Greetings to all seniors,
I have one query about the Payment of Gratuity Act 1972. Please clarify this as soon as possible. Are Sundays, holidays, and weekly off days counted for calculating the 240 working days as a completed year under the Payment of Gratuity Act 1972? In other words, will "Sundays, weekly offs, and holidays" be counted for calculating the 240 working days to determine a completed year under the Payment of Gratuity Act 1972, or should they not be counted?
Please suggest to me. I'm looking for your valuable guidance.
Thanks and regards,
Devendra Mohan Gaur
From India, Faridabad
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3I have one query about the Payment of Gratuity Act 1972. Please clarify this as soon as possible. Are Sundays, holidays, and weekly off days counted for calculating the 240 working days as a completed year under the Payment of Gratuity Act 1972? In other words, will "Sundays, weekly offs, and holidays" be counted for calculating the 240 working days to determine a completed year under the Payment of Gratuity Act 1972, or should they not be counted?
Please suggest to me. I'm looking for your valuable guidance.
Thanks and regards,
Devendra Mohan Gaur
From India, Faridabad
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Dear Devendra,
This is in reference to your query regarding the computation of 190 days or 240 days, as applicable. The following days must be taken into consideration:
1. Sundays and holidays for which the workmen are paid.
2. Periods of lay-off.
3. Periods of earned leave with full wages.
4. Maternity leave period.
5. Absences due to temporary disablement from an accident.
Reference: Industrial Disputes Act, 1947
Thank you.
From India, Mumbai
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This is in reference to your query regarding the computation of 190 days or 240 days, as applicable. The following days must be taken into consideration:
1. Sundays and holidays for which the workmen are paid.
2. Periods of lay-off.
3. Periods of earned leave with full wages.
4. Maternity leave period.
5. Absences due to temporary disablement from an accident.
Reference: Industrial Disputes Act, 1947
Thank you.
From India, Mumbai
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Dear Mr. Ubaid,
Please provide a detailed explanation regarding point No. 1.
In the monthly salary structure, Sundays or weekly holidays are considered as paid weekly offs. However, in the per-day structure, payments are made only for working days. Consequently, employees under this structure do not receive payment for weekly offs.
In this scenario, how should this situation be addressed?
Thank you in advance.
From India, Pune
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Please provide a detailed explanation regarding point No. 1.
In the monthly salary structure, Sundays or weekly holidays are considered as paid weekly offs. However, in the per-day structure, payments are made only for working days. Consequently, employees under this structure do not receive payment for weekly offs.
In this scenario, how should this situation be addressed?
Thank you in advance.
From India, Pune
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If these weekly off days and holidays are paid days then these days are counted for deciding the eligibility for and calculation of Gratuity. Ref: Payment of Gratuity Act. Madhu.T.K
From India, Kannur
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From India, Kannur
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Sundays and Holidays & Weekly Off days are counted for calculating 240 working days as completed year under Payment of Gratuity Act.
From India, Ahmadabad
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From India, Ahmadabad
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As far I think Sundays or Weekly offs are not included for the calculation of 240 days. If these are included then why two definition have been given in Section 2a subsection 2 clause (a)(i) and (a)(ii) which reads as follows:
"(i) one hundred and ninety days, in the case of any 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"
In (i) there is no need to add this:
"or in an establishment which works for less than six days in a week."
It should have been omitted...
Regards
Dinesh Kumar
From India, New Delhi
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"(i) one hundred and ninety days, in the case of any 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"
In (i) there is no need to add this:
"or in an establishment which works for less than six days in a week."
It should have been omitted...
Regards
Dinesh Kumar
From India, New Delhi
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In Gratuity Act 1972 it not mentioned the calculation of Gratuity on working days. Hence w.off, paid holidays are considered while calculating days
From India, New Delhi
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From India, New Delhi
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Dear Dineshkumar 190 days are calculated for any establishment who has 5 day working in a week instead of 6 day working in a week.
From India, Ahmadabad
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From India, Ahmadabad
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Hi Mr. Dinesh and Saji,
From which sources have you defined 190 days as continuous services relevant to 5 days of work in a week? Kindly confirm and mention the provisions as well. I am not finding this information under the ID Act or Factory Act. Please confirm.
From India
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From which sources have you defined 190 days as continuous services relevant to 5 days of work in a week? Kindly confirm and mention the provisions as well. I am not finding this information under the ID Act or Factory Act. Please confirm.
From India
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Dear Mr. Dubey Kindly refer the Gratuity Act, instead of ID Act and Factory Act.
From India, Ahmadabad
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From India, Ahmadabad
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Dear Mr. Saji,
This is what I meant to say: if the weekly off (Sunday) is included, then why is the provision set at 190 days for those who work only 5 days a week? It should have been 240 days. If the legislature has mentioned 190 days for those who work 5 days, the intention was solely to exclude the weekly off from the calculation.
Regards,
Dinesh Kumar
From India, New Delhi
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This is what I meant to say: if the weekly off (Sunday) is included, then why is the provision set at 190 days for those who work only 5 days a week? It should have been 240 days. If the legislature has mentioned 190 days for those who work 5 days, the intention was solely to exclude the weekly off from the calculation.
Regards,
Dinesh Kumar
From India, New Delhi
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This is relevant for daily rated employees who are paid only for the days they work.
From India, Kannur
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From India, Kannur
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Respected Madhu Sir,
Would you please update me on the following:
1. Is it mentioned anywhere in the law that paid Sundays/weekly offs will be considered for 240 days?
2. Secondly, as you have mentioned, "This is relevant for daily-rated employees who are paid only for the days they work." Now, suppose in a 6-day working establishment we hire employees on a daily-rated basis, then only the working days (excluding weekly offs) will be considered for 240 days. Whereas, in the case of monthly-rated employees, all days (including weekly offs) will be considered. In this case, is this not injustice to the daily-rated employees? Monthly-rated employees will soon complete their 240 days in 8 months; on the other hand, the daily-rated employees will complete their 240 days in 9 months (240/26 days).
Please explain why the legislature has mentioned 190 days in the law for those who work for 5 days when the weekly offs are included.
Regards,
Dinesh Kumar
From India, New Delhi
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Would you please update me on the following:
1. Is it mentioned anywhere in the law that paid Sundays/weekly offs will be considered for 240 days?
2. Secondly, as you have mentioned, "This is relevant for daily-rated employees who are paid only for the days they work." Now, suppose in a 6-day working establishment we hire employees on a daily-rated basis, then only the working days (excluding weekly offs) will be considered for 240 days. Whereas, in the case of monthly-rated employees, all days (including weekly offs) will be considered. In this case, is this not injustice to the daily-rated employees? Monthly-rated employees will soon complete their 240 days in 8 months; on the other hand, the daily-rated employees will complete their 240 days in 9 months (240/26 days).
Please explain why the legislature has mentioned 190 days in the law for those who work for 5 days when the weekly offs are included.
Regards,
Dinesh Kumar
From India, New Delhi
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Why do you pay wages for weekly off days? You pay because they are in your employment. Why don't you pay wages to a daily rated worker? Because he is hired for a few days and the day on which his service is not required, he is not in your service. Similar is the case with days on which a person is on his authorized leave. On such days, he will be paid salary. This is because he is in your service. At the same time, if he has remained on leave without intimation or he has no leave to his credit due to which he has taken leave without pay, such days will be counted as days on which he is not in your service or interrupted service. On a legal strike day, the employer is bound to pay wages even though on the strike day the employee had not worked. Such a day will be counted as a day worked. A layoff day will be a day worked because the employee is paid wages (though not 100% but 50%).
The concept of 190/240 has no relevance to regular workers because for them a year means 365 days. They may get a salary for all the 30/31 days in every month with the exception of a few days LOP. But for a daily rated worker, the days physically present are the days counted as service. Their engagement itself is a flexibility arrangement. If you need a person to do work which is not regular in nature, you cannot afford to employ one in your permanent rolls and keep the person on the bench whenever there is no work. In such a situation, you can engage workers on a daily rated basis and pay their wages on each day or for convenience at the end of each spell. If your establishment works only for 5 days, your daily rated worker can work only for a maximum of 5 days per week. As such, he will get fewer days when compared to another worker who is engaged by an establishment which works for 6 days in a week. When it comes to terminal benefits, there should be some difference in treatment and accordingly the law has taken a stand that an establishment which works for 5 days a week should be paying its workers gratuity if they had worked for 190 days only.
Also, see that the 190 days principle applies to employees in mines who work below the ground. This is because working below the ground is rather difficult than working above the ground and therefore, a differential treatment has been given to them that they need to complete only 190 days to make their one year continuous.
There is no practice of taking each 190/240 days and putting it one after another. Therefore, completing the 190/240 days in 8 months or 9 months is immaterial. We have to take the date of leaving service first, then take the days backward and ensure that in each year whether the employee has worked for 240/190 days in each year of 12 months.
From India, Kannur
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The concept of 190/240 has no relevance to regular workers because for them a year means 365 days. They may get a salary for all the 30/31 days in every month with the exception of a few days LOP. But for a daily rated worker, the days physically present are the days counted as service. Their engagement itself is a flexibility arrangement. If you need a person to do work which is not regular in nature, you cannot afford to employ one in your permanent rolls and keep the person on the bench whenever there is no work. In such a situation, you can engage workers on a daily rated basis and pay their wages on each day or for convenience at the end of each spell. If your establishment works only for 5 days, your daily rated worker can work only for a maximum of 5 days per week. As such, he will get fewer days when compared to another worker who is engaged by an establishment which works for 6 days in a week. When it comes to terminal benefits, there should be some difference in treatment and accordingly the law has taken a stand that an establishment which works for 5 days a week should be paying its workers gratuity if they had worked for 190 days only.
Also, see that the 190 days principle applies to employees in mines who work below the ground. This is because working below the ground is rather difficult than working above the ground and therefore, a differential treatment has been given to them that they need to complete only 190 days to make their one year continuous.
There is no practice of taking each 190/240 days and putting it one after another. Therefore, completing the 190/240 days in 8 months or 9 months is immaterial. We have to take the date of leaving service first, then take the days backward and ensure that in each year whether the employee has worked for 240/190 days in each year of 12 months.
From India, Kannur
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc