Hi... I have a query relating to Gratuity entitlement. If a resigned employee has worked for 4 years and 10 months is he eligible for Gratuity Payment or not?
Can no. of months worked (i.e. if more than 6 months) can be considered as 1 year before completion of 5 years or it can be considered after completion of 5 years ONLY?
Pls help.
Regards
Sweta
From India, Rajahmundry
Can no. of months worked (i.e. if more than 6 months) can be considered as 1 year before completion of 5 years or it can be considered after completion of 5 years ONLY?
Pls help.
Regards
Sweta
From India, Rajahmundry
1
NO.when a employee completed 4 and 10 months he is not entitled for the gratutiy but when enployee worked 5 years and 6 month or above six months it will be considred as 6 six years for gratutiy calculation ..the roundup and down formula is cosidred only when and employee completed 5 + years of service
From India, Gurgaon
From India, Gurgaon
Dear Sweta,
Yours is an oft-repeated question in this forum and had you made some efforts to see the previous discussions, you will understand that this is a settled question of law but some employers still stick to their otherwise wrong stand.
As per the ratio decidendi of the High Court of Madras in Mettur Beardsel Ltd., v Regional Labor Commissioner (Central) [ 1998 LLR 1072 ], if an employee completes 240 days service in the fifth year, he is eligible to claim gratuity under the Payment of Gratuity Act,1972 as per the interpretation of the definition of the term " continuous service " as defined u/s 2-A of the Act.
I would like to request you to carefully go through the provisions of section 2-A of the Act. As per clause (a)(i) and (ii) of subsection (2) of section 2-A, an employee is eligible to claim gratuity if he has completed 190 days of continuous service in the fifth year if the establishment is one that works less than 6 days a week and in any other case 240 days respectively.
From India, Salem
Yours is an oft-repeated question in this forum and had you made some efforts to see the previous discussions, you will understand that this is a settled question of law but some employers still stick to their otherwise wrong stand.
As per the ratio decidendi of the High Court of Madras in Mettur Beardsel Ltd., v Regional Labor Commissioner (Central) [ 1998 LLR 1072 ], if an employee completes 240 days service in the fifth year, he is eligible to claim gratuity under the Payment of Gratuity Act,1972 as per the interpretation of the definition of the term " continuous service " as defined u/s 2-A of the Act.
I would like to request you to carefully go through the provisions of section 2-A of the Act. As per clause (a)(i) and (ii) of subsection (2) of section 2-A, an employee is eligible to claim gratuity if he has completed 190 days of continuous service in the fifth year if the establishment is one that works less than 6 days a week and in any other case 240 days respectively.
From India, Salem
Dear Sweta,
According to Pakistan gratuity law is as. In accordance with the provisions of law, the rate of gratuity is "thirty (30) days wages for every completed year of service or any period in excess of six months". Any employment period exceeding six months will be considered as one year. Originally, gratuity was set at 15 days' wages for every completed year of service. In 1973, the rate was revised to 20 days' wages. In 1994, it was further revised to 30 days' wages for every completed year of service or any period in excess of six months. After the 18th Constitutional Amendment of 2010, provinces have enacted necessary legislation providing for gratuity on termination of employment. Punjab and the Islamabad Capital Territory provide 30 days' wages for each year of service. Khyber Pakhtunkhwa and Sindh provide one-month wages for each year of service. Balochistan requires two-months wages as gratuity for each year of service.
Thanking you
Qasim Raza
From Pakistan, Lahore
According to Pakistan gratuity law is as. In accordance with the provisions of law, the rate of gratuity is "thirty (30) days wages for every completed year of service or any period in excess of six months". Any employment period exceeding six months will be considered as one year. Originally, gratuity was set at 15 days' wages for every completed year of service. In 1973, the rate was revised to 20 days' wages. In 1994, it was further revised to 30 days' wages for every completed year of service or any period in excess of six months. After the 18th Constitutional Amendment of 2010, provinces have enacted necessary legislation providing for gratuity on termination of employment. Punjab and the Islamabad Capital Territory provide 30 days' wages for each year of service. Khyber Pakhtunkhwa and Sindh provide one-month wages for each year of service. Balochistan requires two-months wages as gratuity for each year of service.
Thanking you
Qasim Raza
From Pakistan, Lahore
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