Dear Mr. J. S. Malik,
Sir,
Under The Payment of Gartuity Act-1972, U/s 4, Gratuity shall be payable to an employee on the termination of employment after he has redered CONTINUOUS SERVICE for not less than five years.
Now here I would like to mention the definition of continuous year of Service.
Under Section 2A, An employee is said to be in continuous service for a period of one year if employee during the period of twelve calender months preceding the date with reference to which calculation is to be made has actually worked under the employer for not less than 240 days. or 190 days for seasonal or mine estblishment.
Therefore if an employee worked for 4 years and in the fifth year if he has rendered services at least for 240 days, he will be deemed as he has rendered continuous service of 5 years. and Gratuity shall be payable.
More over.
Gratuity amount is 15 days average last drawn wages for every completed year of service (under section 2 (b), Completed year of service means continuous year of service) or part there of in excess of six month.
Again the definition of six month:- An employee is said to rendered six month service if he has actually worked for 120 days in the last six months.
E.g. Say an employee worked for five year & six months, in this case he will be entiteled for six year gratuity, not for only 5 years. (See Section 4 (2), of The payment of Gratuity Act 1972.)
Any suggestion will be highly solicited.
Thanks
Mohd. Arif Khan