Industrial Relations And Labour Laws
Labour Laws & Ir
Hr - Generalist
Anitha G S
H R Manager
G K Sharma
Asst. Mgr.- Hr
Hrd-though M Still A Student
G K Sharma
14th March 2008
14th March 2008 From India, Kannur
what is a year of service under Gratuity act?.
An Year of service means, for the purpose of calculation gratuity, he should have worked for 240 days in that calendar year. For an instance an employee had worked for more 7 years and his no of days worked in each are as follows:
Assume that the total No of days per year is 303 days
1 st year: 300 days
2nd year: 255 days
3rd year: 298 days
4th year: 129 days
5th year: 310 days
6th year: 110 days
7th year : 303 days
Now the employee is eligible for five years since he has not completed 240 days which is the eigible criteria for two years. But normally 99.99% of the companies are not following this.
But application of the Act is extended to those who have completed 4 yrs and 240 days in the fifth year. For calculation purpose the gratuity is calculated in multiplicity of 6 months. That is if an employee completes 6.7 yrs the gratuity is to be calculated for 7 years.
Hope I am clear.
15th March 2008 From India, Madras
I heard that there is some other judgement against this ruling permitting those with 4 years + 6 months to get gratuity. But the intrepretation of the Act is to take 5 years from the date of joining to date of leaving.
The fraction of six months and 240 days are considered for determining the amount of gratuity. As such one who has worked for 6 years and 7 months will get gratuity for 7 years.
17th March 2008 From India, Kannur
18th March 2008 From India, Kannur
Please reply soon.
16th December 2008 From Netherlands, Amstelveen
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,
21st January 2009 From India, Hyderabad
18th November 2009 From India, Chennai
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
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.
23rd December 2009 From India, Visakhapatnam
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,
28th February 2010 From India, Kota
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
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
Please let me know if I am eligible for Graduity. I suppose I am after reading through the graduity act and the blog here.
Start Date End Date No of Days
18-Jul-05 17-Jul-06 364
18-Jul-06 17-Jul-07 364
18-Jul-07 17-Jul-08 365
18-Jul-08 17-Jul-09 364
18-Jul-09 03-Jun-10 320
8th July 2010 From India, Mumbai
My friend is working in a small scale industry for the past 10 years. They are giving wages to him on daily wages basis & the wages was settled on weekly basis. Now he want to leave from the company. Whether he is eligible for gratuity? (i.e. daily wages employees are eligible for gratuity).
17th August 2010 From India, Bangalore
I'm really not clear about the eligibilty of Gratutity from your reply.
In your earlier postings you had mentioned about a Madras high court case , wherein an employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for one year . Quoting from the judgement - "
Thus an employee who has put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of fiveyears - His claim for gratuity is tenable.
Does it not stand valid now ?
Please explain .
Thanks & Regards,
11th November 2010 From India, Bangalore
Please suggest your immediate reply. and also how to follow these problem.
10th July 2015 From India, Chennai