Gratuity

The eligibility is 4 years + 240 days. Please review the Madras High Court Judgement of 1996, attached.

Vasudevan

Aptly and timely replied, with a ready attachment of Mds HC Order.  This is widely practised in many organisations, on peculiar situations such as the one queried by the author.

Hi, Please clarify the following

The Madras High court order of 1996 says

Quote

'Continuous serVice' - Qualifying period

of service by an employee - Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year as stipulated by section 2A of the Act -Thus an employee who has P.ut in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have

completed continuous s6rvice of five years -His claim for gratuity is tenable. Para 5

Unquote

The order states 240 days of service in a year and also, 10 months and 18 days in the fifth year subsequent to previous four years as eligible for gratuity.

Request the experts to enlighten the meaning of the above.

Best Regards

SS

Request the clarification again

Dear SS:

All conditions are mandatory, viz:

1) One has to be in service for ALL 12 MONTHS in every year during the first 4 years.  During such 12 months, he should have put in 240 days of actual attendance.

2) Likewise, in the fifty year, instead of 12 MONTHS service, it is suffice if he is in service for 10 mths-18 days.  Yet, he should also put in 240 days of actual attendance even in 5th year.  It is possible to complete such 240 days service even within 9 mths-6 days (@ 26 days per month), but he should be in service for10 mths-18 days.  This is relaxation from 12 months service, but there is no relaxation from the requirement of 240 days actual attendance.

Ravi, Adviser-HRManagement

Dear Sir,

Thanks for your clarification. I have a supplimentary question though migh be minor, but a clarification.

Can 240 days in the fifth year include paid leave also?  Say suppose in a 6 day week working organisation if one finishes 10 months and 18 days and also 210 working days and has taken paid leave for 30 days, it doesnt make the employee ineligible for gratuity?.

Request please clarify

Thanks

SS