An employee works on a fixed-term contract of 2 years and is automatically terminated at the end of the contract. He joins afresh after 8 months as a permanent employee and has worked for 4 years. Is he entitled to gratuity? What are the other things he may be entitled to?
From India, Bengaluru
1From India, Bengaluru
The employee's tenure starting after the lapse of 8 months as a regular employee is a separate and fresh innings of service under the same employer. Therefore, if his service gets terminated just after 4 years that is before completing 240 days of service in the fourth year either on his own or otherwise he is not eligible to statutory gratuity. The other terminal benefit in case of such an exit on his own would be only the encashment of EL, if any at his credit.
From India, Salem
From India, Salem
I may add,
You have not mentioned whether he is terminated from service or resigned or still in service. For what purpose you require the clarifications w.r.t. to his entitlements?
The break of 8 months between the FTC & the permanent employment does not form a 'continuous service' for combining 2 + 4 yrs of 'continuous service' to be eligible for gratuity which is minimum of 5 yrs of continuous service. That apart, if he is being separated and if you wish to ignore the break of 8 months and combining 2+4 yrs for paying some ex-gratia (in whatever name you wish to pay), as a reward, I will have no objection. It's your discretion.
From India, Bangalore
You have not mentioned whether he is terminated from service or resigned or still in service. For what purpose you require the clarifications w.r.t. to his entitlements?
The break of 8 months between the FTC & the permanent employment does not form a 'continuous service' for combining 2 + 4 yrs of 'continuous service' to be eligible for gratuity which is minimum of 5 yrs of continuous service. That apart, if he is being separated and if you wish to ignore the break of 8 months and combining 2+4 yrs for paying some ex-gratia (in whatever name you wish to pay), as a reward, I will have no objection. It's your discretion.
From India, Bangalore
He has resigned from duty. The company is asking me to create FnF and thus I was asking. If he was terminated does that change anything?
Can you also help me in what are all the documents required for FnF. Is FnF and resignation letter sufficient or do I need to add any other documents?
From India, Bengaluru
Can you also help me in what are all the documents required for FnF. Is FnF and resignation letter sufficient or do I need to add any other documents?
From India, Bengaluru
If that's his service status, then Mr.Umakanthan already clarified reg.entitlement.
And no gratuity is accrued. Any notice or notice pay is involved ??
If termination: then you have to consider payment of Termination compensation @ 15 days salary for every completed year of service, to be fair enough (even if he is not covered under ID Act.). If possible gratuity as well.
Plus leave encashment, unpaid salary/bonus or ex-gratia, if any, in any case.
EPF & EPS settlement (if no transfer via Form 11 is involved). How old is he? Has he crossed 58 yrs.?
Is there any recoveries for Co advances like vehicle loan, House building loan etc. check that.
Retrieval of co's assets like laptop, mobile ph., vehicle & docs. data storage devices, books/files & documents, Co Quarters & furnitures.
Check for any bank loan endorsed by the Co. (as surety/2nd/co-obligant). And any departmental inquiry pending.
Obtain No due certificate from all depts.
Prepare Experience & Relieving letter, a detailed report of handing over & taking over charge (jointly to be signed by a person coming into his shoes), and a check list of assignments completed, in the pipeline, to be pursued mentioning the status, contact persons.
Better prepare a complete check list before processing & submission.
From India, Bangalore
And no gratuity is accrued. Any notice or notice pay is involved ??
If termination: then you have to consider payment of Termination compensation @ 15 days salary for every completed year of service, to be fair enough (even if he is not covered under ID Act.). If possible gratuity as well.
Plus leave encashment, unpaid salary/bonus or ex-gratia, if any, in any case.
EPF & EPS settlement (if no transfer via Form 11 is involved). How old is he? Has he crossed 58 yrs.?
Is there any recoveries for Co advances like vehicle loan, House building loan etc. check that.
Retrieval of co's assets like laptop, mobile ph., vehicle & docs. data storage devices, books/files & documents, Co Quarters & furnitures.
Check for any bank loan endorsed by the Co. (as surety/2nd/co-obligant). And any departmental inquiry pending.
Obtain No due certificate from all depts.
Prepare Experience & Relieving letter, a detailed report of handing over & taking over charge (jointly to be signed by a person coming into his shoes), and a check list of assignments completed, in the pipeline, to be pursued mentioning the status, contact persons.
Better prepare a complete check list before processing & submission.
From India, Bangalore
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc