Respected Seniors,
I have come across a case of long absenteeism in a mining industry where the employee was absent for an extended period, leading to the management dismissing him from the company's roster. In this scenario, is the employee eligible to receive the gratuity amount considering he has completed five years with the company?
Thanks & Regards,
Priyanka Prasad
Asst. Manager
Email: divyankaprasad29@gmail.com
From India, Ranaghat
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I have come across a case of long absenteeism in a mining industry where the employee was absent for an extended period, leading to the management dismissing him from the company's roster. In this scenario, is the employee eligible to receive the gratuity amount considering he has completed five years with the company?
Thanks & Regards,
Priyanka Prasad
Asst. Manager
Email: divyankaprasad29@gmail.com
From India, Ranaghat
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Absenteeism is not a reason to withhold the gratuity. Gratuity shall only be forfeited when the employee has been dismissed for an offense involving moral turpitude or has caused monetary loss to the company through a violent act. In this case, none of these parameters, as described in section 4(6), are found. Therefore, he is entitled to receive gratuity for the service he has rendered. If his absence has not been regularized, of course, you need not count it as service. However, if the remaining period qualifies for gratuity, he should be paid gratuity accordingly.
Madhu.T.K
From India, Kannur
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4470Madhu.T.K
From India, Kannur
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Hello Priyanka,
Entitlement of terminal benefits on dismissal depends on the (i) Company policy, (ii) Clauses stipulated in the certified standing orders of the company, and (iii) Terms & conditions of the appointment letter or the contract. Normally in Govt services, an employee loses all his terminal benefits except the PF accumulations. I agree with Sh. Madhuji that such cases are not covered under Section 4(6) of the PG Act, 1972.
It may be true that the individual may have completed five years with the company, but you need to verify the fact that despite being a habitual absentee, whether he has actually worked for 240 days in a period of twelve calendar months (190 days if the individual is employed below the ground in a mine). I am sure he may not qualify for the criteria of actual working days. In that case, you can certainly debar him from the benefits enshrined under the PG Act, 1972, and the rules made thereunder.
BS Kalsi
From India, Mumbai
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Entitlement of terminal benefits on dismissal depends on the (i) Company policy, (ii) Clauses stipulated in the certified standing orders of the company, and (iii) Terms & conditions of the appointment letter or the contract. Normally in Govt services, an employee loses all his terminal benefits except the PF accumulations. I agree with Sh. Madhuji that such cases are not covered under Section 4(6) of the PG Act, 1972.
It may be true that the individual may have completed five years with the company, but you need to verify the fact that despite being a habitual absentee, whether he has actually worked for 240 days in a period of twelve calendar months (190 days if the individual is employed below the ground in a mine). I am sure he may not qualify for the criteria of actual working days. In that case, you can certainly debar him from the benefits enshrined under the PG Act, 1972, and the rules made thereunder.
BS Kalsi
From India, Mumbai
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