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Re : payment of gratuity ( s. k behera)

(Querist) 02 February 2012 This query is : Resolved 
Sir, I am S. K Behera Ast.ENGINEER (Elect)residing at Talcher, Odisha. i have worked in Damodar valley corporation for 4years and 11months .i have applied for gratuity in Form-I. But i got intimated by a letter in which they mentioned that i am not eligible for gratuity as i have not completed 5 years. what should i do and what is the exact procedure i should proceed to resolve my issue .and is there any grievance cell to whom i approach.or else any legal step .Pl guide meSir, i have worked in Damodar valley corporation for 4years and 11months .i have applied for gratuity in Form-I. But i got intimated by a letter in which they mentioned that i am not eligible for gratuity as i have not completed 5 years. what should i do and what is the exact procedure i should proceed to resolve my issue .and is there any grievance cell to whom i approach.or else any legal step .Pl guide me
V R SHROFF (Expert) 02 February 2012
Section: 4
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:
SO YO DID NOT COMPLETE 5 YEARS AND NOT ELIGIBLE FOR GRATUITY AS PER ACT.
Raj Kumar Makkad (Expert) 02 February 2012
I differ with the concluding para of Shroff. one year means 240 days in a year. If you have worked 240 days in 5th year then your year shall be treated as completed. You are very well entitled for the grant of gratuity as per aforesaid rule.

You serve a legal notice through a lawyer and wait for their response failing which file a civil suit in the area where either the office of corp is situated or you worked your job.
Isaac Gabriel (Expert) 03 February 2012
Section 4(2)reads as follows:
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned

point out this and seek payment.
V R SHROFF (Expert) 03 February 2012
AS PER PLAIN READING OF SEC 4(1)
contineous service of 5 years means calender year.
If Shri Makkad is right, we have to be supported by decided case laws.
240 days is a good point, but I cannot say it as accepted as a Calender year. If he had taken Sick Leave etc, and resigned on completed calender year, there was no room for doubt.

The Word "YEAR" in Sec 4(1) need definition of year as in Gratuity act, whether it is 240 days = 1 year 0r 365 days = 1 year??

Nobody work 240 days a year

365 days - 52 sundays-30 Privileged PL-15 casual leaveCL -30 Sick Leave - 15 Paid holidays -26 saturdays , what left, in 11 months??


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