hi,
if an employee is being served a notice of leaving the job from an employer after three yrs of his employment(due to loss in business,but the co is limited firm), does employee have the right to claim for gratuity, since he is not leaving the job willingly please help by replying.
note:employer is notshutting down the business .
regards
From India, Delhi
if an employee is being served a notice of leaving the job from an employer after three yrs of his employment(due to loss in business,but the co is limited firm), does employee have the right to claim for gratuity, since he is not leaving the job willingly please help by replying.
note:employer is notshutting down the business .
regards
From India, Delhi
Dear Shanu 1973,
An employee is said to be eligible for Gratuity with not less than 5 years of continuous service. Please refer to the Payment of Gratuity Act u/sec 2A -
Continuous Service means; (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
While calculating for gratuity, if any person completing 5 years 7 months is said to be eligible for 6 years gratuity & if at all 5 years 5 months; he is said to have completed 5 years of his tenure. This means; if the person exceeds six months of tenure is supposed to have completed 1 year (240 days will be considered as having continuous service for that year).
In above case, the employee has not even completed 5 years of service and as per the gratuity act he isn't eligible and has no right to claim under any circumstances.
From India, Visakhapatnam
990An employee is said to be eligible for Gratuity with not less than 5 years of continuous service. Please refer to the Payment of Gratuity Act u/sec 2A -
Continuous Service means; (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
While calculating for gratuity, if any person completing 5 years 7 months is said to be eligible for 6 years gratuity & if at all 5 years 5 months; he is said to have completed 5 years of his tenure. This means; if the person exceeds six months of tenure is supposed to have completed 1 year (240 days will be considered as having continuous service for that year).
In above case, the employee has not even completed 5 years of service and as per the gratuity act he isn't eligible and has no right to claim under any circumstances.
From India, Visakhapatnam
Dear Shanu 1973
Gratuity is payable to an employee in case of his resignation or termination after he/she has rendered contineous 5 years service. In case where less than 5 years service rendered & the employee is terminated the gratuity is not payable.
regards
SDP
From India, Kolhapur
Gratuity is payable to an employee in case of his resignation or termination after he/she has rendered contineous 5 years service. In case where less than 5 years service rendered & the employee is terminated the gratuity is not payable.
regards
SDP
From India, Kolhapur
Hi Shanu,
Gratuity Payment to the employee is nothing to do with Profit or Loss of Business. Also, whether it is termination or resignation, does not matter for the payment of Gratuity.
As others have mentioned Gratuity is payayble on completion of 5 years of Service with the same employer. In this case, an employee cannot demand Gratuity under the Law. However, Employer can consider the payment of Gratuity if it is considered as a part of CTC as an ex-gratia.
Hope this woul suffice.
Ravindra Chaubal
Sr. Manager - HR
9960735999
From India, Delhi
Gratuity Payment to the employee is nothing to do with Profit or Loss of Business. Also, whether it is termination or resignation, does not matter for the payment of Gratuity.
As others have mentioned Gratuity is payayble on completion of 5 years of Service with the same employer. In this case, an employee cannot demand Gratuity under the Law. However, Employer can consider the payment of Gratuity if it is considered as a part of CTC as an ex-gratia.
Hope this woul suffice.
Ravindra Chaubal
Sr. Manager - HR
9960735999
From India, Delhi
Thanks Ravindra,
your advice sounds good, what i could understand from your view is that , it is a sole discretion of am employer to pay gratuity in this case,even if it is shown as part of ctc.
regards
From India, Delhi
your advice sounds good, what i could understand from your view is that , it is a sole discretion of am employer to pay gratuity in this case,even if it is shown as part of ctc.
regards
From India, Delhi
Hi Shanu 1973
Gratuity Payment to the employee is not the matter of Profit or Loss of Business. Also, whether the termination or resignation, as per the law of Gratuity payment Act, employee(s) have to complete 5 years continuously, & you have not completed 5 years in current organization so, you are not eligible for gratuity payment.
From India, Ranchi
Gratuity Payment to the employee is not the matter of Profit or Loss of Business. Also, whether the termination or resignation, as per the law of Gratuity payment Act, employee(s) have to complete 5 years continuously, & you have not completed 5 years in current organization so, you are not eligible for gratuity payment.
From India, Ranchi
Dear Ravindra Sir,
Pl. clarify, whether an Employer can deny Gratuity to one employee and give it to other employee, considering that both of them completed moer than 5 years of service.
H SUNDARA RAMAN
From India, Madras
Pl. clarify, whether an Employer can deny Gratuity to one employee and give it to other employee, considering that both of them completed moer than 5 years of service.
H SUNDARA RAMAN
From India, Madras
Dear Mr. Sundara Raman,
No employer has any right to deny paying gratuity to any employer who has completed his 5 years of tenure with the company. If two of your employees have completed 5 years each, both of them are eligible for payment of gratuity under the Gratutiy Act. The gratuity amount is payable to the employees within 30 days in a month from the date of leaving the company by the employee.
If employer denies to pay the gratuity in any case, the employee has rights to approach the labour commissioners office.
From India, Visakhapatnam
No employer has any right to deny paying gratuity to any employer who has completed his 5 years of tenure with the company. If two of your employees have completed 5 years each, both of them are eligible for payment of gratuity under the Gratutiy Act. The gratuity amount is payable to the employees within 30 days in a month from the date of leaving the company by the employee.
If employer denies to pay the gratuity in any case, the employee has rights to approach the labour commissioners office.
From India, Visakhapatnam
Dear H SUNDARA RAMAN
If an employee has completed 5 years of Service, he/she is eligible for Gratuity under the Payment of Gratuity Act and Employer cannot deny the Gruatuity as it is a legal requirement, unless an employee is dismissed from the services. Employer should not discriminate between 2 employees as far as legal payment is concerned. Do you have specific case, on which I can comment, if required.
Gratuity should be paid within 30days from the date of application for gratuity and not from the date of termination.
Thanks & best regards
Ravindra Chaubal
From India, Delhi
If an employee has completed 5 years of Service, he/she is eligible for Gratuity under the Payment of Gratuity Act and Employer cannot deny the Gruatuity as it is a legal requirement, unless an employee is dismissed from the services. Employer should not discriminate between 2 employees as far as legal payment is concerned. Do you have specific case, on which I can comment, if required.
Gratuity should be paid within 30days from the date of application for gratuity and not from the date of termination.
Thanks & best regards
Ravindra Chaubal
From India, Delhi
Every person, who has put in continuous service of more than five years, has a right to get gratuity under the provisions of Payment of Gratuity Act subject to a maximum of Rs.10 lakh from all sources of gratuity, on any type of separation from service except on the ground of moral turpitude. Even for dismissal on the ground of loss to the company, the quantum of loss shall be recovered from the payable gratuity and the balance has to be paid. There is no choice or option to the employer for discretionary payment.
Further, in case of death of an employee, the condition of five years of service is also not required and the legal heirs have the right to get the gratuity in respect of the deceased employee.
Regards
From India, Mumbai
Further, in case of death of an employee, the condition of five years of service is also not required and the legal heirs have the right to get the gratuity in respect of the deceased employee.
Regards
From India, Mumbai
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc