Hi ,
Please note that the person will not be eligible to avail gratuity since he has not completed 5 years of continous service. Even if he did , when person is terminated the employer has the right to forfeit his gratuity wholly or partially .
The respective sections are given below.
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]¬ -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Hope this helps
Kirti
From India, Bangalore
13Please note that the person will not be eligible to avail gratuity since he has not completed 5 years of continous service. Even if he did , when person is terminated the employer has the right to forfeit his gratuity wholly or partially .
The respective sections are given below.
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]¬ -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Hope this helps
Kirti
From India, Bangalore
Please clarify whether gratuity is payable in the following case :-
First Year - 240 days completed
Second Year - 240 days completed
Third year - 240 NOT completed
Fourth year - 240 days completed
Fifth year - 240 days completed
Sixth year - 240 days completed
From India, Pune
First Year - 240 days completed
Second Year - 240 days completed
Third year - 240 NOT completed
Fourth year - 240 days completed
Fifth year - 240 days completed
Sixth year - 240 days completed
From India, Pune
Dear all,
I had learnt the Gratuity calculation from one of our Cite HR friends, so im just explaining that again.
"Gratuity is paid for Good Gratitude."
1.If an employees has completed 5 years continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement-15 days salary for each completed years of service or part thereof.
2. Salary = Basic Salary+D.A.
3. As per payment of Gratuity Act, 1972, amount of gratuity should be calculated as follows:
Formula:Salary x no.of completed years of servicex15/26
Say for Example:
Salary=Rs.5000 (Basic +D.A)
Period of service: 6 years 6 months 15 days
Completed year of service: 7 years
Gratuity= Rs.5000x7x15/26
= Rs.20,192/
From India, Cuttack
I had learnt the Gratuity calculation from one of our Cite HR friends, so im just explaining that again.
"Gratuity is paid for Good Gratitude."
1.If an employees has completed 5 years continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement-15 days salary for each completed years of service or part thereof.
2. Salary = Basic Salary+D.A.
3. As per payment of Gratuity Act, 1972, amount of gratuity should be calculated as follows:
Formula:Salary x no.of completed years of servicex15/26
Say for Example:
Salary=Rs.5000 (Basic +D.A)
Period of service: 6 years 6 months 15 days
Completed year of service: 7 years
Gratuity= Rs.5000x7x15/26
= Rs.20,192/
From India, Cuttack
Dear Kirti,
Forfeiture of gratuity is possible only when an employee is dismissed from service for gross negligence or for such gross misconduct involving moral turpitudes. Though the terminology used in the Payment of Gratuity Act is termination, an employee does not become ineligible for gratuity if his services is terminated for any other reasons as provided in the Act like causing damage to property, severe misconduct etc.
Regards,
Madhu.T.K
From India, Kannur
Forfeiture of gratuity is possible only when an employee is dismissed from service for gross negligence or for such gross misconduct involving moral turpitudes. Though the terminology used in the Payment of Gratuity Act is termination, an employee does not become ineligible for gratuity if his services is terminated for any other reasons as provided in the Act like causing damage to property, severe misconduct etc.
Regards,
Madhu.T.K
From India, Kannur
Sir, the attached file is corrupted can u send the file again. Regards Anshu Kumari HR Executive
From India, Gurgaon
From India, Gurgaon
Gratuity will be given to the persons who completed 5 yrs of service,besides he/she should work for at least 240 days(190 days in case of working below ground) in each year.
From India, Hyderabad
From India, Hyderabad
hi first of all continous service of 5 year must for gratuity
secondly for madhu's opinion i like to say in a perticular case madras high court has held that an employee regarding continous servce for a period of 240 days for a year i.e deemed to have continous in service for 1 year as stipulated by section 2A of the act but the High court distinguished the earlier rulling of Andhra Pradesh High court where in it was held that an employee who has worked for 4 years and 11 months and 10 days having not complted 5 years of service will not be entitled for gratuity. for Refference Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras,1998 LLR1072.
Experts need your opinion.
Ratikanta Rath
(HR MANAGER)
From India, Angul
secondly for madhu's opinion i like to say in a perticular case madras high court has held that an employee regarding continous servce for a period of 240 days for a year i.e deemed to have continous in service for 1 year as stipulated by section 2A of the act but the High court distinguished the earlier rulling of Andhra Pradesh High court where in it was held that an employee who has worked for 4 years and 11 months and 10 days having not complted 5 years of service will not be entitled for gratuity. for Refference Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras,1998 LLR1072.
Experts need your opinion.
Ratikanta Rath
(HR MANAGER)
From India, Angul
Dear Jyoti
As per The Gratutity act Any person who dies before completing his 5 yr tenure with a company, he ( his nominee) is entitled to get the gratutiy but in case of termination before 5 years he will not be entitled for Gratutiy.
Best Regards,
Shikha Agarwal
From India, Bangalore
As per The Gratutity act Any person who dies before completing his 5 yr tenure with a company, he ( his nominee) is entitled to get the gratutiy but in case of termination before 5 years he will not be entitled for Gratutiy.
Best Regards,
Shikha Agarwal
From India, Bangalore
Gratuity can not be paid to a person, who is terminated before five years of continuous service. Gratuity is gratification, not award.
From India, Surat
From India, Surat
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc