Gratuity Payment
Respected seniors,
This is Ramu, working as an AM-HR in the manufacturing sector at Vijayawada. I need clarification on gratuity payment. One of our employees resigned after completing 5 years of service. Out of the 5 years of service, for 1 year, he had fewer than 240 days due to the inclusion of all authorized leaves. We have paid 4 years of gratuity payment (4 years * 15 days). Is this the correct procedure? Should we pay for 5 years of gratuity instead? We are applying the same rule for employees with more than 5 years of service as well. Kindly provide your valuable advice.
Regards,
Ramu
Respected seniors,
This is Ramu, working as an AM-HR in the manufacturing sector at Vijayawada. I need clarification on gratuity payment. One of our employees resigned after completing 5 years of service. Out of the 5 years of service, for 1 year, he had fewer than 240 days due to the inclusion of all authorized leaves. We have paid 4 years of gratuity payment (4 years * 15 days). Is this the correct procedure? Should we pay for 5 years of gratuity instead? We are applying the same rule for employees with more than 5 years of service as well. Kindly provide your valuable advice.
Regards,
Ramu