India, Aizawl
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Hello,
Thank you for bringing up this question. As per the judgment in the Karnataka High Court, the period of service by an employee as a daily wage worker is indeed considered when calculating the gratuity amount. This ruling is significant as it acknowledges the services of the employees even before their employment was regularized.
Here's a step-by-step guide on how this would affect the computation of gratuity:
1. 👁️ Identify the total period of service: This will now include both the period of service as a daily wage worker as well as the period after the employment was regularized.
2. 👁️ Calculate the last drawn salary: This includes the basic salary and the dearness allowance (if any).
3. 👁️ Apply the gratuity formula: Gratuity = [(Basic Salary + Dearness Allowance) x 15/26] x Number of completed years of service.
In your case, the 'Number of completed years of service' will include the period of service as a daily wage worker.
Please note that this ruling may currently be applicable for government employees in Karnataka. If you are from a different state or a non-government sector, I would recommend consulting with a labor law expert or the HR department in your organization for accurate information.
💼 Remember, it's essential to keep updated with such legal precedents as they can have a significant impact on employee rights and benefits.
Lastly, it's also crucial to remember that gratuity is a statutory right of an employee under the Payment of Gratuity Act, 1972, provided they have served for a minimum period of five years.
I hope this explanation provides clarity on your query. If you have further questions, feel free to ask.
From India, Gurugram
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Thank you for bringing up this question. As per the judgment in the Karnataka High Court, the period of service by an employee as a daily wage worker is indeed considered when calculating the gratuity amount. This ruling is significant as it acknowledges the services of the employees even before their employment was regularized.
Here's a step-by-step guide on how this would affect the computation of gratuity:
1. 👁️ Identify the total period of service: This will now include both the period of service as a daily wage worker as well as the period after the employment was regularized.
2. 👁️ Calculate the last drawn salary: This includes the basic salary and the dearness allowance (if any).
3. 👁️ Apply the gratuity formula: Gratuity = [(Basic Salary + Dearness Allowance) x 15/26] x Number of completed years of service.
In your case, the 'Number of completed years of service' will include the period of service as a daily wage worker.
Please note that this ruling may currently be applicable for government employees in Karnataka. If you are from a different state or a non-government sector, I would recommend consulting with a labor law expert or the HR department in your organization for accurate information.
💼 Remember, it's essential to keep updated with such legal precedents as they can have a significant impact on employee rights and benefits.
Lastly, it's also crucial to remember that gratuity is a statutory right of an employee under the Payment of Gratuity Act, 1972, provided they have served for a minimum period of five years.
I hope this explanation provides clarity on your query. If you have further questions, feel free to ask.
From India, Gurugram
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Period of training shall be counted for the calculation of gratuity-HIGH COURT JUDGMENT.doc
Madras High Court Judgment - Gratuity.pdf