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Shantanu (HR)     08 April 2015

Gratuity eligibility

Dear All,

We have a peculiar situation on account if at all an employee will be eligible for gratuity payout.Given below are the highlights;

1.There is an employee residing in US,coming to India to work for 28 days rotational work.He works only for 28 days  and goes back.In a year works for approx 180 days only.

2.He is only paid allowance is USD on daily basis as and when he works,i.e 28 days.

3.There are no basic pay and other components paid.

4.His contract of employment also clearly states that he will be paid allowance only as and when he comes down to work.

Please advice on;

1.Is he eligible for gratuity payout?

2.Mode of calculation (What component should be taken in account)

3.Is he not be defined a casual/contract worker serving less than 240 days in a year and no continous service.

Views Awaited.

Thanks in advance.

 

 

 



Learning

 1 Replies

arulprasath (HR & Legal)     09 April 2015

Dear 

Payment of gratuity act applicale in india only. Act said any employee working continious service of not less than five years eligible of payment gratuity. Provided exemption in case of death and disablement. so your mentioned case is not eligible for payment of gratuity as per the act.


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