Hello sir, I have joined an educational institute on 1st July 2015, and 31st March 2020 will be my Last Working Day (LWD).
1) Am I eligible for gratuity? Our HR is saying that 365 days are a must in each year.
2) Is it 240 days or 240 working days (excluding Sunday and holidays) in the 5th year.
From India, Indore
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1) Am I eligible for gratuity? Our HR is saying that 365 days are a must in each year.
2) Is it 240 days or 240 working days (excluding Sunday and holidays) in the 5th year.
From India, Indore
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I am of the view that the HR of the educational institution fails to have the correct interpretation of the term "continuous service" as defined under section 2-A of the Payment of Gratuity Act, 1972, for reasons best known to himself.
From 01-07-2015 to 31-03-2020, the total length of service of the poster amounts to 4 years and 275 days. In the 5th year of his service, he has rendered continuous service of more than 240 days within the meaning of the term under section 2-A of the PG Act, 1972, as interpreted by the Madras High Court in Mettur Beardsell Ltd v. Regional Labor Commissioner (Central) [1998 LLR 1072], making him eligible to claim gratuity for the entire 5 years. A similar interpretation of the term "continuous service" under section 25-B of the Industrial Disputes Act, 1947, was already held by the honorable Supreme Court of India in Surendra Kumar Verma v. Central Govt. Industrial Tribunal [1980(4) SCC 433] and in Mohanlal v. Bharat Electronics Ltd [AIR 1981 SC 1253].
240 days comprise working days, holidays, authorized leave, etc. Therefore, the poster is entitled to gratuity under the PGA, 1972.
From India, Salem
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6108From 01-07-2015 to 31-03-2020, the total length of service of the poster amounts to 4 years and 275 days. In the 5th year of his service, he has rendered continuous service of more than 240 days within the meaning of the term under section 2-A of the PG Act, 1972, as interpreted by the Madras High Court in Mettur Beardsell Ltd v. Regional Labor Commissioner (Central) [1998 LLR 1072], making him eligible to claim gratuity for the entire 5 years. A similar interpretation of the term "continuous service" under section 25-B of the Industrial Disputes Act, 1947, was already held by the honorable Supreme Court of India in Surendra Kumar Verma v. Central Govt. Industrial Tribunal [1980(4) SCC 433] and in Mohanlal v. Bharat Electronics Ltd [AIR 1981 SC 1253].
240 days comprise working days, holidays, authorized leave, etc. Therefore, the poster is entitled to gratuity under the PGA, 1972.
From India, Salem
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc