Dear All,
As per Section 4 of the Payment of Gratuity Act, 1972 provides that an employee will be entititled to gratuity on completion of continuous service of 5 years and while clarifying the 5 years complete service, Andhra Pradesh High Court had held that the minumum period for becoming eligible for payment of gratuity should not be less than 5 years. It was further clarified that the words 'or' part in excess of six months' are only meant for the purposes of computation of gratuity for the subsequent year or years to first complete 5 years. It was also held that if an employee has worked for 4 years 11 months and 10 days, he will not be eligible for gratuity for want of completion of 5 years.
Further in a subsequent case, Madras High Court while relying upon the clarification by the Supreme Court pertaining to 240 working days in one year will be deemed to be continuous service of one year, meaning thereby that there should not be complete 12 calendar months' service. Madras High Court has further held that an employee, who has put in service of 4 years 10 months and 18 days in the 5 years, will be entitled to gratuity.
PRINTED IN LABOUR LAW REPORTER IN OCTOBER - 1998.
L.C. Pal
As per Section 4 of the Payment of Gratuity Act, 1972 provides that an employee will be entititled to gratuity on completion of continuous service of 5 years and while clarifying the 5 years complete service, Andhra Pradesh High Court had held that the minumum period for becoming eligible for payment of gratuity should not be less than 5 years. It was further clarified that the words 'or' part in excess of six months' are only meant for the purposes of computation of gratuity for the subsequent year or years to first complete 5 years. It was also held that if an employee has worked for 4 years 11 months and 10 days, he will not be eligible for gratuity for want of completion of 5 years.
Further in a subsequent case, Madras High Court while relying upon the clarification by the Supreme Court pertaining to 240 working days in one year will be deemed to be continuous service of one year, meaning thereby that there should not be complete 12 calendar months' service. Madras High Court has further held that an employee, who has put in service of 4 years 10 months and 18 days in the 5 years, will be entitled to gratuity.
PRINTED IN LABOUR LAW REPORTER IN OCTOBER - 1998.
L.C. Pal