One employee of the company has been working since April 2004. The company was not covered under the gratuity act since 2011-12 as it had fewer than 10 employees. However, in the year 2011-12, the company became covered by the gratuity act. The employee resigned in the year 2015-16. How should the gratuity of the employee be calculated? Let's assume his basic salary was 25,000 at the time of resignation.
From India, Faridabad
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From India, Faridabad
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Applicability of the Gratuity Act is based on the point of time of resignation. Therefore, the fact that the company was out of coverage in the earlier periods will not make any difference in the computation of the gratuity. You will be required to pay the full gratuity to the employee based on the number of years he has actually worked.
From India, Mumbai
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2510From India, Mumbai
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