Is an Employee on Annual Leave for Two Months Still Eligible for Gratuity After 17 Years?

Dear seniors, can anybody tell me if one of our company's employees, who has completed 17 years of service but is on leave for two months every year, is liable for gratuity? Please reply soon.

Regards,
K.K. Tiwari

Please check that in all the previous years he has worked for 240 days each year. As the paid holidays are to be taken into account, a mere 8 to 9 months of work in a year easily yield 240 days. Hence, he is eligible for gratuity.

Attached File on Gratuity

Please find the attached file on gratuity.

Regards,
S. Sethupathy, Excellent HR Services, Erode.

Any employee who has completed 5 years in service with the management and/or 4 years and in the fifth year 240 days is entitled to gratuity. Now, your question is, if your employee has completed 17 years in service, you have to ensure that in all the previous years, that particular employee has worked for 240 days in each year. If he has not completed 240 days in employment/service in any year (paid holidays are to be taken into account for the purpose of calculation of 240 days), he is not entitled to any gratuity for that particular year. Hence, the employee is eligible for gratuity.

I hope the above will satisfy your query. If you want to seek any other clarification, you are most welcome.

Regards

Dear Seniors, please send me a PowerPoint presentation or material on gratuity. I require information about gratuity, such as its meaning, how to calculate it, the percentage amount, etc.

Thank you.

Eligibility for Gratuity Payment

An employee who has completed five years of continuous service is entitled to the payment of service. An employee is said to be in continuous service if he has, for that period, been in uninterrupted service, including service that is interrupted on account of sickness, accident, leave, or absence from duty without leave (not being absence for which an order treats such absence as a break in service). Therefore, it is not just paid holidays that are to be taken into reckoning.

Best Wishes,
Vasant Nair

Yes, he is entitled to receive the benefits of gratuity. As the Payment of Gratuity Act of 1965 states, an employee who has completed five years of service is eligible to receive gratuity.

We do not find any such provision in the Payment of Gratuity Act, 1972.

Regards,
R.N. Khola

Please refrain from making such misleading and confusing comments. Like Mr. Khola said, there is no provision under the ACT for that.

Regards,
Vasant Nair

Is gratuity payable in the case of the death of an employee before completing 5 years of service? If it is payable, for what period? Please help me.

Thanks.

Regards,
San-HR