Re: Gratuity For An Employee - Pdf Download

I have reproduced the definition of continuous service below. It is self explanatory.

It is clear that if an employee has worked for a continuous period 240 days in a year, he would be deemed to have worked for one year.

Vasant Nair

Section: 2A

Continuous service.

For the purposes of this Act, -

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

Yes, Supreme court has given judgement in one case that if u have completed 240 days in fifth year u are eligible for gratuity... but the gratuity act does not say this nor is it amended and therefore 5 years of continous service is required for gratuity.
Only amendment in the Act can change the eligibility for the Gratuity.

Deal All Hello.
I am fully agree with Mr.Nair.bcoz according to act any person who has served 240days in every year for continuous 5 years then he/she is eligible for GRATUITY. Now the mater is 5th year. Then i would like to inform you that in 5th year a person has completed 6month of his service in 5th year will not be consider as a complete year. after completion of 5 year of his service of he / she has left his job after 6 month in 6-7 or so on years then that year will count as a complete year.
I would like to say that if your employee has completed 240 days in 5th year then only he would be eligible for Gratuity.
Regards
Suman

The employer denied gratuity for not completing 5 years of cont service. I had served 4 years 11 months.

Make out a representation and give it to the HR person and request him to re-consider your case for payment of Gratuity.
Maybe the New Year may bring in good luck!!
Cheers
Vasant Nair

Dear Suman,
A small correction. In the fifth year the employee must have complete 240 days, only then would he be entitled to payment of Gratuity.
It is only AFTER one qualifies the five year term to be entitled to Gratuity that "six months or more" factor will be applied ONLY for purposes of calculation for payment of Gratuity.
Example:
If an employee, as you have suggested, leaves after working for 4 years and seven months. He is not entitled to receive Gratuity.
However, if an employee leave the organization after completing service of 5 years and, say, 7 months, yes he/she will be entitled to receive Gratuiy calculated for 6 years.
Trust you are clear about this now.
Cheers!!!
Vasant Nair

Hi Kirti,
Six months & + is rounded up to one year but he need to serve 5 years of continuous service.

Hello
5 years of service is mandatory to claim the gratuity. but any period above six months is rounded off to one year .See section 4 of the act :_
Section: 4
so need to senior's guidance
thanx regards
rajvir singh
p.o
__________________

Hello Mr. Suresh Deshpande,
can you help me with how to implement different HR-activities in a newly established co.?

Hai Kirti
After completing five years only above six month is rounded off to one year.
Mano Kavin