Dear Colleague,
Here is how to calculate the number of days for gratuity: Any employee who has completed 4 years and 240 days in the 5th year is entitled to gratuity at the rate of 15 days' salary for each completed year, upon leaving the service due to resignation or retirement. However, in cases of disablement or death, the condition of 4 years and 240 days does not apply, and gratuity is to be paid for every completed year.
Provisions of the Payment of Gratuity Act, 1972
According to the provisions of the Payment of Gratuity Act, 1972, Section 2A addresses continuous service. It defines continuous service as follows:
1. An employee is considered to be in continuous service if they have been in uninterrupted service for a specified period. This includes periods of interruption due to various reasons such as sickness, accident, leave, absence without leave, layoff, strike, lock-out, or cessation of work not caused by the employee.
2. For employees not in continuous service, they are deemed to be in continuous service under the employer for a specific period based on their actual workdays within the preceding calendar months.
These provisions aim to ensure that employees receive gratuity based on their years of service and adherence to the specified work period criteria.
Please refer to the complete text for detailed information and understanding.
Thank you.