Geratuity
shailesh pandey
(Querist) 29 April 2014
This query is : Resolved
Dear Sirs,
We know that Gratuity is applicable after five years .One staff member is going to retire next year in February & completed 4 years & 5 months only. Kindly advice whether he is eligible for gratuity or not
regards
shailesh
Sankaranarayanan
(Expert) 29 April 2014
Section: 2A
Continuous service.
For the purposes of this Act, -
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness,
accident, leave, absence from duty without leave….
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
As per this definition, 240 days of service should be considered as one year of continuous service
But the madras high court given judgement
if someone has completed 240 days in fifth year he should be entitled for gratuity
