Any employee working for 5 years and more are eligible for Gratuity. For computation of years of service following will be taken into consideration :
1) Working for 6 months or more in a year shall be considered and computed as 1 years.
2) Date of joining the employement and Date of last working day should be consider.
The said employee already worked for more than six months (186 & 170 days) in a year and hence his service for this period is also be counted as 1 year.
Regards
Nikesh Doure
From India, Pune
21) Working for 6 months or more in a year shall be considered and computed as 1 years.
2) Date of joining the employement and Date of last working day should be consider.
The said employee already worked for more than six months (186 & 170 days) in a year and hence his service for this period is also be counted as 1 year.
Regards
Nikesh Doure
From India, Pune
An employee is eligible for gratuity only if he had worked(paid) for 240 days in a year. For the purpose of calculation of year the period from the date of leaving and date of joining (including probation )is considered unless there is break in service. 5 years of such service is required for the consideration of eligibility for gratuity. Only after attaining the minimum eligibility criteria, rounding off of service for 6 months and above is considered.
However, it has been decided to pay an amount as gratuity in consideration of the service rendered by him, it is good thing. But it is not statutorily binding on you to take it as a precedence.
Sivarajan
From India, Thiruvananthapuram
However, it has been decided to pay an amount as gratuity in consideration of the service rendered by him, it is good thing. But it is not statutorily binding on you to take it as a precedence.
Sivarajan
From India, Thiruvananthapuram
Mr. Tarun Gupta
The employee is entitle for ten years of service in view of amendment to continuous service. The employee as long as he in service and there is no order passed to treat as break in service even if he does not work for single day in a year but he will be entitled to gratuity. This is in view of amendment to continuous service in definition in Payment of Gratuity Act.
P M Patel
From India, Mumbai
The employee is entitle for ten years of service in view of amendment to continuous service. The employee as long as he in service and there is no order passed to treat as break in service even if he does not work for single day in a year but he will be entitled to gratuity. This is in view of amendment to continuous service in definition in Payment of Gratuity Act.
P M Patel
From India, Mumbai
Dear All,
As i understand after attaining eligibility criteria of 5 years gratuity shall be calculated for entire period from DOJ to DOL and round of criteria of 6 months shall be applicable for last year i.e. leaving year only like if emp has left in 2012 and worked for more than 6 months, he shall be eligible for gratuity of 2012 also. in between if he has not worked for 240 days, he shall not be eligible for leave and at the same time disciplinary action could be taken for absenteeism accordingly.
in your case emp. shall be eligible for 10 years as last year he has worked for more than 6 months.
Also gratuity is social security and after eligibility it's employer's discretion and he can pay even more than actual calculation as a loyalty bonus/ long association reward.
if wrong pl. correct.
kishore
From India, Mumbai
As i understand after attaining eligibility criteria of 5 years gratuity shall be calculated for entire period from DOJ to DOL and round of criteria of 6 months shall be applicable for last year i.e. leaving year only like if emp has left in 2012 and worked for more than 6 months, he shall be eligible for gratuity of 2012 also. in between if he has not worked for 240 days, he shall not be eligible for leave and at the same time disciplinary action could be taken for absenteeism accordingly.
in your case emp. shall be eligible for 10 years as last year he has worked for more than 6 months.
Also gratuity is social security and after eligibility it's employer's discretion and he can pay even more than actual calculation as a loyalty bonus/ long association reward.
if wrong pl. correct.
kishore
From India, Mumbai
Dear Tarun ji,
As per The Payment of Gratuity Act the said employee is entitled for 10 years gratuity. Moreover it has nothing do with the date of confirmation as pointed out by Sh. Malhotra 444. For eligibility of Gratuity an employee has to work minimum five years, it is incorrect to say that if someone has worked for 240 days in the 5th year and will be eligible for gratuity. It is also irrelevant that he has worked for 180-200 days in last two years of his service. If an employee worked for 5 and half year he will be eligible for six year gratuity. The total period of service will be calculated from the Date of Joining to Date of Resignation. The formula for payment of Gratuity is;
Basis + DA / 26 X Number of year of Service (Please note that number of years of service must be 5 years from the date of joining) even if there is a shortfall of one day the employee will not be eligible for Gratuity.
