I wanted to know about payment of gratuity to an employee who have completed 4years 11 month of continuous service in a company.
As per Gratuity Act, what are the provision laid out in such a case.
Is gratuity payable or not to employee who resigned & left the services of company after serving 4 years 11 month.
Regards,
Sanjay Gupta
From India
As per Gratuity Act, what are the provision laid out in such a case.
Is gratuity payable or not to employee who resigned & left the services of company after serving 4 years 11 month.
Regards,
Sanjay Gupta
From India
@Sanjay.Kgupta@Adityabirla,
Please refer below rule to have clear idea on "The Payment of Gratuity Act, 1972".
Now This will defer industry wise, statewise, updates received by Local governing Bodies, Notification issues time to time.
3[2A. Continuous Service.- (1) For the purpose 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
4[***] 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 orcessation 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;
1[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.]
From India, Ahmedabad
32Please refer below rule to have clear idea on "The Payment of Gratuity Act, 1972".
Now This will defer industry wise, statewise, updates received by Local governing Bodies, Notification issues time to time.
3[2A. Continuous Service.- (1) For the purpose 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
4[***] 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 orcessation 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;
1[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.]
From India, Ahmedabad
Thanks for the elaborate reply.
But explicitly i wanted to know whether we can pay Gratuity to an employee who has worked for 4 years 11 month an organisation.
Kindly enlighten me with your views.
Regards,
Sanjay Gupta
From India
But explicitly i wanted to know whether we can pay Gratuity to an employee who has worked for 4 years 11 month an organisation.
Kindly enlighten me with your views.
Regards,
Sanjay Gupta
From India
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Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf
Gratuity Form I.doc