Hi sir, below is the reply from my HR, please comment your view on this.
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When an employee is in continuous service under Section- 2-A(1) of the Payment of Gratuity Act, the question of number of days worked by him during each year or any of the years is of no consequence. Courts have interpreted the eligibility provision to mean four years and 240 days during the fifth year. In other words, an employee who works for four years and 240 days during the fifth year will be eligible to claim gratuity under the Payment of Gratuity Act, 1972. This position is confirmed by the Madras High Court in a judgement reported in 1998 LLR 1072.
For computation of 240 days, all the days on which a workman is paid wages will have to be taken into account. As such, your five day working does not make any difference as long as we pay wages for all the seven days of the week. The weekly rest days for which we pay wages, national & festival holidays for which we pay wages, leave for which we pay wages, etc. have all to be counted for purposes of determining as to whether a workman has worked for 240 days during the year.
Service of four years and one hundred and ninety days in the fifth year will not qualify for gratuity.
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