Regards
Lokesh Sharmaa [/COLOR]
From India, Lucknow
As per The Payment of Gratuity Act the said employee is entitled for 10 years gratuity. Moreover it has nothing do with the date of confirmation as pointed out by Sh. Malhotra 444. For eligibility of Gratuity an employee has to work minimum five years, it is incorrect to say that if someone has worked for 240 days in the 5th year and will be eligible for gratuity. It is also irrelevant that he has worked for 180-200 days in last two years of his service. If an employee worked for 5 and half year he will be eligible for six year gratuity. The total period of service will be calculated from the Date of Joining to Date of Resignation. The formula for payment of Gratuity is;
Basis + DA / 26 X Number of year of Service (Please note that number of years of service must be 5 years from the date of joining) even if there is a shortfall of one day the employee will not be eligible for Gratuity.
Regards
Lokesh Sharmaa [/COLOR]
From India, Lucknow
Any person who was in continuous employment for 5 or more years is eligible to gratuity for the period from date of joining to separation. Period of six months & one day shall be considered for one year service. Since there is no break in service in writing as per records, he shall be entitled to total number of years of service including rounding off the fractional period beyond six months.
From India, Mumbai
From India, Mumbai
Dear Mr Gupta;
First eligibility for gratuity. Work for 5 years, then no disqualification, then calculation of gratuity according to calender year. e.g. doj is 1-9-2001 and dol is 5-6-2008 then calender years are 1-1-2002 to 31-12-2007 i.e. 6 years and add 1-9-2001 = 4 months + 1-1-2008 to 5-6-2008 = 6 months thus he has worked for 240 days which is one year. Finally he will get gratuity for 6+1 = 7 years provided he has worked for 240 days in each year. He will not be eligible for gratuity in the year in which he worked less than 240 days. In your case when he worked less than 240 days in 2 years he will lose gratuity for those 2 years. But years are calender years not financial years not the doj years. This is accepted, agreed and no grievance way of payment of gratuity.
Vibhakar Ramtirthkar
SVR Associates
HR Consultant
From India, Pune
First eligibility for gratuity. Work for 5 years, then no disqualification, then calculation of gratuity according to calender year. e.g. doj is 1-9-2001 and dol is 5-6-2008 then calender years are 1-1-2002 to 31-12-2007 i.e. 6 years and add 1-9-2001 = 4 months + 1-1-2008 to 5-6-2008 = 6 months thus he has worked for 240 days which is one year. Finally he will get gratuity for 6+1 = 7 years provided he has worked for 240 days in each year. He will not be eligible for gratuity in the year in which he worked less than 240 days. In your case when he worked less than 240 days in 2 years he will lose gratuity for those 2 years. But years are calender years not financial years not the doj years. This is accepted, agreed and no grievance way of payment of gratuity.
Vibhakar Ramtirthkar
SVR Associates
HR Consultant
From India, Pune
A completed year of service means he should have 240 working days in a year. hence he will be eligible for gratuity for a period of 8 years only.. Pl see Sec 2 a as given here under.
Regards,
R.R.Jaju
Payment of gratuity Act,1972
Section 2 A
2A. Continuous service. 2*["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 3*** 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 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; 3*[Explanation.--For the purposes 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 or (14 of 1947), 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, Mumbai
Regards,
R.R.Jaju
Payment of gratuity Act,1972
Section 2 A
2A. Continuous service. 2*["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 3*** 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 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; 3*[Explanation.--For the purposes 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 or (14 of 1947), 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, Mumbai
Dear Mr. Gupta,
Your information is incomplete in so far as the provisions of the Payment of Gratuity Act is concerned. The question is not for how much period you have paid salary to the employee, rather the question is of continuous service, which includes 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.
So, unless you have already formally treated his absence as break in service in accordance with the standing order, rules or regulations governing the employees of the establishment, you can't treat his service to be non-continuous service. In the absence of any such order, his service would be treated as uninterrupted service for the purpose of payment of gratuity.
From India, Delhi
Your information is incomplete in so far as the provisions of the Payment of Gratuity Act is concerned. The question is not for how much period you have paid salary to the employee, rather the question is of continuous service, which includes 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.
So, unless you have already formally treated his absence as break in service in accordance with the standing order, rules or regulations governing the employees of the establishment, you can't treat his service to be non-continuous service. In the absence of any such order, his service would be treated as uninterrupted service for the purpose of payment of gratuity.
From India, Delhi
Please note that the qualification for 240 days work is a must to get for gratuity every year after completion of
5 years of service. as per the Gratuity Act. But the employer is willing to pay irrespective to the number of days
worked, he can pay. But it should be a uniform policy. There should not be any deviation .
D.Gurumurthy
HR & IR Consultant
From India, Hyderabad
5 years of service. as per the Gratuity Act. But the employer is willing to pay irrespective to the number of days
worked, he can pay. But it should be a uniform policy. There should not be any deviation .
D.Gurumurthy
HR & IR Consultant
From India, Hyderabad
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