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Aminullah ( )     30 March 2016

Gratuity payment

Dear Sir,

I would like know from your good-self that it is said once employee completes 5 years of service, he is entitled for Gratuity.

My query is 5 years consist of how many number of days - 1825 days or 1560 days, if employee has worked for 1560 days is he entitled for Gratuity, Please clarify.

regards,

Amin

 

 

 



Learning

 2 Replies

Tushar Swar (Practitioner in HR Labour Laws & Compliance)     30 March 2016

Hi Aminullah,

Please note that, as per The Payment of Gratuity act. 1972 under section 2,-A, its mentioned the continuous services, means, employee shoud have work continuesly minimum for 5 yrs without interrupted of services for become eligible for Gratuity.

So, as per section 2, One year shall be consider with minimum worked for 240 days by employee & for six months service shall be consider for minimum worked for 120 days. 

its means, someone worked for 4.6yrs, then his 6 months services shall be consider as one year subjected minimum 120 days worked during this 6 months, then he / she become eligible for 5yrs of gratuity amount.

I hope above provided details are satisfy your query.

Regards,

Tushar Swar

(ACHRM, MBA-HR, DLL(Hons) In Labour Laws.

 

 

Kumar Doab (FIN)     30 March 2016

If the establishment works for 6 days/week or less than 6 days/week and employee has worked for 240/190 days/year then employee is a eligible.

If employee has worked for 4.6 years then employee is not eligible.

The condition of 6 months 1 day to be counted as 1year applies for after 5 years.

Therefore count accordingly and take DOJ-LWD as reference days.

 


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