Payment Of Gratuity - Payment Of Grautity [Thread 140199]

Hi!! Can someone tell whether an employee will get (entitled for ) gratuity if s/he has worked for uninterrupted five years, but has once availed LWP for about 45 days in fifth year. Is there any ruling to support this?
Thanks
Prasoon

Employee is very much entitled for gratuity. It was just a case of loss of pay but he was still a part of ur organization. Only in the case of rejoining the employee is not entitled for gratuity.

In the normal circumstances a person is presumed to have continuous service if he has worked for 240 days in a year of 12 months. However, with a view to avoiding denial of gratuity to an employee who has eligible service of 5 years but has not worked for 240 days in any particular year intervening the period of 5 years, a year separate ruling is there. Accordingly, one who has worked for at least 190 days in a year and for the absence (leave without pay) no notice or warning letter has been issued to the employee will be deemed as having continuous service.
Therefore, if in the year in which he had taken leave without pay for 45 days he had actually worked for at least 190 days and for the leave without pay no notice has been served on him by the employer asking him to explain why action should not be taken against him, then the year will be counted as service year for calculation of gratuity.
Regards,
Madhu.T.K

Thanks Madhu, it was a sanctioned leave, without any notice or penalty., but in case of denial do we as HR fraternity have any judgement or ruling supporting this?
Thanks again.
prasoon

dear
it is defined in act itself.if in a particular year someone has taken unauthorised leave and some punishment is given to him and total no of working days comes less than 240 than only u can think about forfeiture of gratuity.
tks
j s malik

Its simple Calculation : 240x4=960
240-45=195
240x5=1200
960+195=1155
Even the eligibility of gratuity is 4.8 years of continue service i.e = 4.8x240=1152
No issue go ahead

Dear Prasoon,


The Supreme Court had held in Lalappa Lingappa Vs Lakshmi Vishnu Textile Mills, Sholapur, that in terms of definition of “continuous service” in section 2 (c) of the Payment of Gratuity Act, employees who remained absent without pay and had actually worked for less than 240 days were denied gratuity. Since the enforcement of this rule resulted in denial of gratuity to a number of employees whose short term absence remained unregularised it was proposed to amplify the definition of continuous service to provide

(a)that an employee working in an establishment which works for less than six days in a week and who is not in uninterrupted service for one year, shall be deemed to be in continuous service for a period of one year if he has actually worked for 190 days in the preceding year, and
(b)that for determining the continuous period of six months for the purpose of payment of gratuity, an employee should have completed half the number of days of actual work which constitute “continuous service” for a whole year.

Regards,

Madhu.T.K

Sir,
i am working from 6 years in PSU organization, as my capacity office manager, So i would like to know that i am eligibile for graruity

If your Public Sector Unit has any gratuity scheme better than the one given in Payment of Gratuity Act, the rules stated in your standing orders about such gratuity scheme will apply. Otherwise, you are eligible for gratuity. There is no salary ceiling for eligibility for gratuity but the maximum gratuity payable to an employee is limited to Rs 3.5 Lakhs.
Regards,
Madhu.T.K

My wife worked in a MNC as Tech. Support Exec. from 02, Feb 2004 till 05 Sept 2008 which makes it 4 years 7 months n 3 days. She worked for 5 days a week (2 days off per week). She did not take any leave without pay. All her leaves were either sick or planned leave. Is she eligible for Gratuity? As per my calculation:
total days from 02/02/2004 - 05/09/2008 = 1645 days.
Total no of off days (2 off days per week) between the working period is 468
so 1645 - 468 = 1177 days worked.
I have read one of the comment saying that if you worked for 4.8 then also you are eligible for gratuity.
"By mnjTiwari
Re: Payment of Gratuity
Its simple Calculation : 240x4=960
240-45=195
240x5=1200
960+195=1155
Even the eligibility of gratuity is 4.8 years of continue service i.e = 4.8x240=1152
No issue go ahead"
Is she eligible for Gratuity?
If so then how do we go about it. Please help.