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Gratuity payment period - Madras high court specified 240 days whether it is in a calendar year or just in the fifth year of service? - CiteHR

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aditya-komaragiri
Hi, I am working in a company since June 30, 2017, I resigned on 30.03.2022 and I am yet to be relieved from my service. However, I had completed 4 yrs 9 months of service. Am I eligible for gratuity and also madras high court specified 240 days whether it is in a calendar year or just in the fifth year of service. Kindly help me with clarification pls
From India, Hyderabad
drsivaglobalhr
305

Dear Colleague,
The Point here is the Completed Year and Continuous Service under Payment of Gratuity Act, 1972

Section: 2A Continuous service is very important to understand: For the purposes of this Act, -
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order
treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1),for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case

The Service computation is from your DOJ ( Date of Joining ) to DOL ( Date of Leaving) and not the Calendar year period. Hence if you had completed 4 years and 240 days of service in the 5th year of YOUR Service ( not calendar year), then you are eligible for Gratuity which you may claim from your Company upon relieving.

From India, Chennai
hr.sil@teabox.com
Please provide me Court decision which supports Gratuity claim for 4yrs and 240 days.
From India, Asansol
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