Hi All
I have gone through the complete thread and going by what people have mentioned, an employee in an organization with 5 working days in a week is eligible for gratuity upon serving just 4 years and 190 days of uninterrupted service. However this doesn't make sense to me for the below reasons:
1> Section 4 in the Gratuity acts states that: Payment of gratuity.- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-- (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease:
2> Now the section 2 describes continuous service as:
(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 3*** treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lockout 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;
My point is that if an employee is serving 4 years and 190/240 days of uninterrupted period, he/she will fail in the section 2-1 itself in the definition of continuous service and section 2-2 is redundant in such case.
Please can someone confirm where my understanding is incorrect. I also feel none of the case mentioned in the thread are convincing for payment of gratuity upon 4Y190D of service (5 days working organization). Please can someone help as I fall under this case and my company says you will get it on serving 240 days.
Between my date of joining is 4-Oct-10 and date of relieving is 13-Apr-15 which means 4Y192D.
@Kumar Doab, @Isaac Gabriel, @Kirti Kar Tripathi, your expert comments please.
Thanks very much in advance!!
Abhinav