Dear Matrix,
yes you are eligible for gratuity amount the formula to calculate gratuity is:
Basic salary* 15/26* No. of Years of Service.
So basic salary will be the last drawn basic salary and the person should complete 5 yrs of continous service.
Regards
Pooja
From India, Kanpur
19yes you are eligible for gratuity amount the formula to calculate gratuity is:
Basic salary* 15/26* No. of Years of Service.
So basic salary will be the last drawn basic salary and the person should complete 5 yrs of continous service.
Regards
Pooja
From India, Kanpur
Dear all,
1. Regarding the first query from Mr.Abhay Joshi, i agree with the comments of Mr.PN. Khola, Sr.Associate of skylark associates. During the final ( 5th year), if the employee had served 240 days of service, he is eligible for payment of Gratuity.
As Regards the query from Ms. Pratiba, I tend to aagree with Mr. Dhoop. My advise to Ms. pratiba is not to resign. If the company is paying one month's notice pay in lieu of One month service, that itself will be an adequate cause to prove the malafide intentions of the management of the company in perverting to deny the rightful claims of the employees.
A.Irudayam
Advocate and HR Consultant
99406 86632
From India, Madras
1. Regarding the first query from Mr.Abhay Joshi, i agree with the comments of Mr.PN. Khola, Sr.Associate of skylark associates. During the final ( 5th year), if the employee had served 240 days of service, he is eligible for payment of Gratuity.
As Regards the query from Ms. Pratiba, I tend to aagree with Mr. Dhoop. My advise to Ms. pratiba is not to resign. If the company is paying one month's notice pay in lieu of One month service, that itself will be an adequate cause to prove the malafide intentions of the management of the company in perverting to deny the rightful claims of the employees.
A.Irudayam
Advocate and HR Consultant
99406 86632
From India, Madras
Dear All
Thanks for everybody for your valuable suggestions. We are alsways sharing our information and suggestions in future regarding our HR Profession.
Wish you all of you Happy Holi.
Regards,
Abhay
From India, Pune
Thanks for everybody for your valuable suggestions. We are alsways sharing our information and suggestions in future regarding our HR Profession.
Wish you all of you Happy Holi.
Regards,
Abhay
From India, Pune
Dear Mr.Abhay
genarally if employee joind on company we treated as that first day is the date of joining even he is in probation period(6months or 3months). you mentioned the date of joining in appoinment or Experiance letter is 1April 2004, so his service is caliculate from 1 in this case he resigned on 1March 2009 if he resigned on 31 March 2009 he compleated 5 years service so he is not compleated his 5 years service.if he give one month notice period to you or one month salary then he is eligible for Gratuity.
in this case he is not compleated 5 years even he can get gratuite as per gratuity act 1972
if he is compleated 5years service Amount=(Basic Salary+D.A)*(15/26)* no. of years
if he is not compleated 5years service Amount=(Basic+D.A)*(1/2)*no. of years
in this case no. of years is 4 only
refer
http://profit.ndtv.com/Calculators/gratuity.htm
From India, Visakhapatnam
genarally if employee joind on company we treated as that first day is the date of joining even he is in probation period(6months or 3months). you mentioned the date of joining in appoinment or Experiance letter is 1April 2004, so his service is caliculate from 1 in this case he resigned on 1March 2009 if he resigned on 31 March 2009 he compleated 5 years service so he is not compleated his 5 years service.if he give one month notice period to you or one month salary then he is eligible for Gratuity.
in this case he is not compleated 5 years even he can get gratuite as per gratuity act 1972
if he is compleated 5years service Amount=(Basic Salary+D.A)*(15/26)* no. of years
if he is not compleated 5years service Amount=(Basic+D.A)*(1/2)*no. of years
in this case no. of years is 4 only
refer
http://profit.ndtv.com/Calculators/gratuity.htm
From India, Visakhapatnam
Dear Pooja ,
thanks for the reply.
Just to clear you and get feedback about the eligibility for gratuity: I joined my present company on 5th June 2004 and on now on notice period and my last day in company will be 7th June 2009 ( So technically I am completing 5 years of contineous service). My confusion now is regarding 240 days of job in a year?
Can I still get the Gratuity?
Comments from all are welcome.
Thanks in advance
From United States
thanks for the reply.
Just to clear you and get feedback about the eligibility for gratuity: I joined my present company on 5th June 2004 and on now on notice period and my last day in company will be 7th June 2009 ( So technically I am completing 5 years of contineous service). My confusion now is regarding 240 days of job in a year?
Can I still get the Gratuity?
Comments from all are welcome.
Thanks in advance
From United States
Dear Abhay,
Gratuity accrues to an employee from the date of his joining your organization irrespective of his confirmation date and is payable within 30 days from the date it becomes payable.
The management has its prerogative of releasing / short-changing an employee any time it deems fit during the notice period. However, it is obligated to pay his "full salary + benefits (+ perks, if any) for the full notice period since as per the terms & conditions of his employment, he has shown his willingness to serve the Company for the one month's notice period. Law, strictly speaking, will view him to be working during his notice period.
The only exception will be in case the employer can justify the short-change in notice period and immediate relieving on some genuine & adequate reasons showing that his continuance is detrimental and will hinder business (usually difficult to prove unless blatant)
As regards Gratuity eligibility, he will be better served in completing 5 years of continuous service as under the Act. If he is forced to leave by an immediate relieving, on paper he is not eligible for Gratuity. However, law will view it otherwise in case of a litigation given that he was forced to exit and his Gratuity stands payable.
In simple words, if he goes for a litigation, he may be restored his Gratuity if malafide intentions of the employer are established. If not, the employer may get away. This is indeed a tricky technical issue.
Legally, given the circumstances, it may be held that a forced-resignation/forced early cessation of service without good reasons will tantamount to it being retrenchment of sorts and, therefore, it is immaterial that the termination is ocassioned by the need to discharge surplus manpower.
It has been held by the Supreme Court that retrenchment of employees will fall within the scope of Section 4(1) of the Payment of Gratuity Act and a retrenched employee will be entitled to Gratuity in such a borderline case.
Generally, however, it has been established that an employee satisfying conditions of length of service and salary limit will be entitled to gratuity even if he is resigning from service as also confirmed by the Delhi High Court (Texmaco Ltd. vs Ram Dhan 1992 LLR 369 (Del HC). Gratuity payable cannot even be stalled under SICA or financial difficulties of the employer.
Do note that the Madras HC has held that an employee rendering continuous service for a period of 240 days in a year. i.e. the 5th year subsequent to first 4 years should be deemed to have completed continuous service of 5 years and is entitled to Gratuity. By this analogy, your this employee is eligible for Gratuity. The Madras HC also distinguished the earlier ruling of Andhra Pradesh High Court wherein it was held that an employee who has worked for 4 years and 11 months and 10 days having not completed five years of service will not be entitled to Gratuity (Mettur Bearsell Ltd (represented by its Personnel Manager, Madras vs Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad HC)
Given the argument, it will be prudent to pay Gratuity to this employee.
Rahul
09968270580
__________________________________________________ _______________________
Eligibility for Gratuity Payment
One of Employee joined our organization on 1st April 2004 on probation and Confirmed on 1st Oct.2005, now he is given resignation letter on 1st March 2009 with mentioned consider his one month notice period as per terms & condition of appointment letter. The same resignation letter is accepted by management and relieved him with immediate effect ie.on 2nd March 2009.
In his Appointment letter mentioned clause : - On confirmation, your services can be terminated by one month’s notice or wages/salary in lieu of notice. Similarly, you can relinquish your services by giving one month’s notice in writing or one month’s wages/salary in lieu of notice.
Till date we have not prepare his full and final dues. My question is that whether he is eligible for Gratuity Payment?
Kindly give your suggestion Please.
Regards
Abhay
From India, New Delhi
Gratuity accrues to an employee from the date of his joining your organization irrespective of his confirmation date and is payable within 30 days from the date it becomes payable.
The management has its prerogative of releasing / short-changing an employee any time it deems fit during the notice period. However, it is obligated to pay his "full salary + benefits (+ perks, if any) for the full notice period since as per the terms & conditions of his employment, he has shown his willingness to serve the Company for the one month's notice period. Law, strictly speaking, will view him to be working during his notice period.
The only exception will be in case the employer can justify the short-change in notice period and immediate relieving on some genuine & adequate reasons showing that his continuance is detrimental and will hinder business (usually difficult to prove unless blatant)
As regards Gratuity eligibility, he will be better served in completing 5 years of continuous service as under the Act. If he is forced to leave by an immediate relieving, on paper he is not eligible for Gratuity. However, law will view it otherwise in case of a litigation given that he was forced to exit and his Gratuity stands payable.
In simple words, if he goes for a litigation, he may be restored his Gratuity if malafide intentions of the employer are established. If not, the employer may get away. This is indeed a tricky technical issue.
Legally, given the circumstances, it may be held that a forced-resignation/forced early cessation of service without good reasons will tantamount to it being retrenchment of sorts and, therefore, it is immaterial that the termination is ocassioned by the need to discharge surplus manpower.
It has been held by the Supreme Court that retrenchment of employees will fall within the scope of Section 4(1) of the Payment of Gratuity Act and a retrenched employee will be entitled to Gratuity in such a borderline case.
Generally, however, it has been established that an employee satisfying conditions of length of service and salary limit will be entitled to gratuity even if he is resigning from service as also confirmed by the Delhi High Court (Texmaco Ltd. vs Ram Dhan 1992 LLR 369 (Del HC). Gratuity payable cannot even be stalled under SICA or financial difficulties of the employer.
Do note that the Madras HC has held that an employee rendering continuous service for a period of 240 days in a year. i.e. the 5th year subsequent to first 4 years should be deemed to have completed continuous service of 5 years and is entitled to Gratuity. By this analogy, your this employee is eligible for Gratuity. The Madras HC also distinguished the earlier ruling of Andhra Pradesh High Court wherein it was held that an employee who has worked for 4 years and 11 months and 10 days having not completed five years of service will not be entitled to Gratuity (Mettur Bearsell Ltd (represented by its Personnel Manager, Madras vs Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad HC)
Given the argument, it will be prudent to pay Gratuity to this employee.
Rahul
09968270580
__________________________________________________ _______________________
Eligibility for Gratuity Payment
One of Employee joined our organization on 1st April 2004 on probation and Confirmed on 1st Oct.2005, now he is given resignation letter on 1st March 2009 with mentioned consider his one month notice period as per terms & condition of appointment letter. The same resignation letter is accepted by management and relieved him with immediate effect ie.on 2nd March 2009.
In his Appointment letter mentioned clause : - On confirmation, your services can be terminated by one month’s notice or wages/salary in lieu of notice. Similarly, you can relinquish your services by giving one month’s notice in writing or one month’s wages/salary in lieu of notice.
Till date we have not prepare his full and final dues. My question is that whether he is eligible for Gratuity Payment?
Kindly give your suggestion Please.
Regards
Abhay
From India, New Delhi
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