Continuous service clause for the calculation gratuity
Nimisha Pankaj
(Querist) 04 February 2011
This query is : Resolved
There is a case in my office regarding the calculation gratuity. An emplyee was working as substitute worker for 8 years and then was made permanent without any break of service for another 10 yrs(Total service period = 18 yrs.) Now the employee is retiring on 28/02/2011 after completing 18 yrs. of service both 8 yrs as substitute and 10 yrs as permanent status. My question is how many year will be taken for the calculation of gratuity? Will it be 10 yrs or 18 yrs ?
Pls clarify.
Rgds,
Nimisha Pankaj
Basavaraj
(Expert) 04 February 2011
dear bansal sir could you pls expand like how did you calculate it.
Kirti Kar Tripathi
(Expert) 04 February 2011
For 18 years, the reason is that the Payment of Gratuity Act does not make any distinction between employees, thus his status of as substitute employee and as permanent workman will not make any effect, if he has worked continuously for than 18 years in what ever category, he is entailed for gratuity for that period.
Nimisha Pankaj
(Querist) 07 February 2011
Dear Tripathi sir,
Thank you very much for your advise. In addition to the same can you please provide any one case related to the question above so that based on the same I can proceed further.
Thanks for the advise on the above.
Nimisha Pankaj
(Querist) 08 February 2011
Dear Sir,
I am waiting for the reply. Your valuable input will help me to move ahead.
Rgds,
