How many years a person should work in the company to get gratuity and what is the interest amount for the gratuity?
From India, Bangalore
From India, Bangalore
Person should work in an Establishment for Continuous for 05 years. to be eligible for Gratuity..!!!!
From India, Pune
467From India, Pune
Hi Sir,
I have a recently joined an IT company as an office administrator. Its a new firm and I have to settle all the requirements of the company. Very much confused from where to begin.
Can u please help me with that.
From India, Mohali
I have a recently joined an IT company as an office administrator. Its a new firm and I have to settle all the requirements of the company. Very much confused from where to begin.
Can u please help me with that.
From India, Mohali
Dear Gurpreet, Please come up with specific queries so that we can begin..... Wish you all the success....
From India, Pune
From India, Pune
A person has to complete 5 calendar years of continuous service to be eligible for gratuity. Gratuity is payable at the rate of 15 days pay (as per last drawn pay) per year worked. Please note the operative word here is continuous service. There is no legal provision regarding interest.
From India, Mumbai
From India, Mumbai
Dear ajay_s_kini,
Liitle correction to your answer
If the employer failed to disburse Gratuity in due time then Competent Authority can levy interest on due amount of Gratuity which is 9/10% ( Will confirm you exact interest rate ) .
From India, Pune
Liitle correction to your answer
If the employer failed to disburse Gratuity in due time then Competent Authority can levy interest on due amount of Gratuity which is 9/10% ( Will confirm you exact interest rate ) .
From India, Pune
Dear Ekambaram, If a person works for 4 year and 240 days continuously in a firm he is entitiled for gratuity payment.
From India, Chennai
From India, Chennai
Dear all
Further to inputs by other members I would like to quote the relevant section from the Gratuity Rule for better understanding of the counting of the number of days worked- continuous service. There are certain kind of absence from work which will not be counted in the 'generic term 4 yrs or 5 yrs of service.
It should be "CONTINUOUS SERVICE' in line with the following :
Section: 2A
Continuous service.
For the purposes of this Act, -
(1) 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 order, 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, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an 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;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
Regards,
Suresh
From India, Pune
Further to inputs by other members I would like to quote the relevant section from the Gratuity Rule for better understanding of the counting of the number of days worked- continuous service. There are certain kind of absence from work which will not be counted in the 'generic term 4 yrs or 5 yrs of service.
It should be "CONTINUOUS SERVICE' in line with the following :
Section: 2A
Continuous service.
For the purposes of this Act, -
(1) 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 order, 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, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an 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;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
Regards,
Suresh
From India, Pune
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.
How to Survive Being the New Person at Work.pdf
WORK PLACE STANDARDS - Blank.doc