Gratuity Eligibility And Payments

hitesh_with1986
Dear All,
In case of 6 years 7 Months 8 days Service take round off 7 yrs service for calculation of Gratuity ? as per general ans of past post in site. but i want to know ,
1) 240 days condition apply here after completion of 5 years service ?
2) 240 days condition apply only for the starting 5 Years only ?
3) related Section in PG Act, 1972
4) related Case in Past.
J S Malik Sir suggest your view on this matter.
Thanks,
Hitesh
abbasiti
Dear Mr. Hitesh,
Kindly see the Section 4 subsection 2 of the Gratuity act as under : -
" For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at
the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned"
Accordingly service more than 6 months will be treated as one year for gratuity calculation. 240 days per year is for the minimum eligibility (first 5 years).
Abbas.P.S
hitesh_with1986
Dear Abbasiti,
Thanks for your replay.
But I want to know,
1) If any worker work in Establishment for 15 years 8 months 10 days then as per your ans he got
16 years Gratuity. But if he/she did not attend duty (Absent) in 8 months and it Working Day
(Prs.+PH+PL) is only 98 days that case he is eligible for 16 yrs gratuity?
2) If any worker work as a seasonal worker in establishment for 15 yrs then management decided
to permanent him and he retired after 5 yrs as work as permanent then as per rules he is liable
for 20 yrs Gratuity. But how to calculate it. (7 days or 15 days.)
If possible then suggest me the case name or law section for the above matters.
Wait all senior valuable replay on this matter.
stellalauren
ADP India recently conducted webinar about gratuity.It is very informative i hope it will help you. Gratuity Webinar is available here >> CLRA Compliance: Your Responsibility as an Employer - ADP On-Demand Webinar
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