Dear Seniors,
Greetings!!!
Please guide me in Gratuity Cases
A person had done 20 Year service now he is going to retire
He had done continuous service but in middle one or two year his working days are <240.So please guide me in his gratuity calculation we take his 20 Year or 18 years.
and If his working is < 240 days in last year what we can do in this case.
Thanks & Regards
Jagdish
From India
7Greetings!!!
Please guide me in Gratuity Cases
A person had done 20 Year service now he is going to retire
He had done continuous service but in middle one or two year his working days are <240.So please guide me in his gratuity calculation we take his 20 Year or 18 years.
and If his working is < 240 days in last year what we can do in this case.
Thanks & Regards
Jagdish
From India
you need to calculate gratuity for 18 years only. < 240 days service years may not be accounted for this calculation.
From India, New Delhi
From India, New Delhi
Dear friends,
I am working with a Central PSU. Here annual increment and promotion dates will be get postponed in compliance with LWOPs, but it will not effect the service for Gratuity. However I shall quote Mr. Madhu.T.K posted in this regard vide "https://www.citehr.com/140199-payment-gratuity-employee-days-support.html" as under :-
In the normal circumstances a person is presumed to have continuous service if he has worked for 240 days in a year of 12 months. However, with a view to avoiding denial of gratuity to an employee who has eligible service of 5 years but has not worked for 240 days in any particular year intervening the period of 5 years, a year separate ruling is there. Accordingly, one who has worked for at least 190 days in a year and for the absence (leave without pay) no notice or warning letter has been issued to the employee will be deemed as having continuous service.
Therefore, if in the year in which he had taken leave without pay for 45 days he had actually worked for at least 190 days and for the leave without pay no notice has been served on him by the employer asking him to explain why action should not be taken against him, then the year will be counted as service year for calculation of gratuity.
Regards,
Madhu.T.K
Abbas.P.S
From India, Bangalore
I am working with a Central PSU. Here annual increment and promotion dates will be get postponed in compliance with LWOPs, but it will not effect the service for Gratuity. However I shall quote Mr. Madhu.T.K posted in this regard vide "https://www.citehr.com/140199-payment-gratuity-employee-days-support.html" as under :-
In the normal circumstances a person is presumed to have continuous service if he has worked for 240 days in a year of 12 months. However, with a view to avoiding denial of gratuity to an employee who has eligible service of 5 years but has not worked for 240 days in any particular year intervening the period of 5 years, a year separate ruling is there. Accordingly, one who has worked for at least 190 days in a year and for the absence (leave without pay) no notice or warning letter has been issued to the employee will be deemed as having continuous service.
Therefore, if in the year in which he had taken leave without pay for 45 days he had actually worked for at least 190 days and for the leave without pay no notice has been served on him by the employer asking him to explain why action should not be taken against him, then the year will be counted as service year for calculation of gratuity.
Regards,
Madhu.T.K
Abbas.P.S
From India, Bangalore
Hi Mr.Jagdish,
According to the law:
Yes, you were right if an employee works less than 240 days in a year than it should not be considered as continuous service however if an employee service is interrupted due to sickness, leave, absence from duty (not being treated as break in service), lay-off, strike, lock-out or cessation of work not due to the fault of the employee than these has to be taken into account for calculating the continuous service.
Even after calculating all these things and still employee did not crossed 240 days mark than that employee did not eligible for the gratuity. Hence you have to pay gratuity for the years where he completed continuous service of 240 days in a year.
My View:
The above said employee rendered 20 years of service so i would suggest that if there is any valid reason for his absence in those 2years please consider it and pay gratuity for 20years if possible because as a HR it is one of our responsibility to send our retired people with great honour & full of satisfaction in F&F settlement.
With Regards
Mr.Thumbs Up
From India, Chennai
According to the law:
Yes, you were right if an employee works less than 240 days in a year than it should not be considered as continuous service however if an employee service is interrupted due to sickness, leave, absence from duty (not being treated as break in service), lay-off, strike, lock-out or cessation of work not due to the fault of the employee than these has to be taken into account for calculating the continuous service.
Even after calculating all these things and still employee did not crossed 240 days mark than that employee did not eligible for the gratuity. Hence you have to pay gratuity for the years where he completed continuous service of 240 days in a year.
My View:
The above said employee rendered 20 years of service so i would suggest that if there is any valid reason for his absence in those 2years please consider it and pay gratuity for 20years if possible because as a HR it is one of our responsibility to send our retired people with great honour & full of satisfaction in F&F settlement.
With Regards
Mr.Thumbs Up
From India, Chennai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc