Gratuity payment rules after incentivised leave of absence
Subhadeep Sarkar
(Querist) 24 April 2016
This query is : Resolved
Dear experts,
I have been working in an oilfield company since October 2011.
Due to the ongoing turmoil in the oil industry I was asked by my employer to get into an agreement of Incentivised Leave of Absence for 1year which started from July 2015.According to it, my seniority will keep on accruing and i will be paid 50percent of my basic and HRA only while all other benefits have been suspended for this 1year. This agreement will be ending on July 2016 and by then I will already complete 4years 9months in the current company.
My queries are
1)Is a person eligible for gratuity only after 5years of service or after 4yr 8months of service.
2) Since my employer proposed me to get into this agreement due to the financial turmoil, will this leave of absence be categorised as loss of pay or will this 1year be included for calculation of my Gratuity.
Thanks in advance for your kind suggestions and replies
Kumar Doab
(Expert) 24 April 2016
You may post the published Gratuity Rules, and so called 'Incentivised Leave of Absence' applicable to establishment.
Rajendra K Goyal
(Expert) 24 April 2016
Company rule, leave applied and sanctioned need to be referred, consult local service matters consultant.
H.M.Patnaik
(Expert) 25 April 2016
Gratuity becomes payable upon completion of five years continuous service in Indian context.
Since the present agreement has been devised by your employers to tide over financial turmoil and simultaneously bind to its own payroll,this period of mutually agreed leave will also form part of your qualifying period of five years for being eligible for Gratuity claim.
Kumar Doab
(Expert) 25 April 2016
The author should have posted which Gratuity Rules apply e.g Payment of Gratuity Act?
