Sir, I have completed my 4 years and 10 months in a company. When I ask HR for my gratuity, she says that our company operates on a 6-day workweek, and this rule applies to 5-day working companies only. Is that correct?
From India, New Delhi
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1From India, New Delhi
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Dear Pankaj,
As per the ratio decidendi of the judgment of the honorable High Court of Madras in the Mettur Beardsel Limited case, it is sufficient that the employee has completed 4 years and 240 days of service in the fifth year to be eligible for gratuity under the P.G. Act, 1972. It is incorrect to state that the application of 5 years of continuous service is dependent on the number of working days in a week, as the definition of "continuous service" under section 2-A of the PG Act, 1972 includes all authorized leave and holidays. If it is urgent that you should leave this job immediately, ensure a smooth relief and file your claim for gratuity afterward before the Controlling Authority under the Act.
From India, Salem
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As per the ratio decidendi of the judgment of the honorable High Court of Madras in the Mettur Beardsel Limited case, it is sufficient that the employee has completed 4 years and 240 days of service in the fifth year to be eligible for gratuity under the P.G. Act, 1972. It is incorrect to state that the application of 5 years of continuous service is dependent on the number of working days in a week, as the definition of "continuous service" under section 2-A of the PG Act, 1972 includes all authorized leave and holidays. If it is urgent that you should leave this job immediately, ensure a smooth relief and file your claim for gratuity afterward before the Controlling Authority under the Act.
From India, Salem
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Assuming that your organization employs more than 10 employees and you have had continuous employment for 4 years and 10 months in your current organization, you are 100% eligible for gratuity settlement. Please refer to clause 2 (a) of the Payment of Gratuity Act, 1972, where it is stated that 4 years and 190 days of service are required if the employee works for less than 6 days in a week. In all other cases, 4 years and 240 days of service will make the employee eligible for gratuity settlement. Please mention this information during your discussion with your HR and ensure their understanding.
Best Regards,
Syam Mohan
From India, Bengaluru
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Best Regards,
Syam Mohan
From India, Bengaluru
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Thank you for silently correcting the mistake in my reply due to my excess of enthusiasm and inadequate cross-reference. As per Sec. 2-A(2)(a)(i) of the Payment of Gratuity Act, 1972, an employee would be deemed to be in continuous service for a period of one year in respect of an establishment that works for less than 6 days a week if he has actually worked for not less than 190 days during the 12 calendar months preceding the date on which gratuity is to be calculated. However, it only strengthens the poster's entitlement to gratuity.
From India, Salem
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From India, Salem
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Research Paper on 240 days-Qualifying period for gratuity under Payment of Gratuity Act.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc