I worked from 15.02.2006 to 30.09.2010. My total service period is 4 Years, 7 Months and 16 Days. I have asked for Gratuity as per Section-4(2) which state that "For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned: Provided that in the case of a piece-rated employee, daily wages shall be computed..." Still, my F&A Dept is not paying me, stating that I have not completed 240 days in a Year. I have been given the understanding that 4 Years, 7 Months and 16 Days are treated as 5 Years. Please guide.
Section 4(2) that you have referred is all about computation of gratuity to those who are entitled to get it. That means, if you have worked for 5 years and above, say 5 years and seven months, for the calculation of the amount the excess of 6 months would be rounded off to one year, and for calculation of gratuity the length of service will be taken as six years. At the same time, there are interpretation of section 2A pertaining to continuous service to include 240 days in the fifth year as eligibility for gratuity. The number of days so required for an establishment which work for less than 6 days in a week shall be 190 days. But in such scenario also the said 240 or 190 days should be during a period of 12 months. As such if you have worked for 240/ 190 days in 7 months that may not make you qualify for gratuity.
From India, Kannur
4202From India, Kannur
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Minimum Qualifying service for Gratuity under the Payment of Gratuity Act.docx