Dear All, Whether we should coniser the period of suspension for gratuity calculation. Please advise. Regards Ranjeet
From India, New Delhi
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12From India, New Delhi
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Treatment of Suspension Period for Gratuity Calculation
Once the suspension is revoked, there is no relevance for the suspension period, and the difference in salary (actual salary minus subsistence allowance paid) should be paid to the employee. In that situation, we are bound to consider the period of suspension for the purpose of gratuity calculation.
On the other hand, if the employee has been terminated after being found guilty in the inquiry, then the employer will have to determine how the period of suspension should be treated. If the order is to dismiss the employee, the period during which the employee was placed under suspension will not be counted for salary and, in turn, for gratuity. However, if it is a discharge, the employee will be paid the salary due, leave encashment, gratuity, etc. In such a situation, it is open that the period of suspension shall be counted for gratuity as well.
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Madhu.T.K
From India, Kannur
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Once the suspension is revoked, there is no relevance for the suspension period, and the difference in salary (actual salary minus subsistence allowance paid) should be paid to the employee. In that situation, we are bound to consider the period of suspension for the purpose of gratuity calculation.
On the other hand, if the employee has been terminated after being found guilty in the inquiry, then the employer will have to determine how the period of suspension should be treated. If the order is to dismiss the employee, the period during which the employee was placed under suspension will not be counted for salary and, in turn, for gratuity. However, if it is a discharge, the employee will be paid the salary due, leave encashment, gratuity, etc. In such a situation, it is open that the period of suspension shall be counted for gratuity as well.
Regards,
Madhu.T.K
From India, Kannur
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