How Do You Handle Gratuity for Employees with Less Than 240 Days of Service?

Dear Folks,

What is the procedure if an employee has not completed 240 days (continuous service) in a calendar year? In such cases, the employee is not eligible for gratuity for that particular year.

Is there a specific procedure to inform the employee or the relevant authorities about the situation where the employee has worked less than 240 days?

Understanding the 240 Days Rule for Employee Service

240 days is the minimum number of pay days (including working days, weekly offs, paid holidays, and paid leaves). If an employee does not work for 240 days due to absence without pay, that absence should be notified to them as breaks in service. Otherwise, it may be assumed that their service has been regularized, and in such a scenario, you will fail to qualify this period as interrupted service. Therefore, to be on the safer side, it is advisable to take action against employees who take unauthorized leaves.

Dear Madhu Sir,

You mentioned "break in service" needs to be communicated. Are there any forms in the Kerala Gratuity Rule for this, or is a written communication enough?

Thank you.

No, there is no specific format for that. Only a loss of pay against which action has been taken will account for interrupted service. An LOP that is regularized by means of any official communication will make the service uninterrupted. When you notice an employee frequently taking LOPs, you should provide them with a letter stating that the period of absence will be considered as a break in service. This action can only be implemented through an office order.