I was working with an MNC from 11-Oct-2011 to 19-May-2017. In between I had availed Leave without Pay(LWP) which were duly approved by the organization. The number of LWP availed is 283 days as being told by HR. I have been told that I am not eligible for Gratuity as I should complete 4yrs and 190 days of services. As per my calculation I still complete the criteria. Can you please let me know if I am eligible for gratuity payment with LWP availed?
From India, Noida
From India, Noida
Dear Pallavi,
From your inputs, the following facts are discernible:
(a) Your total length of service from 11-10-2011 to 19-05-2017 = 5 years 7 months and 8 days.
(b) The authorised Leave on Loss of PAY is 283 days.
Therefore,
(1) You are eligible to claim gratuity since your total length of service in the organization from the date of entry to the date of exit is more than 5 years.
(2) You are also entitled to gratuity for the entire 283 days on LWP since it is authorised and as such would fall into "continuous service" as defined u/s 2-A of the Payment of Gratuity Act,1972.
By and large, you are entitled to gratuity for a continuous service of 6 years.
From India, Salem
6018From your inputs, the following facts are discernible:
(a) Your total length of service from 11-10-2011 to 19-05-2017 = 5 years 7 months and 8 days.
(b) The authorised Leave on Loss of PAY is 283 days.
Therefore,
(1) You are eligible to claim gratuity since your total length of service in the organization from the date of entry to the date of exit is more than 5 years.
(2) You are also entitled to gratuity for the entire 283 days on LWP since it is authorised and as such would fall into "continuous service" as defined u/s 2-A of the Payment of Gratuity Act,1972.
By and large, you are entitled to gratuity for a continuous service of 6 years.
From India, Salem
Hi
I m bit of confused in term of continues services as per gratuity act section 2A.
question
I joined an organization in the year of 2011 (2nd qtr) and in the year of 2015 (3rd qtr) I takes a leave without approval 8 month (LWP). My employer assume that I left the organization but I did not (in this 8 months no communication are done by mine or nor employer)
in the 2nd qtr of 2016 I rejoined the same organization on same T & C along with no increment policy
but due to sickness I left the organization in the 3rd qtr of 2019 cause I resigned
my employer say I m not eligible for gratuity
please advise
From India, New Delhi
I m bit of confused in term of continues services as per gratuity act section 2A.
question
I joined an organization in the year of 2011 (2nd qtr) and in the year of 2015 (3rd qtr) I takes a leave without approval 8 month (LWP). My employer assume that I left the organization but I did not (in this 8 months no communication are done by mine or nor employer)
in the 2nd qtr of 2016 I rejoined the same organization on same T & C along with no increment policy
but due to sickness I left the organization in the 3rd qtr of 2019 cause I resigned
my employer say I m not eligible for gratuity
please advise
From India, New Delhi
Hi Sir,
I have been working for 4.6 years.
My Joining Date:26/04/2017
My Last Date: 27/11/2021
Total Tenure: 215 days
I have Earned leave balance of 30 days
Can i add my leave balance to avail gratuity benefit of 240 days?
Please suggest.
From India, Hyderabad
I have been working for 4.6 years.
My Joining Date:26/04/2017
My Last Date: 27/11/2021
Total Tenure: 215 days
I have Earned leave balance of 30 days
Can i add my leave balance to avail gratuity benefit of 240 days?
Please suggest.
From India, Hyderabad
Dear friend, I have already answered this query in reply to your private message today. Sorry, you are not eligible.
From India, Salem
From India, Salem
Amber1348,
From what you have stated it looks like there is continuity in service from 2011 to 2019, but order of your resuming service 2016 is very important. It is to be critically examined from the Section 2A of PGA 1972 as to whether there is continuity or not. All related documents have to be legally examined before we can give a conclusive opinion.
From India, Mumbai
From what you have stated it looks like there is continuity in service from 2011 to 2019, but order of your resuming service 2016 is very important. It is to be critically examined from the Section 2A of PGA 1972 as to whether there is continuity or not. All related documents have to be legally examined before we can give a conclusive opinion.
From India, Mumbai
Dear Colleagues,
There are 2 aspects under Payment of Gratuity Act. Shared for your reading and understanding on this subject
2(b) "completed year of service" means continuous service for one year;
2[2] [(c) "continuous service" means continuous service as defined in section 2A;]
Payment of Gratuity Act, 1972Section: 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 [***] 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, 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;
Explanation: For the purpose 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 (14 of 1947), or under any other law applicab1c 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.
Take Care
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
9865151329
From India, Chennai
There are 2 aspects under Payment of Gratuity Act. Shared for your reading and understanding on this subject
2(b) "completed year of service" means continuous service for one year;
2[2] [(c) "continuous service" means continuous service as defined in section 2A;]
Payment of Gratuity Act, 1972Section: 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 [***] 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, 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;
Explanation: For the purpose 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 (14 of 1947), or under any other law applicab1c 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.
Take Care
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
9865151329
From India, Chennai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity-Leave calculation on CTC-Rev..xls
FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip