Clarification on Gratuity Eligibility
I need clarification on gratuity for this case. An employee joined the company on 1st October 2008 and resigned, with the company relieving him from duties on 31st August 2013. The employee worked in the organization for 4 years and 11 months (Continued Service).
The company's head office is located in Mumbai, but they have established their factory in Tamilnadu. The factory is registered under the Factories Act in Tamilnadu.
Questions:
1. Is the employee eligible for gratuity or not?
2. Does the company have to follow the Tamilnadu gratuity rules or not?
3. According to the Gratuity Act, we have to consider it as continued service if an employee worked 240 days in the respective year. So why can't we consider it as continued service in the fifth year if the employee worked 240 days?
Now, the company states that as per the central gratuity rules, the employee has not completed the required years of service, so he can't be deemed eligible for gratuity as per the rules.
Note: A judgment was given by the Madras High Court: Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras High Court, 1998, as you are aware.
Kindly provide any recent judgments on this by any courts.
Regards,
MAS-Hr
I need clarification on gratuity for this case. An employee joined the company on 1st October 2008 and resigned, with the company relieving him from duties on 31st August 2013. The employee worked in the organization for 4 years and 11 months (Continued Service).
The company's head office is located in Mumbai, but they have established their factory in Tamilnadu. The factory is registered under the Factories Act in Tamilnadu.
Questions:
1. Is the employee eligible for gratuity or not?
2. Does the company have to follow the Tamilnadu gratuity rules or not?
3. According to the Gratuity Act, we have to consider it as continued service if an employee worked 240 days in the respective year. So why can't we consider it as continued service in the fifth year if the employee worked 240 days?
Now, the company states that as per the central gratuity rules, the employee has not completed the required years of service, so he can't be deemed eligible for gratuity as per the rules.
Note: A judgment was given by the Madras High Court: Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras High Court, 1998, as you are aware.
Kindly provide any recent judgments on this by any courts.
Regards,
MAS-Hr