Dear Folks,
One of our staff has completed 15 years of service, but he has not been regular for the past year. His average number of present days during the 15th year of his service is 15 days. He has now resigned. When calculating his gratuity, how should we consider his last month's salary since he did not work for the entire month?
Regards
From India, Ottappalam
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9One of our staff has completed 15 years of service, but he has not been regular for the past year. His average number of present days during the 15th year of his service is 15 days. He has now resigned. When calculating his gratuity, how should we consider his last month's salary since he did not work for the entire month?
Regards
From India, Ottappalam
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Hi,
Please refer the following
Five years continuous service: An employee in order to be eligible to claim gratuity, should have worked with a particular employer for at least five years
Section 2A of the Gratuity Act, states that ‘continuous period’ shall also include the following:
If in case employee is not in continuous service of one year, he/she shall be deemed to be in continuous service of one year if- he/she has, in immediately preceding twelve calendar months, worked under the employer for not less than:
190 Days (in case of employee employed in mines below ground)
190 Days (in case if employee employed in an establishment which works for less than six days in a week)
240 Days ( in any other case)
If in case employee is not in continuous service of six months, he/she shall be deemed to be in continuous service of six months if- he/she has, immediately preceding six calendar months, worked under the employer for not less than:
95 Days (in case of employee employed in mines below ground)
95 Days (in case if employee employed in an establishment which works for less than six days in a week)
120 Days ( in any other case)
If an employee of seasonal establishment is not in continuous service of twelve or six months, he/she shall be deemed to be in continuous service of twelve or six months; if he/she actually worked for not less than seventy five percent of the number of days on which the establishment was in operation during such period.
By continuous service for the purpose of gratuity it is meant uninterrupted service which may be interrupted due to accident, sickness, absence for duty without any leave, leave, lay-off, lock-out, strike or cessation of work (due to not any fault of the employee) are considered as continuous service.
Following days shall also be included while calculating the actual days of an employee has worked for:
If an employee has been laid-off under an agreement
If an employee has been on leave with full wages
If an employee has been absent on his duty due to temporary disablement caused by an accident arising out of and in the course of his employment
Maternity leave for female employee, not more than twelve weeks
From India, Madras
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Please refer the following
Five years continuous service: An employee in order to be eligible to claim gratuity, should have worked with a particular employer for at least five years
Section 2A of the Gratuity Act, states that ‘continuous period’ shall also include the following:
If in case employee is not in continuous service of one year, he/she shall be deemed to be in continuous service of one year if- he/she has, in immediately preceding twelve calendar months, worked under the employer for not less than:
190 Days (in case of employee employed in mines below ground)
190 Days (in case if employee employed in an establishment which works for less than six days in a week)
240 Days ( in any other case)
If in case employee is not in continuous service of six months, he/she shall be deemed to be in continuous service of six months if- he/she has, immediately preceding six calendar months, worked under the employer for not less than:
95 Days (in case of employee employed in mines below ground)
95 Days (in case if employee employed in an establishment which works for less than six days in a week)
120 Days ( in any other case)
If an employee of seasonal establishment is not in continuous service of twelve or six months, he/she shall be deemed to be in continuous service of twelve or six months; if he/she actually worked for not less than seventy five percent of the number of days on which the establishment was in operation during such period.
By continuous service for the purpose of gratuity it is meant uninterrupted service which may be interrupted due to accident, sickness, absence for duty without any leave, leave, lay-off, lock-out, strike or cessation of work (due to not any fault of the employee) are considered as continuous service.
Following days shall also be included while calculating the actual days of an employee has worked for:
If an employee has been laid-off under an agreement
If an employee has been on leave with full wages
If an employee has been absent on his duty due to temporary disablement caused by an accident arising out of and in the course of his employment
Maternity leave for female employee, not more than twelve weeks
From India, Madras
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Dear Mohandas,
I believe your concerns regarding the last drawn salary and the inclusion of the employee's last year's service for computing the gratuity of an employee who exhibited irregular attendance during the fifteenth year of service due to resignation stem from two main reasons: (a) his actual last drawn salary in the final month of service was less than a full month's salary due to his absence, and (b) his attendance was sporadic in the 15th year, averaging only 15 days per month.
I also assume that you have carefully reviewed the detailed response provided by our knowledgeable colleague V.M.L regarding the calculation of continuous service in accordance with section 2-A of the Payment of Gratuity Act, 1972.
Nonetheless, I would like to add the following points to facilitate a clearer understanding of the situation you have described:
(i) Upon reading the explanation to the proviso of subsection (2) of section 4 of the Act, it becomes evident that it is not the actual last drawn wages but the rate of last-drawn wages that must be considered for gratuity calculations.
(ii) Any unauthorized absence from duty without leave should have been treated as a break in service by the employer under the applicable standing orders or service regulations. Failure to do so would necessitate its inclusion for the purpose of continuous service as outlined in section 2-A.
Thank you.
From India, Salem
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I believe your concerns regarding the last drawn salary and the inclusion of the employee's last year's service for computing the gratuity of an employee who exhibited irregular attendance during the fifteenth year of service due to resignation stem from two main reasons: (a) his actual last drawn salary in the final month of service was less than a full month's salary due to his absence, and (b) his attendance was sporadic in the 15th year, averaging only 15 days per month.
I also assume that you have carefully reviewed the detailed response provided by our knowledgeable colleague V.M.L regarding the calculation of continuous service in accordance with section 2-A of the Payment of Gratuity Act, 1972.
Nonetheless, I would like to add the following points to facilitate a clearer understanding of the situation you have described:
(i) Upon reading the explanation to the proviso of subsection (2) of section 4 of the Act, it becomes evident that it is not the actual last drawn wages but the rate of last-drawn wages that must be considered for gratuity calculations.
(ii) Any unauthorized absence from duty without leave should have been treated as a break in service by the employer under the applicable standing orders or service regulations. Failure to do so would necessitate its inclusion for the purpose of continuous service as outlined in section 2-A.
Thank you.
From India, Salem
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The employee is eligible for gratuity as they have completed 5 years of service. When calculating, pay only for the period (year) of continuous service. The calculation should be based on the basic wages that remained on the last working day of the employee.
From India, Mumbai
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From India, Mumbai
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