Please suggest gratuity calculation for seasonal employees in case an employee worked only 5 seasons. Whether he is eligible for gratuity or not since he has not worked for minimum 5 years period, but he worked only for 5 seasons.
Regards,
Srinivas
From India, Visakhapatnam
6Regards,
Srinivas
From India, Visakhapatnam
Dear Srinivas,
If an employee works in a seasonal establishment & works for 5 seasons and fulfills statutory requirement of section 2A(3) of the Payment of Gratuity Act, 1972 then he is eligible to have gratuity from the employer @ seven days' wages for each season.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
If an employee works in a seasonal establishment & works for 5 seasons and fulfills statutory requirement of section 2A(3) of the Payment of Gratuity Act, 1972 then he is eligible to have gratuity from the employer @ seven days' wages for each season.
Opinion submitted as requested.
Regards,
R.N.Khola
From India, Delhi
Dear Khola,
Please correct me if I am wrong.
My understanding is that for seasonal employment also the eligibility remains the same, ie, 5 years continuous service with the employer. But the difference is that for regular (non seasonal) employment 240 days of work (above the ground) or 190 days (below the ground) in a year will constitute continuous service whereas for seasonal employment, an employee who had worked at least for seventy five percentage of the working days in each season will constitute continuous service.
There may be two or three seasons in a year and even five seasons in one year. Will an employee who had worked only for five seasons just in one or two years be eligible for gratuity?. I doubt.
Regards,
Madhu.T.K
From India, Kannur
Please correct me if I am wrong.
My understanding is that for seasonal employment also the eligibility remains the same, ie, 5 years continuous service with the employer. But the difference is that for regular (non seasonal) employment 240 days of work (above the ground) or 190 days (below the ground) in a year will constitute continuous service whereas for seasonal employment, an employee who had worked at least for seventy five percentage of the working days in each season will constitute continuous service.
There may be two or three seasons in a year and even five seasons in one year. Will an employee who had worked only for five seasons just in one or two years be eligible for gratuity?. I doubt.
Regards,
Madhu.T.K
From India, Kannur
R/Madhu.T.K,
Your good self is not at all wrong in submitting your view point. After examination of section 2A(3) of this Act specifically with reference to the seasonal establishment I have noticed that you have correctly said the working for 75% of the total operational days of the season during such period is necessary. The eligibility is to be seen on working in twelve calendar months i.e. one year. The operational days of a seasonal establishment may be continuous or may be in different spell. It is not specified in the Act it self that during the period of continuous service of one year how many seasonal working will be there in the year. Eligibility is to be seen on the employment of the year i.e. 12 calendar months.
Now coming to the query of Mr. Srinivas, I have given my opinion considering the five seasonal working in five years spell referring section 2A(3) of this Act but at the same time without noticing his statement of not completing of five years service. Looking at the point mentioned here-in-above, Mr. Srinivas is also requested to note this amended advice.
Thanks for timely intervention & correcting me.
Regards,
R.N.Khola
From India, Delhi
Your good self is not at all wrong in submitting your view point. After examination of section 2A(3) of this Act specifically with reference to the seasonal establishment I have noticed that you have correctly said the working for 75% of the total operational days of the season during such period is necessary. The eligibility is to be seen on working in twelve calendar months i.e. one year. The operational days of a seasonal establishment may be continuous or may be in different spell. It is not specified in the Act it self that during the period of continuous service of one year how many seasonal working will be there in the year. Eligibility is to be seen on the employment of the year i.e. 12 calendar months.
Now coming to the query of Mr. Srinivas, I have given my opinion considering the five seasonal working in five years spell referring section 2A(3) of this Act but at the same time without noticing his statement of not completing of five years service. Looking at the point mentioned here-in-above, Mr. Srinivas is also requested to note this amended advice.
Thanks for timely intervention & correcting me.
Regards,
R.N.Khola
From India, Delhi
Good interpretation and good informative posts. i am sure it will be useful for HR professional dealing with seasonal establishment. Regards
From India, Delhi
From India, Delhi
Gratuity is a benefit provided to employees as a form of recognition for their long-term service with an organization. In India, the Payment of Gratuity Act, 1972, governs gratuity payments to eligible employees. According to this act, an employee becomes eligible for gratuity if they have completed a minimum of 5 years of continuous service with the same employer.
In the case of seasonal employees who work only during specific seasons, the 5-year continuous service requirement still applies. If an employee has not completed a continuous service period of 5 years, they would not be eligible for gratuity, even if they worked for 5 seasons.
For gratuity eligibility, the period of service must be continuous and not interrupted. Therefore, if an employee has worked for less than 5 years, even if they have worked for multiple seasons, they would not be entitled to receive gratuity from that employer.
It's important for both employers and employees to be aware of the gratuity eligibility criteria as per the law to avoid any misunderstandings or incorrect expectations. If an employee is unsure about their gratuity entitlement, they should seek advice from their employer or consult with a legal expert familiar with labor laws.
From India, Mumbai
In the case of seasonal employees who work only during specific seasons, the 5-year continuous service requirement still applies. If an employee has not completed a continuous service period of 5 years, they would not be eligible for gratuity, even if they worked for 5 seasons.
For gratuity eligibility, the period of service must be continuous and not interrupted. Therefore, if an employee has worked for less than 5 years, even if they have worked for multiple seasons, they would not be entitled to receive gratuity from that employer.
It's important for both employers and employees to be aware of the gratuity eligibility criteria as per the law to avoid any misunderstandings or incorrect expectations. If an employee is unsure about their gratuity entitlement, they should seek advice from their employer or consult with a legal expert familiar with labor laws.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity calculation.doc
Gratuity Calculation tool.xls