I have been working as Assistant Professor at a self financing engineering college for 15 years. After completing continuous 12 years of service, management had imposed compulsory loss off pay leave of six months in a year continuisily three years without knowing our situation , totally I have taken a total of 20 months LWP (Leave without pay) in different years which is duly imposed ed by the institution.
my question is
1. I am already eligible for gratuity but the managemnet has not giving gratuity what can i do?
2. if the management trying to omit gratuity during LWP months. Can I claim the gratuity for LWP months?
3. can i claim the salary/ at least basic salary with out DA for LWP months because of compulsorily imposing leave by the authorities.
hope your valuable ad genuine replays with proofs.
aslam
From India, Chennai
my question is
1. I am already eligible for gratuity but the managemnet has not giving gratuity what can i do?
2. if the management trying to omit gratuity during LWP months. Can I claim the gratuity for LWP months?
3. can i claim the salary/ at least basic salary with out DA for LWP months because of compulsorily imposing leave by the authorities.
hope your valuable ad genuine replays with proofs.
aslam
From India, Chennai
I understand that the loss of pay leaves that you have taken are as permitted by the management and and are approved leaves. I also understand that against your act of taking leave without pay no disciplinary action was taken against you by the management. Then that period will be counted as 'continuous service' for the purpose of computing your gratuity.
Gratuity is computed on the gross salary excluding certain components like commission, overtime allowance, house rent allowance and similar allowance. There is no mandate under the Act that gratuity should be calculated only on Basic pay and DA. Please read an article in the below mentioned link just for an academic interest.
http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html
I am of the opinion that you should claim gratuity from the College by sending a compliant to the Controlling Authority soon.
From India, Kannur
4248Gratuity is computed on the gross salary excluding certain components like commission, overtime allowance, house rent allowance and similar allowance. There is no mandate under the Act that gratuity should be calculated only on Basic pay and DA. Please read an article in the below mentioned link just for an academic interest.
http://madhu-t-k.blogspot.com/2024/04/gratuity-qualifying-salary-some.html
I am of the opinion that you should claim gratuity from the College by sending a compliant to the Controlling Authority soon.
From India, Kannur
Eligibility for gratuity and salary for leave without pay (LWP) can vary depending on your country’s labor laws and company policies. Here’s a general overview:
Eligibility for Gratuity:
Length of Service: In many countries, employees are eligible for gratuity if they have completed a minimum period of service, typically 5 years.
Payment: Gratuity is generally paid at the time of retirement, resignation, or termination, provided the employee meets the eligibility criteria.
Calculation: Gratuity is usually calculated based on the last drawn salary and the years of service.
Here, the “Last Drawn Salary” is the sum of basic salary basic salary plus dearness allowance.
Salary During Leave Without Pay (LWP):
Impact on Salary: During LWP, employees typically do not receive their regular salary for the days they are on leave.
Impact on Gratuity: In some places, the period of LWP might not count towards the calculation of gratuity if the employee is not on authorized leave or has not completed the minimum required service.
Company Policies: Many companies have their own policies regarding LWP and how it affects salary and other benefits. It's essential to check your company’s specific policies and employment contract.
If you provide your country or region, I can give you more precise information relevant to your location!
From India, Mumbai
Eligibility for Gratuity:
Length of Service: In many countries, employees are eligible for gratuity if they have completed a minimum period of service, typically 5 years.
Payment: Gratuity is generally paid at the time of retirement, resignation, or termination, provided the employee meets the eligibility criteria.
Calculation: Gratuity is usually calculated based on the last drawn salary and the years of service.
Here, the “Last Drawn Salary” is the sum of basic salary basic salary plus dearness allowance.
Salary During Leave Without Pay (LWP):
Impact on Salary: During LWP, employees typically do not receive their regular salary for the days they are on leave.
Impact on Gratuity: In some places, the period of LWP might not count towards the calculation of gratuity if the employee is not on authorized leave or has not completed the minimum required service.
Company Policies: Many companies have their own policies regarding LWP and how it affects salary and other benefits. It's essential to check your company’s specific policies and employment contract.
If you provide your country or region, I can give you more precise information relevant to your location!
From India, Mumbai
@Abhishek-Tiwari3441579 where is it mentioned under Payment of Gratuity Act that the “Last Drawn Salary” is the sum of basic salary basic salary plus dearness allowance"?
Please be informed that during leave without pay days also the employee is in the service of the employer though not employed, and for continuous service what is required is whether the service has been continuous or not. It is not that during LOP days the employee's name would be removed from the Muster Rolls, and when he resumes work, he would be registered as a new employee. It is true that in respect of leave without pay which is unauthorised, there will be a communication from the employer that the period of absence would be treated as service breaks for all benefits. That LWP days can be excluded from the calculation sheet of gratuity.
According to section 2A 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 break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee. It is important to note that in this case the LOP was as per an arrangement by the management, and against the said LOP there would exist any order treating the same as interruption of service. Therefore, he is rightly entitled to get gratuity for the entire period of service.
From India, Kannur
Please be informed that during leave without pay days also the employee is in the service of the employer though not employed, and for continuous service what is required is whether the service has been continuous or not. It is not that during LOP days the employee's name would be removed from the Muster Rolls, and when he resumes work, he would be registered as a new employee. It is true that in respect of leave without pay which is unauthorised, there will be a communication from the employer that the period of absence would be treated as service breaks for all benefits. That LWP days can be excluded from the calculation sheet of gratuity.
According to section 2A 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 break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee. It is important to note that in this case the LOP was as per an arrangement by the management, and against the said LOP there would exist any order treating the same as interruption of service. Therefore, he is rightly entitled to get gratuity for the entire period of service.
From India, Kannur
THANKS ALL, AGAIN I HAVE A DOUBT THAT, whether employee has to complete 240 working days in each year? TOTALLY I HAD FIFTEEN YEARS OF SERVICE , IN MY CASE MANAGEMENT HAD IMPOSED COMPULSORY LWP AROUNT SIX MONTHS PER YEAR THAT WAS REPEATED IN LAST THREE YEARS, THERE IS ANY CLAUSE IN OUR ACT 1972 THAT SUPPORTS CONTINIOUS SERVICE
From India, Chennai
From India, Chennai
240 days (in the case of establishments working for less than 6 days in a week 190 days) in a period of 12 months is mandatory for eligibility. But in your case the leave without pay is as per the policy adopted by the employer and against that there was no disciplinary action taken against you. Hence the service will be considered as uninterrupted only. See the definition of continuous service as given in section 2A ".....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 break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment)....."
If the management is not counting it for calculation of gratuity amount, you can file a complaint before the Controlling Authority.
From India, Kannur
If the management is not counting it for calculation of gratuity amount, you can file a complaint before the Controlling Authority.
From India, Kannur
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx