Respected seniors, What is the meaning of continuous service of 240 days. Whether 240 days includes weekly off and notified holidays or they are excluded while calculating for gratuity, EL’S
Dear Subbaraodva,
In the case before the division bench of AP HC, (G.Yadi Reddy v. Brook Bond India Ltd., 1994 LLR 328 (AP) (DB)) it was decided that while calculating the 240 days period the weekly off and holidays are to be taken into consideration.
Thanks for your prompt reply. Now my question is if any employee works for 4 years and 8 months, then is he eligible for gratuity including weekly off and notified paid holidays
Hi,
In general and as a principle it is 5 years of continuous service to be eligible for Gratuity payment as a right provided other conditions are fulfilled.
Thanks and Regards
Considering having understood continuous services ,i.e 240 days concept,
Gratuity therefore becomes eligible on completion of 4 yrs and 240 days in fifth year.
Dear Sumit Kumar Saxena ji,
Your answer is contrary to my answer given with case law. Is there any subsequent case law contrary or is there any amendment in law? I will be thankful if you throw some light on it.
Yes, As per PGA, it is continuous 5 years service that renders eligibility and it is further clarified that 240 days service in a period of 12 months entitles one to gratuity for that year. So read together that supposition of 4 years and 8 months continuous service suffices for eligibility for gratuity. There is supporting judgement of Tamil Nadu and Kerala High Courts in the matter.
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