Dear Muthu,
In normal case, the gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years but sometimes problem comes on the question of as to whether an employee is required to be present on all the working days in a year. It is because of this reason that the Act has clarified under its Section 2A (Continuous service) that for the calculations of period of one year, if an employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under an employer for not less than two hundred and forty days in an establishment, which works for not less than six days in a week.In such cases an employee stand eligible for the payment of gratuity.As such you mentioned that the concerned employee has joined on 20.08.2007 and resigned on 23.06.2012, which on the face of it shows that he has completed 4 years 10 months & 3 days. Now need to calculate as to whether during the period of 10 months & 3 days, concerned employee has completed 240 days. If he confirms the same, he will surely be entitled for the payment of gratuity.
BS Kalsi
Member since Aug 2011
In normal case, the gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years but sometimes problem comes on the question of as to whether an employee is required to be present on all the working days in a year. It is because of this reason that the Act has clarified under its Section 2A (Continuous service) that for the calculations of period of one year, if an employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under an employer for not less than two hundred and forty days in an establishment, which works for not less than six days in a week.In such cases an employee stand eligible for the payment of gratuity.As such you mentioned that the concerned employee has joined on 20.08.2007 and resigned on 23.06.2012, which on the face of it shows that he has completed 4 years 10 months & 3 days. Now need to calculate as to whether during the period of 10 months & 3 days, concerned employee has completed 240 days. If he confirms the same, he will surely be entitled for the payment of gratuity.
BS Kalsi
Member since Aug 2011