Gratuity Confusion: How to Determine the Joining Date for Salary Adjustments?

Dear Members, An employee joined us a year ago on a consolidated salary. Upon her confirmation, her salary was adjusted according to the scale, including basic pay, dearness allowance (DA), house rent allowance (HRA), etc. When calculating her gratuity, what should be considered as her date of joining?

Normally, the method of payment of salary cannot be a decisive factor in determining one's employment status. In the given case, the service rendered by the employee on a consolidated salary has actually led to his confirmation. Therefore, his service should be reckoned for employment purposes, including gratuity, from the date of his actual joining in the service.

Eligibility for Gratuity Calculation

Good query. Although she is on a consolidated salary, she has worked for a year. You have issued an appointment order and an ID card as a company employee. Attendance has been taken, and leaves granted, as usual for a regular employee. What is the hesitation in adding one year of service to the gratuity calculation in this case?

All contract labor employees are also eligible for gratuity. In this scenario, what fault lies with an employee on a consolidated salary?

Please note that if any unfortunate incidents occurred during the one-year period of drawing a consolidated salary, the company is inevitably responsible to pay compensation as per the post scale under the Employees Compensation Act.

In the event of any disputes arising during this one-year temporary period, such as termination or harassment of women, all disputes should be handled as with a regular employee. Therefore, proceed with adding her service for the calculation of the gratuity period.

If she challenges the omission of gratuity calculation, it should be added as per the law of the land. Avoid inviting unnecessary troubles.