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Mangesh   03 January 2018

Gratuity - Maternity Leave

Sir/ Madam, My wife joined Private IT Company  on 22/10/2012 and her last date in organisation was 14/12/2017. (5.2 years =1879 days)  She was on maternity leave from 25/07/2017 to 16/07/2017. (357 days) Due to some complecations our doctor suggested to take complete bed rest and so same she infomed in her office and submited medical certificate for the same.but Company provides maternity leave of 3 months only as per company policy.  So Comapny approved her unpaid leave for rest 9 months After maternity leave she joined organisation again on 17/07/2017. and since 17/07/2017 to 14/12/2017 she was working half day (obviously eligible fo half day salary).  Now In FnF her company denied to give gratuty by saying as per  Payment of Gratuty Act, 1972 & Maternity BenifitAct, 2017. she was on maternity leave for 357 days which is more than 26 weeks so they can not consider maternity leave as uninteruted service. So they deducted 357 days from her total service i.e. (1879 days  - 357 days =1522 days) which equals 4.2 years of service. So since now service is for only 4.2 years they can not give Gratuty Amount. and given reference of below Act.

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Payment of Gratuity Act, 1972 and Maternity Benefit Amendment Act,2017 As per section  2A of Payment of Gratuity (Amendment) Act, 2016 an employee shall be said to be in Continuous Service for a period if he/she has, for that period, been in uninterrupted service, including service which may be interrupted on account of maternity leave in case of female employees, however, that the total period of such maternity leave does not exceed twenty six weeks as per amendment in Maternity Benefit Amendment Act,2017. Maternity Benefit Amendment Act,2017 Applicable with effect from 1st April, 2017 This amendment is also applicable to all those female employees who were on maternity leave when the amended act became applicable i.e 01/04/2017.

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So now my question is my wife is really elligible for Gratuity.?

Please Guide/ Help?

Thanks In Advance...

 



Learning

 2 Replies

P. Venu (Advocate)     03 January 2018

She could not be on maternity leave for 357 days! How was this period treated?

Mangesh   03 January 2018

Her Official Maternity Leave is for 3 months only. For rest 9 months she was on Medical leave (Unpaid).

Like From 25/07/2016 to 16/11/2016 She was on medical leave due to some complecations. and From 17/11/2016 to 16/02/2017 she was on maternity leave  but Considering babys age she has applied for another leave from 17/02/2017 to 16/07/2017 which was approved by her employer (Unpaid). She joined office 17/07/2017.  

Since all leave were continues, her HR mentioned that she was on leave for 357 days and they so can not consider this period as a service.




 


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