Please suggest gratuity calculation for seasonal employees in case an employee worked only 5 seasons. Whether he is eligible for gratuity or not since he has not worked for the minimum 5-year period, but he worked only for 5 seasons.
Regards,
Srinivas
From India, Visakhapatnam
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6Regards,
Srinivas
From India, Visakhapatnam
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Dear Srinivas,
If an employee works in a seasonal establishment and works for 5 seasons and fulfills the statutory requirement of section 2A(3) of the Payment of Gratuity Act, 1972, then he is eligible to have gratuity from the employer at seven days' wages for each season.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
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If an employee works in a seasonal establishment and works for 5 seasons and fulfills the statutory requirement of section 2A(3) of the Payment of Gratuity Act, 1972, then he is eligible to have gratuity from the employer at seven days' wages for each season.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
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Dear Khola,
Please correct me if I am wrong. My understanding is that for seasonal employment, the eligibility remains the same, i.e., 5 years of continuous service with the employer. The difference is that for regular (non-seasonal) employment, 240 days of work (above ground) or 190 days (below ground) in a year will constitute continuous service. However, for seasonal employment, an employee who has worked at least seventy-five percent of the working days in each season will constitute continuous service.
There may be two or three seasons in a year, and even five seasons in one year. Will an employee who has worked only for five seasons in just one or two years be eligible for gratuity? I doubt.
Regards,
Madhu.T.K
From India, Kannur
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Please correct me if I am wrong. My understanding is that for seasonal employment, the eligibility remains the same, i.e., 5 years of continuous service with the employer. The difference is that for regular (non-seasonal) employment, 240 days of work (above ground) or 190 days (below ground) in a year will constitute continuous service. However, for seasonal employment, an employee who has worked at least seventy-five percent of the working days in each season will constitute continuous service.
There may be two or three seasons in a year, and even five seasons in one year. Will an employee who has worked only for five seasons in just one or two years be eligible for gratuity? I doubt.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu.T.K,
Your good self is not at all wrong in submitting your viewpoint. After examining section 2A(3) of this Act specifically with reference to the seasonal establishment, I have noticed that you have correctly stated that working for 75% of the total operational days of the season during such a period is necessary. The eligibility is to be seen in working for twelve calendar months, i.e., one year. The operational days of a seasonal establishment may be continuous or may be in different spells. It is not specified in the Act itself how many seasonal workings will be there in the year during a continuous service of one year. Eligibility is to be seen in the employment of the year, i.e., 12 calendar months.
Now, coming to the query of Mr. Srinivas, I have given my opinion considering the five seasonal workings in a five-year spell, referring to section 2A(3) of this Act. However, at the same time, I did not notice his statement of not completing five years of service. Mr. Srinivas is also requested to note this amended advice based on the points mentioned above.
Thanks for the timely intervention and for correcting me.
Regards,
R.N.Khola
From India, Delhi
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Your good self is not at all wrong in submitting your viewpoint. After examining section 2A(3) of this Act specifically with reference to the seasonal establishment, I have noticed that you have correctly stated that working for 75% of the total operational days of the season during such a period is necessary. The eligibility is to be seen in working for twelve calendar months, i.e., one year. The operational days of a seasonal establishment may be continuous or may be in different spells. It is not specified in the Act itself how many seasonal workings will be there in the year during a continuous service of one year. Eligibility is to be seen in the employment of the year, i.e., 12 calendar months.
Now, coming to the query of Mr. Srinivas, I have given my opinion considering the five seasonal workings in a five-year spell, referring to section 2A(3) of this Act. However, at the same time, I did not notice his statement of not completing five years of service. Mr. Srinivas is also requested to note this amended advice based on the points mentioned above.
Thanks for the timely intervention and for correcting me.
Regards,
R.N.Khola
From India, Delhi
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Understanding Gratuity Eligibility in India
Gratuity is a benefit provided to employees as a form of recognition for their long-term service with an organization. In India, the Payment of Gratuity Act, 1972, governs gratuity payments to eligible employees. According to this act, an employee becomes eligible for gratuity if they have completed a minimum of 5 years of continuous service with the same employer.
Gratuity Eligibility for Seasonal Employees
In the case of seasonal employees who work only during specific seasons, the 5-year continuous service requirement still applies. If an employee has not completed a continuous service period of 5 years, they would not be eligible for gratuity, even if they worked for 5 seasons.
For gratuity eligibility, the period of service must be continuous and not interrupted. Therefore, if an employee has worked for less than 5 years, even if they have worked for multiple seasons, they would not be entitled to receive gratuity from that employer.
It's important for both employers and employees to be aware of the gratuity eligibility criteria as per the law to avoid any misunderstandings or incorrect expectations. If an employee is unsure about their gratuity entitlement, they should seek advice from their employer or consult with a legal expert familiar with labor laws.
From India, Mumbai
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Gratuity is a benefit provided to employees as a form of recognition for their long-term service with an organization. In India, the Payment of Gratuity Act, 1972, governs gratuity payments to eligible employees. According to this act, an employee becomes eligible for gratuity if they have completed a minimum of 5 years of continuous service with the same employer.
Gratuity Eligibility for Seasonal Employees
In the case of seasonal employees who work only during specific seasons, the 5-year continuous service requirement still applies. If an employee has not completed a continuous service period of 5 years, they would not be eligible for gratuity, even if they worked for 5 seasons.
For gratuity eligibility, the period of service must be continuous and not interrupted. Therefore, if an employee has worked for less than 5 years, even if they have worked for multiple seasons, they would not be entitled to receive gratuity from that employer.
It's important for both employers and employees to be aware of the gratuity eligibility criteria as per the law to avoid any misunderstandings or incorrect expectations. If an employee is unsure about their gratuity entitlement, they should seek advice from their employer or consult with a legal expert familiar with labor laws.
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc
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