Eligibility for Gratuity Under the Payment of Gratuity Act
The Payment of Gratuity Act states that a minimum of 5 years of service is required to become eligible for gratuity. It also defines Continuous Service as requiring 240 days of service in a year, including leave taken due to sickness, to be considered as 1 year.
I would like to seek clarification on whether an employee who has completed 4 years, 6 months, and 13 days of service will be eligible for gratuity. This scenario assumes the employee works a 5-day week with two days off. I kindly request all of you to provide your expert opinions on this matter from a legal perspective and in accordance with the Payment of Gratuity Act.
From India, Thane
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The Payment of Gratuity Act states that a minimum of 5 years of service is required to become eligible for gratuity. It also defines Continuous Service as requiring 240 days of service in a year, including leave taken due to sickness, to be considered as 1 year.
I would like to seek clarification on whether an employee who has completed 4 years, 6 months, and 13 days of service will be eligible for gratuity. This scenario assumes the employee works a 5-day week with two days off. I kindly request all of you to provide your expert opinions on this matter from a legal perspective and in accordance with the Payment of Gratuity Act.
From India, Thane
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Dear Sumeet, this has been an oft-repeated and oft-answered question. However, it is quite unfortunate that certain employers still refuse to understand the binding nature of a High Court's verdict on a question of law arising out of a Central legislation, particularly in the conspicuous absence of a contrary judgment by any other High Court or the Supreme Court. As per Sec.2-A(2)(a)(i) of the PG Act, 1972, completion of 190 days' service in an establishment that works for less than 6 days a week shall be treated as continuous service in a period of the preceding 12 months. In the case cited in your post, the employee is entitled to gratuity for a period of 5 years as he has completed 4 years and 193 days in the 5th year.
From India, Salem
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6108From India, Salem
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc