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shweta khandelwal (SENIOR EXECUTIVE )     05 January 2014

Continuous service period to be defined

An employee works for a civil organisation where his number of days is less then 240 days every year.He joined the organisation on 01.08.2005 and worked till 01.08.2012. but due to seasonal conditions,he was not able to complete 240 days in any year.he worked for 200 days, 225 days, 225 days,etc each year.He is on contract basis with organisation.Please let me know if he is eligible for gratuity and if yes then how much???



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 4 Replies

Kumar Doab (FIN)     05 January 2014



Payment of Gratuity Act, 1972

 

Section: 2A: Continuous service.

 

 

(3) where 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 for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.

 

 

 

 You may do the calculations on your own in compliance to the Act.

shweta khandelwal (SENIOR EXECUTIVE )     05 January 2014

Sir,Thanks for reply. but the organisation is not a seasonal establishment. It is construction company where due  rainfall conditions labours are not able to work.In that case also the calculations will be same as in seasonal establishments?????

Kumar Doab (FIN)     05 January 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............................................. or cessation of work not due to any fault of the employee,..........................

 

You have yourself agreed that  Employer's establishment is not seasonal establishment.

The employee is not at fault.

Sudhir Kumar, Advocate (Advocate)     07 January 2014

well elaborated by Mr Kumar Doab


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