Is He Eligible For A Gratuity Of 7 Years Or 8 Years After 8 Years Of Service?

Pooja Nagi
Dear Concerned,
I have a query on Gratuity, an employee's service in our organization is of 8 years, in the last year, his present days are less than 240 days (including Sundays) but has worked for more than 6 months. Now, please let me know that is he eligible for a gratuity of 7 years or 8 years??
Waiting for your revert
Thanks and regards
Pooja
amit_thkr86
If Working Days is Below 240 in any year,Then Gratuity will not calculate for That Particular year.
In you case,7 Years Gratuity will paid.
Madhu.T.K
In respect of daily rated employees this is okay but in respect of regular employees, you have to consider paid days also while calculating 240 days. Also if there have been loss of pay leave days you should take that also provided the LOPs are approved as leaves and are not absent without intimation for which disciplinary action has been taken against the employee.
Now, is the last year service is less than 12 months? If so, since he has worked for more than 6 months, even otherwise he should get gratuity for 8 years.
Madhu.T.K
Rajesh Kumar Dubey
Ms Pooja,
As per your details given above , go through as suggested by Mr TK,
Yet While asking, you should mention date of Joining & Date Of Leaving of particular person. Now You have doubt to pay gratuity for last year , you should also mention How U arrived that working / paid days are less than 240 days.
Give input rightly only then proper response may be taken
Thanks
varghesemathew
Mr Madhu is right.Even days of absence not ordered as break in service under sec 2A of Payment of Gratuity Act is considered as continuous service.
D.GURUMURTHY
Dear Sir,
While calculating of the gratuity payment, for a fraction of service in the last year, If the service is more than 6 months, it will be treated as one year.
As such if the service is 7 years and more than 6 months, the service for gratuity will be 8 years of service for calculation of gratuity payment.
fc.vadodara@nidrahotels.com
D Gurumurthy has rightly mentioned if any employee whose joining date to exit date is 7 years and over 6 month is treated as 8 years of service. 240 days of a year is calculated for those employees whose joining date to exit date is less than 5 years of continuous service. For example if an employee who has worked for 4 years and over 6 months but not over 240 days then the said employee is not entitled for Gratuity, as per my best knowledge.
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