I was working with an MNC from 11-Oct-2011 to 19-May-2017. In between, I had availed Leave without Pay (LWP), which was duly approved by the organization. The number of LWP days availed is 283, as confirmed by HR. I have been informed that I am not eligible for Gratuity as I should complete 4 years and 190 days of service. According to my calculations, I still meet the criteria. Can you please confirm if I am eligible for gratuity payment with the LWP days availed?
From India, Noida
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From India, Noida
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Dear Pallavi,
From your inputs, the following facts are discernible:
- Your total length of service from 11-10-2011 to 19-05-2017 = 5 years 7 months and 8 days.
- The authorized Leave on Loss of PAY is 283 days.
Therefore,
(1) You are eligible to claim gratuity since your total length of service in the organization from the date of entry to the date of exit is more than 5 years.
(2) You are also entitled to gratuity for the entire 283 days on LWP since it is authorized and as such would fall into "continuous service" as defined u/s 2-A of the Payment of Gratuity Act, 1972.
By and large, you are entitled to gratuity for a continuous service of 6 years.
From India, Salem
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6108From your inputs, the following facts are discernible:
- Your total length of service from 11-10-2011 to 19-05-2017 = 5 years 7 months and 8 days.
- The authorized Leave on Loss of PAY is 283 days.
Therefore,
(1) You are eligible to claim gratuity since your total length of service in the organization from the date of entry to the date of exit is more than 5 years.
(2) You are also entitled to gratuity for the entire 283 days on LWP since it is authorized and as such would fall into "continuous service" as defined u/s 2-A of the Payment of Gratuity Act, 1972.
By and large, you are entitled to gratuity for a continuous service of 6 years.
From India, Salem
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Hi,
I am a bit confused in terms of continuous services as per the Gratuity Act Section 2A. Here is my question:
I joined an organization in the year 2011 (2nd quarter), and in the year 2015 (3rd quarter), I took a leave without approval for 8 months (LWP). My employer assumed that I left the organization, but I did not (during these 8 months, there was no communication from either me or my employer).
In the 2nd quarter of 2016, I rejoined the same organization on the same terms and conditions without any increment policy. However, due to sickness, I left the organization in the 3rd quarter of 2019 because I resigned.
My employer says I am not eligible for gratuity. Please advise.
From India, New Delhi
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I am a bit confused in terms of continuous services as per the Gratuity Act Section 2A. Here is my question:
I joined an organization in the year 2011 (2nd quarter), and in the year 2015 (3rd quarter), I took a leave without approval for 8 months (LWP). My employer assumed that I left the organization, but I did not (during these 8 months, there was no communication from either me or my employer).
In the 2nd quarter of 2016, I rejoined the same organization on the same terms and conditions without any increment policy. However, due to sickness, I left the organization in the 3rd quarter of 2019 because I resigned.
My employer says I am not eligible for gratuity. Please advise.
From India, New Delhi
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Hi, Sir,
I have been working for 4.6 years.
My Joining Date: 26/04/2017 My Last Date: 27/11/2021 Total Tenure: 215 days I have an Earned leave balance of 30 days.
Can I add my leave balance to avail the gratuity benefit of 240 days?
Please suggest.
From India, Hyderabad
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I have been working for 4.6 years.
My Joining Date: 26/04/2017 My Last Date: 27/11/2021 Total Tenure: 215 days I have an Earned leave balance of 30 days.
Can I add my leave balance to avail the gratuity benefit of 240 days?
Please suggest.
From India, Hyderabad
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Dear friend, I have already answered this query in reply to your private message today. Sorry, you are not eligible.
From India, Salem
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From India, Salem
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Amber1348,
From what you have stated, it looks like there is continuity in service from 2011 to 2019. However, the order of your resuming service in 2016 is very important. It is crucial to critically examine this from Section 2A of the PGA 1972 to determine whether there is continuity or not. All related documents need to be legally examined before we can provide a conclusive opinion.
From India, Mumbai
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From what you have stated, it looks like there is continuity in service from 2011 to 2019. However, the order of your resuming service in 2016 is very important. It is crucial to critically examine this from Section 2A of the PGA 1972 to determine whether there is continuity or not. All related documents need to be legally examined before we can provide a conclusive opinion.
From India, Mumbai
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Dear Colleagues,
There are 2 aspects under Payment of Gratuity Act shared for your reading and understanding on this subject:
2(b) "completed year of service" means continuous service for one year;
2(c) "continuous service" means continuous service as defined in section 2A;
Payment of Gratuity Act, 1972 Section: 2A Continuous service. For the purposes of this Act:
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), layoff, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer:
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than:
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than:
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week;
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which:
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five percent of the number of days on which the establishment was in operation during such period.
Take Care,
Dr. P. SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
9865151329
From India, Chennai
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There are 2 aspects under Payment of Gratuity Act shared for your reading and understanding on this subject:
2(b) "completed year of service" means continuous service for one year;
2(c) "continuous service" means continuous service as defined in section 2A;
Payment of Gratuity Act, 1972 Section: 2A Continuous service. For the purposes of this Act:
(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), layoff, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer:
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than:
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than:
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week;
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which:
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five percent of the number of days on which the establishment was in operation during such period.
Take Care,
Dr. P. SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
9865151329
From India, Chennai
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf