Dear Friends,
Gratuity rules state that gratuity should be paid for 5 years of completion (240 days in a year). However, there are some scenarios that may cause confusion:
1. What if someone has completed 4 years (240 days), then not fully completed 1 year, and then completed another 5 years (240 days)?
2. If someone has completed 10 years (240 days), then taken a 2-year break, and then completed another 12 years (240 days).
I am slightly confused about these situations. Please help clarify.
Thanks!
From India, Vadodara
Acknowledge(0)
Amend(0)
Gratuity rules state that gratuity should be paid for 5 years of completion (240 days in a year). However, there are some scenarios that may cause confusion:
1. What if someone has completed 4 years (240 days), then not fully completed 1 year, and then completed another 5 years (240 days)?
2. If someone has completed 10 years (240 days), then taken a 2-year break, and then completed another 12 years (240 days).
I am slightly confused about these situations. Please help clarify.
Thanks!
From India, Vadodara
Acknowledge(0)Amend(0)
break in the sence what? is he was on seek leave? or suppose he was get an accident while he was on job and sick leave for same? pls mention this first
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
If break of service is not regularized, then no gratuity is payable for that particular year(s) only. In other words, if his absence for such a number of days or years was approved, then he will be eligible for gratuity, but the amount of gratuity shall be restricted to the years during which he worked for 240 days each. Again, an employee who is otherwise eligible for gratuity but during any year he worked less than 240 days due to any reason for which he was not given any charge sheet or no disciplinary action was taken against him, will be eligible for gratuity for that year also, provided he had at least worked for 190 days during that year. Needless to say, absence due to employment injury or maternity leave will be counted as days worked for the purpose of determining eligibility for gratuity.
Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4526Regards, Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Less than 5 years service - Eligibility for payment of gratuity.pdf
Gratuity calculation.doc