hello seniors but madras high court has held that one who has completed 4 years and 240 days in an organisation, is eligible for gratuity
From India, Lucknow
From India, Lucknow
right now u not eligible fr gratuity!gratuity is paybale onli after completion of 5 years of service,after termination of service on superannuation,death disablment:the minimum eligibility of 5 years is not applicabe in case of death and disablement
From India, Gurgaon
From India, Gurgaon
Dear Sir, If the company feels that gratuity can be given to him on completion of 4 years and 10 months , will that can be done ?
From India, Madras
15From India, Madras
Dear Mr. J. S. Malik,
Sir,
Under The Payment of Gartuity Act-1972, U/s 4, Gratuity shall be payable to an employee on the termination of employment after he has redered CONTINUOUS SERVICE for not less than five years.
Now here I would like to mention the definition of continuous year of Service.
Under Section 2A, An employee is said to be in continuous service for a period of one year if employee during the period of twelve calender months preceding the date with reference to which calculation is to be made has actually worked under the employer for not less than 240 days. or 190 days for seasonal or mine estblishment.
Therefore if an employee worked for 4 years and in the fifth year if he has rendered services at least for 240 days, he will be deemed as he has rendered continuous service of 5 years. and Gratuity shall be payable.
More over.
Gratuity amount is 15 days average last drawn wages for every completed year of service (under section 2 (b), Completed year of service means continuous year of service) or part there of in excess of six month.
Again the definition of six month:- An employee is said to rendered six month service if he has actually worked for 120 days in the last six months.
E.g. Say an employee worked for five year & six months, in this case he will be entiteled for six year gratuity, not for only 5 years. (See Section 4 (2), of The payment of Gratuity Act 1972.)
Any suggestion will be highly solicited.
Thanks
Mohd. Arif Khan
Sir,
Under The Payment of Gartuity Act-1972, U/s 4, Gratuity shall be payable to an employee on the termination of employment after he has redered CONTINUOUS SERVICE for not less than five years.
Now here I would like to mention the definition of continuous year of Service.
Under Section 2A, An employee is said to be in continuous service for a period of one year if employee during the period of twelve calender months preceding the date with reference to which calculation is to be made has actually worked under the employer for not less than 240 days. or 190 days for seasonal or mine estblishment.
Therefore if an employee worked for 4 years and in the fifth year if he has rendered services at least for 240 days, he will be deemed as he has rendered continuous service of 5 years. and Gratuity shall be payable.
More over.
Gratuity amount is 15 days average last drawn wages for every completed year of service (under section 2 (b), Completed year of service means continuous year of service) or part there of in excess of six month.
Again the definition of six month:- An employee is said to rendered six month service if he has actually worked for 120 days in the last six months.
E.g. Say an employee worked for five year & six months, in this case he will be entiteled for six year gratuity, not for only 5 years. (See Section 4 (2), of The payment of Gratuity Act 1972.)
Any suggestion will be highly solicited.
Thanks
Mohd. Arif Khan
hello seniors but madras high court has held that one who has completed 4 years and 240 days in an organisation, is eligible for gratuity
From India, Delhi
From India, Delhi
There has been ruling of supreme court in this regards. At present I do not have the same, but I have Madras High Court ruling which vindicate the same.
For information of all members I am sending herewith the clipping of judgement issued in this respect where 4 years & 240 days is held valid for gratuity payment.
This issue has already been apprised & discussed on this platform. Members are requested before putting up their question they should go through the earlier post, brought on this platform to save their valuable time.
Regards,
Regards,
From India, Mumbai
For information of all members I am sending herewith the clipping of judgement issued in this respect where 4 years & 240 days is held valid for gratuity payment.
This issue has already been apprised & discussed on this platform. Members are requested before putting up their question they should go through the earlier post, brought on this platform to save their valuable time.
Regards,
Regards,
From India, Mumbai
Dear Mr. Malik,
There is no need to change the Act, there is everthing in the Act, Please read Sec. 2A, and Section 4. and therefore interpret the law.
It is well setteled law that if an emplyee has put 240 days in the fifth year he will be enligible for payment of gratuity. No confusion on the subject. There as various judgement of Apex Court on the same. The Expert also has the same veiw.
The definition of continuous service under section 2A is self explanatory. Read it with Section 4. Whereever the term completed year of service written in the Act it is actually Continuous service i.e. 240 days in the preceding 12 months.
No need to stick on 5 years, Actually 4 years and 240 days is also 5 years as defined in the section 2A of Act. The term we are using "YEAR" , is actually has a definition under the Payment of Gratuity Act.
We know all acts have different definition of employee, wages, year, Similarly the Completed year is termed as continuous year and the definition of continuous year is 240 days working in the 12 months preceding the date of reference to calculation of gratuity.
Thanks
Mohd. Arif Khan
9891578605
Thanks
There is no need to change the Act, there is everthing in the Act, Please read Sec. 2A, and Section 4. and therefore interpret the law.
It is well setteled law that if an emplyee has put 240 days in the fifth year he will be enligible for payment of gratuity. No confusion on the subject. There as various judgement of Apex Court on the same. The Expert also has the same veiw.
The definition of continuous service under section 2A is self explanatory. Read it with Section 4. Whereever the term completed year of service written in the Act it is actually Continuous service i.e. 240 days in the preceding 12 months.
No need to stick on 5 years, Actually 4 years and 240 days is also 5 years as defined in the section 2A of Act. The term we are using "YEAR" , is actually has a definition under the Payment of Gratuity Act.
We know all acts have different definition of employee, wages, year, Similarly the Completed year is termed as continuous year and the definition of continuous year is 240 days working in the 12 months preceding the date of reference to calculation of gratuity.
Thanks
Mohd. Arif Khan
9891578605
Thanks
dear
i understand your interpretation,but on the basis of this interpretation no one pays the gratuity because applicablity clause write five years.even if you have isured your gratuity through LIC also they pay after completion of five years.
suppose as a employer i am not paying it before completion of five years because it is written in applicablity clause.what is your choice ,go to the court .
practically no employer is paying before five years and no one
is intrested in definition of continous service.
regards
j s malik
From India, Delhi
i understand your interpretation,but on the basis of this interpretation no one pays the gratuity because applicablity clause write five years.even if you have isured your gratuity through LIC also they pay after completion of five years.
suppose as a employer i am not paying it before completion of five years because it is written in applicablity clause.what is your choice ,go to the court .
practically no employer is paying before five years and no one
is intrested in definition of continous service.
regards
j s malik
From India, Delhi
Dear Mr. J. S. Malik,
Parawise reply.
Appicablity clause written as five year Continuous Service (Mind it).
Insurane of Gratuity is not mandatory. We are discussing here facts of the Act.
If an employer is not paying he is voilating the Law.
Court is the ultimate authority to interpret the Law.
All professionally managed establishment are paying gratuity considering the fact and definition of Continuous Service.
Since you have asked for the section of Act therefore I have mentioned my above posts.
As last, Being a HR professional I can never give such comment as you have mentioned "
practically no employer is paying before five years and no one
is intrested in definition of continous service.
We as a HR Professional has to give the correct information it is depend upon the member of this site whether they are following or not.
Once againg, It is true in the light of Act and in Practice, that 240 days in the fifth year of service of an employee make him entitled for payment of Gratuity.
Always read the Act and supported material before commenting on it. Take the opinion from experts practioner of the subject.
Thanks
Mohd. Arif Khan
Parawise reply.
Appicablity clause written as five year Continuous Service (Mind it).
Insurane of Gratuity is not mandatory. We are discussing here facts of the Act.
If an employer is not paying he is voilating the Law.
Court is the ultimate authority to interpret the Law.
All professionally managed establishment are paying gratuity considering the fact and definition of Continuous Service.
Since you have asked for the section of Act therefore I have mentioned my above posts.
As last, Being a HR professional I can never give such comment as you have mentioned "
practically no employer is paying before five years and no one
is intrested in definition of continous service.
We as a HR Professional has to give the correct information it is depend upon the member of this site whether they are following or not.
Once againg, It is true in the light of Act and in Practice, that 240 days in the fifth year of service of an employee make him entitled for payment of Gratuity.
Always read the Act and supported material before commenting on it. Take the opinion from experts practioner of the subject.
Thanks
Mohd. Arif Khan
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc