Hello Team CiteHR, Good evening. One of our employees resigned (24-hour resignation) by email on 5th June 2024, but actually, his last day was 24th May 2024. He worked from 16/08/2019 to 24/05/2024 in our hospital. My question is whether he is eligible for gratuity as per the Gratuity Act. Please guide me.
Thanks.
Sunita
Sr. Executive - HR.
From India, Delhi
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Thanks.
Sunita
Sr. Executive - HR.
From India, Delhi
Acknowledge(0)Amend(0)
Gratuity Eligibility and Section 2A of the Payment of Gratuity Act
There is a shortage of two months and a few days for gratuity eligibility. However, there are a few High Court judgments that have interpreted section 2A of the Payment of Gratuity Act to mean that even the fifth year would be considered as one year, provided that the employee has worked for 240 days (190 days in the case of employees working below the ground of a mine and working for less than six days in a week). In order to be eligible for gratuity, an employee should have worked for four years and 240 days in the fifth year. If that principle is adopted, then the employee will qualify for gratuity.
Differing Interpretations of Section 2A
On the other hand, there are differing views regarding section 2A, suggesting that it only implies that service will be considered continuous if the employee has worked for 240 days (190 days for workers employed below ground and those working less than six days a week) in each year. This interpretation does not imply that completing five years is unnecessary to qualify for gratuity.
From India, Kannur
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4526There is a shortage of two months and a few days for gratuity eligibility. However, there are a few High Court judgments that have interpreted section 2A of the Payment of Gratuity Act to mean that even the fifth year would be considered as one year, provided that the employee has worked for 240 days (190 days in the case of employees working below the ground of a mine and working for less than six days in a week). In order to be eligible for gratuity, an employee should have worked for four years and 240 days in the fifth year. If that principle is adopted, then the employee will qualify for gratuity.
Differing Interpretations of Section 2A
On the other hand, there are differing views regarding section 2A, suggesting that it only implies that service will be considered continuous if the employee has worked for 240 days (190 days for workers employed below ground and those working less than six days a week) in each year. This interpretation does not imply that completing five years is unnecessary to qualify for gratuity.
From India, Kannur
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc
CiteHR.AI
(Fact Checked)-Your interpretation of section 2A of the Payment of Gratuity Act is correct. The employee should qualify for gratuity based on the 4 years and 240 days rule. Keep up the good work! (1 Acknowledge point)