Queries
Hi Friend of mine has drawn Indian salary for 4 years 8 months and 3 years singapore salary through samecomany.Is he eligible for Gratuity?
19th January 2009 From India, Madras

Hi Friend of mine has drawn Indian salary for 4 years 8 months and 3 years singapore salary through same company.Is he eligible for Gratuity?
19th January 2009 From India, Madras
Dear All,

I too have 2 queries related to Gratuity calculation

1. One of my friend has worked in XXX organization for about 4 years and joined in some other organization for 5 months and again joined back the same company after 5 months. Is he eligible for Gratuity as he has worked before in the same company?

2. How Gratuity is calculated as per montly calculations? I have a great confusion that it is 4.83% or 4.81% or any other calculation.

Pls some of you clarify this.

Apart from this I have 1 more query about Union formation though this is some other topic, i want your suggestions pls. one of our factories is in this problem. Now all the factory workers are formed as a union and they have given a demand notice to the management in written and gave 1 week time, otherwise they said they do strike. now the 1 week time is almost over. can anyone tell me actually what process anyone has to follow in this situation what i mean is that workers has to file this even in acl office or they can approach directly and do strike or what is the actual procedure?

Pls guys some one help me i am in total confusion. Awaiting for your valuable responses.

Thanks & Regards,
Vijaya
21st January 2009 From India, Hyderabad
If a person at the time of leaving organisation has just completed 5 yrs. and 6mnths will he be eligible for 6 yrs. or 5 yrs. gratuity ? As for example Arun joined in XYZ company in 1st April 2004 , his last day in the organisation is 30th September 2009. But he has worked more than 120 days from march 2009 to sep 2009.
18th November 2009 From India, Chennai
Hi All, I have a question. I want to know that if a person dies and at the time of death he has completed 4 years and 240 days then will he be eligible for Gratuity? Sonali N Kapoor
23rd December 2009
Dear Vijaya,
1. Ur friend will not be eligible for gratuity as there was a break in his period of service.
2. Gratuity is not calculated on monthly basis ut we calculate at at the time of superannuation of any employee after the completion of 5 yrs. The formula is:-
Basic+DA (Generally an Average of last 10 months is taken)*15*no. of yrs. worked/26
Sonali N Kapoor
23rd December 2009
Hi Vijaya

1. The workmen who form into a Union, they got to get registered with the ACL Office.
2. When any demand is submitted to the Management, they have produce a copy of the Charter of demands to the ACL Office too.
3. The Trade Union had to submit minimum 14 days of strike Notice to the management, stating that if their demands are not settled with in 14 days, they would go on strike.
4. The management should at first have a discussion on the charter of demands raised by the trade union, with its Union Leaders, and come out with a amicable solution and draft out a Bilateral agreements and submit a copy to the ACL Office.
5. If the demands are not settled the Union can approach for ACL involvement for settlement. ACL would call on the Union Leaders and the Management representatives for a discussion on the issues raised and their could be a TRIPARTITE AGREEMENT.
6. The Trade Union can not go for any strike before 14 days of notice served with the management, then it is a illegal strike.

It is always better to sought out the issues bilaterally with out intervention of the ACL, to have better understanding and relations with the workmen.

Mohan Rao
Manager HR
23rd December 2009 From India, Visakhapatnam
Warm Greetings to HR fraternity..
Mr.Madhur is abs. right..
Gratuity Act itself explains that it should be granted only after 5 YoS. The clause of 240days is way to overcome some issues in case of fatal accident/death of an employee. Pl avoid to take advantage of a subway.
Thanks & Regards,
"Vishal Saxena"
28th February 2010 From India, Kota
Dear Mr.Madhu,
Thanks for the post ,its a big valid point regarding gratuity inclusion in ctc,it is a cheating which should be avoided.I am doing MBA in HR as well as Masters of labour law,such kind of discussions are really helpful for Freshers ...& i Believe point made by mike 1957,is logically correct...
28th February 2010 From India, Pune
My wife worked in a MNC as Tech. Support Exec. from 02, Feb 2004 till 05 Sept 2008 which makes it 4 years 7 months n 3 days. She worked for 5 days a week (2 days off per week). She did not take any leave without pay. All her leaves were either sick or planned leave. Is she eligible for Gratuity? As per my calculation:
total days from 02/02/2004 - 05/09/2008 = 1645 days.
Total no of off days (2 off days per week) between the working period is 468
so 1645 - 468 = 1177 days worked.
Is she eligible for Gratuity?
If so then how do we go about it. Please help.
30th June 2010 From India, Bangalore

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