Gratuity-minimum no. of 240 working days/year
Umesh
(Querist) 19 August 2013
This query is : Resolved
Dear Sirs,
I have certain doubts about gratuity act, kindly clarify.
As per Gratuity Act an employee to be eligible for gratuity has to work for a minimum of 240 days / year.
1. Kindly let me know from which date 240 days would be reckoned (starting from the date of joining or from calender month in which the employee has joined).
2. If an employee has worked for 7 years, out of which in 3 years he has worked for less than 240 days (calculated as per the Act), would he be paid gratuity for 4 year only.
3. For calculating no. of working days as above whether leave days without wages would be considered.
Thanking you in anticipation.
Best Regards
Kumar Doab
(Expert) 19 August 2013
190/240 days in last year of service.
From Date of joining to Date of reference (effective date of resignation/last day in office/date of relieving/date of retirement), first count 4Y then 190/240 days in 5thY.
Approved leave/holidays/weekly off would be counted.
{ Payment of Gratuity Act, 1972: Section: 2A:Continuous service.
Stake claim for payment of Gratuity payment of 7Y of service.
Submit FormI by redg. post.
If employee has tendered notice of resignation then employee has notified the employer for date of retirement………………and employee can apply one moth before date of retirement
{THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972
7. Application for gratuity: Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.}
Employer is also duty bound to calculate gratuity and supply notice to employee and copy to Controlling Authority…………..and pay the Gratuity within 30 days……….and if the employer disputes the amounts payable then employer shall deposit the amounts he admits as payable with Controlling Authority
{Payment of Gratuity Act, 1972: Section: 7:Determination of the amount of gratuity: (2), (3), (4)…}
Valuable advice of learned experts is sought.
Umesh
(Querist) 19 August 2013
Dear Sir
Thanks for your reply.
My query no. 2 above is still unresolved.
As the act defines continuous service as completed year (240 days), certain organisation follow the practice of not counting the year in which the employee has not worked for less than 240 days.
Please advise.
Kumar Doab
(Expert) 19 August 2013
Submit FormI by redg. post.
Let the employer determine the amount of gratuity and reply, in writing.
Based on the reply you may approach a labor consultant/service lawyer.
Valuable advice of learned experts is sought.
