Dear All,
When i attended one interview interviewer asked me that One employee has worked for 4 years 8 months. Is he eligible for gratuity .
I answered no. He challenged me saying my answer is wrong
I explained the concept above six months shall be considered as one year is only for determining the calculation not for determining the eligibility.
He disagreed with the concept.
How will you answer and justify . please tell me friends
Regards
Carmel
From India, Mumbai
1When i attended one interview interviewer asked me that One employee has worked for 4 years 8 months. Is he eligible for gratuity .
I answered no. He challenged me saying my answer is wrong
I explained the concept above six months shall be considered as one year is only for determining the calculation not for determining the eligibility.
He disagreed with the concept.
How will you answer and justify . please tell me friends
Regards
Carmel
From India, Mumbai
Dear Carmel
My answer to the query would be YES. Under the Gratuity Act, the prime requirement for a perosn to eligible for Gratuity is that he must have served for 5 years. Now the question is as to how the period of 5 years has to be computed.
See Sec. 2A. Continuous Service.-
In the said section it has been provided that person would be said to be in continuous service 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-240 days {See Clause (a) of Sub sec (2) of Sec.2A}
Now, as per the question of the Interviewer the person has rendered 4 years and 8 months. We persume that he has rendered continuous service without any interuption. Thus he rendered five years of service and would be eligible for Gratuity.
There is one judgment on the subject as well.
Hope I am clear.
Regards
Further,
From India, Ludhiana
My answer to the query would be YES. Under the Gratuity Act, the prime requirement for a perosn to eligible for Gratuity is that he must have served for 5 years. Now the question is as to how the period of 5 years has to be computed.
See Sec. 2A. Continuous Service.-
In the said section it has been provided that person would be said to be in continuous service 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-240 days {See Clause (a) of Sub sec (2) of Sec.2A}
Now, as per the question of the Interviewer the person has rendered 4 years and 8 months. We persume that he has rendered continuous service without any interuption. Thus he rendered five years of service and would be eligible for Gratuity.
There is one judgment on the subject as well.
Hope I am clear.
Regards
Further,
From India, Ludhiana
Dear Puneet
The following cocepts make me to stand on my answer NO
1. Employee has worked only for 8 Months so 8 x 26 = 208 . It does not meet the days required for treating as continues service . complete service of 240 days are treated continues service
2. An employee who has worked for 4 years 11 months and 10 days not eligible for gratuity as decided in P. Raghavalu and Sons Vs Additional Labour Court, Andhra Pradesh, as the qualifying phrases ‘part thereof in excess of six months’ shall be taken only for calculation of gratuity and not for determining the eligibility of gratuity.
Regards
Mt.Carmel
From India, Mumbai
The following cocepts make me to stand on my answer NO
1. Employee has worked only for 8 Months so 8 x 26 = 208 . It does not meet the days required for treating as continues service . complete service of 240 days are treated continues service
2. An employee who has worked for 4 years 11 months and 10 days not eligible for gratuity as decided in P. Raghavalu and Sons Vs Additional Labour Court, Andhra Pradesh, as the qualifying phrases ‘part thereof in excess of six months’ shall be taken only for calculation of gratuity and not for determining the eligibility of gratuity.
Regards
Mt.Carmel
From India, Mumbai
Good Carmel,
What you told is correct.
240 days in a year is most important.
For example an employee works for 5 years and if he
has worked only 205 days in the third year,
he is not eligible for Gratuity.
I totally agree with you.
From India, Madras
What you told is correct.
240 days in a year is most important.
For example an employee works for 5 years and if he
has worked only 205 days in the third year,
he is not eligible for Gratuity.
I totally agree with you.
From India, Madras
Please let me know what should be consider while calculation? 4 years and 8 months or 4 years 11months 10days?
From India, Jamnagar
From India, Jamnagar
Dear Friends, Pl see the attached file. Give suggestions to the Govt of India to utilise this BIG money. My idea is to use the fund to pay India’s debts to World bank.
From India, Madras
From India, Madras
Dear Carmel, He is eligible for gratuity banifit because he is completed 4 years & 240 days and diclared by high court judement. Reagards A.K.Goyal
From India, New Delhi
From India, New Delhi
Dear Mr Punit and Mr Goyal Can you please share the judgement of highcourt on gratuity which clear the doubt of people regarding deciding the entitlment of gratuity Thanks Sunil Nipurte
From India, Pune
From India, Pune
Dear Shyam,
As as professional you are required to go by the spirit of the rules and not by the word of rules. Every rule is associated by some other rule or set of rules or orders, as no single rule can be treated as a complete rule to regulate the service of an employee/ worker.
As an employer, you have to allow a weekly off to a worker after every 6 days work. You have to pay wages also for the weekly off day, if he remained present for all the 6 days before the weekly off. If your office is closed on a weekly off day, you can't compel a worker to come to your office or factory on 7th day just to salute your locked office/factory.
Naturally, if you have paid wages for 240 days during 8 months' period in question, the worker has put service of 240 days and not 208 days, as per your interpretation.
On the other hand, if a worker was in employment with you even for more than 5 years, but in any one year out of those 5 years, he has not attended for the minimum of 240 days. SO WHAT IS YOUR INTERPRETATION ABOUT THIS CASE? Can he be treated to have completed 5 years of service for the purpose of eligibility of gratuity. Just rethink, if you would like to pay gratuity in that case.
From India, Delhi
As as professional you are required to go by the spirit of the rules and not by the word of rules. Every rule is associated by some other rule or set of rules or orders, as no single rule can be treated as a complete rule to regulate the service of an employee/ worker.
As an employer, you have to allow a weekly off to a worker after every 6 days work. You have to pay wages also for the weekly off day, if he remained present for all the 6 days before the weekly off. If your office is closed on a weekly off day, you can't compel a worker to come to your office or factory on 7th day just to salute your locked office/factory.
Naturally, if you have paid wages for 240 days during 8 months' period in question, the worker has put service of 240 days and not 208 days, as per your interpretation.
On the other hand, if a worker was in employment with you even for more than 5 years, but in any one year out of those 5 years, he has not attended for the minimum of 240 days. SO WHAT IS YOUR INTERPRETATION ABOUT THIS CASE? Can he be treated to have completed 5 years of service for the purpose of eligibility of gratuity. Just rethink, if you would like to pay gratuity in that case.
From India, Delhi
Dear Mr. Dhingra,
I still have doubt about the days calculation, which was narrated by you, in your reply. With regard to the calculation of the Days, for determining the days worked, we shall take only 26 days as per the said act.
Hence, I support our friend Carmel.
Thanks and regards
kiran
From India
I still have doubt about the days calculation, which was narrated by you, in your reply. With regard to the calculation of the Days, for determining the days worked, we shall take only 26 days as per the said act.
Hence, I support our friend Carmel.
Thanks and regards
kiran
From India
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