Hi,
Sir, My query is on the Payment of Gratuity Act. Can we consider the period of break that the employee took due to physical illness (heart attack) during the course of service (at the workplace)? An employee was admitted to the hospital due to a heart attack that occurred while working (at the time of rubber tapping), causing an absence of 9 months. The employee availed benefits such as reimbursement of medical bills. Can this period of break be considered a break in service?
Thank you.
From India, Pathanamthitta
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1Sir, My query is on the Payment of Gratuity Act. Can we consider the period of break that the employee took due to physical illness (heart attack) during the course of service (at the workplace)? An employee was admitted to the hospital due to a heart attack that occurred while working (at the time of rubber tapping), causing an absence of 9 months. The employee availed benefits such as reimbursement of medical bills. Can this period of break be considered a break in service?
Thank you.
From India, Pathanamthitta
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Certainly, such a break in service due to sickness of the employee culminating in an employment accident has to be treated as uninterrupted service as per Sec. 2-A(1) of the PGA, 1972 for the purpose of gratuity under the Act.
From India, Salem
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From India, Salem
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Hi,
As long as the employee remains on the company's payroll, there should not be an issue with the payment of gratuity, as highlighted by the knowledgeable senior member. It should not be considered a 'break' in service but rather a 'continuous' period of work.
Section 2a explains what should be considered as continuous service, even in cases of sickness, accidents, etc.
Thanks and Regards
From India, Hyderabad
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As long as the employee remains on the company's payroll, there should not be an issue with the payment of gratuity, as highlighted by the knowledgeable senior member. It should not be considered a 'break' in service but rather a 'continuous' period of work.
Section 2a explains what should be considered as continuous service, even in cases of sickness, accidents, etc.
Thanks and Regards
From India, Hyderabad
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As our learned member, Mr. Umakanthan rightly pointed, break-in service due to his major illness, should not be construed as "interrupted service".
I am also reproducing below the text of Sec 2(a) point no.1 to substantiate this:
A. 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 11 [***] treating the absence as break in service has been passed in accordance with the standing orders, 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;
From India, Aizawl
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I am also reproducing below the text of Sec 2(a) point no.1 to substantiate this:
A. 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 11 [***] treating the absence as break in service has been passed in accordance with the standing orders, 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;
From India, Aizawl
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Sir,
Gratuity is a gesture of thanks usually given by an employer to an employee for the services rendered to the management. It is a courtesy extended to show appreciation. Please do not scrutinize it too closely.
Despite his heart problems, he fulfilled his duties until his hospitalization. Hence, kindly continue paying the gratuity amount as usual based on his regular service without deducting the 9 months of his hospital stay. Medical reimbursements should not affect his gratuity; they are unrelated.
Maintain a liberal approach towards all your employees. There are many legal precedents supporting the payment of full gratuity without deductions for medical reimbursements. Please proceed, and best of luck.
In recent times, auditors have been increasingly involved in the interpretation of labor laws and deductions related to employee payments. HR departments are finding it challenging to persuade auditors.
Some auditors, perhaps for courtesy's sake, are introducing complex formulas for calculating working hours, daily wages, and adjusting holiday benefits, among other factors.
Excessive auditor involvement in employee welfare matters may lead to discontent and dissatisfaction among the employees.
Thank you.
From India, Nellore
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Gratuity is a gesture of thanks usually given by an employer to an employee for the services rendered to the management. It is a courtesy extended to show appreciation. Please do not scrutinize it too closely.
Despite his heart problems, he fulfilled his duties until his hospitalization. Hence, kindly continue paying the gratuity amount as usual based on his regular service without deducting the 9 months of his hospital stay. Medical reimbursements should not affect his gratuity; they are unrelated.
Maintain a liberal approach towards all your employees. There are many legal precedents supporting the payment of full gratuity without deductions for medical reimbursements. Please proceed, and best of luck.
In recent times, auditors have been increasingly involved in the interpretation of labor laws and deductions related to employee payments. HR departments are finding it challenging to persuade auditors.
Some auditors, perhaps for courtesy's sake, are introducing complex formulas for calculating working hours, daily wages, and adjusting holiday benefits, among other factors.
Excessive auditor involvement in employee welfare matters may lead to discontent and dissatisfaction among the employees.
Thank you.
From India, Nellore
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Your question is confusing. I believe that he has resigned from the services after 9 months of employment. If so, when did you accept his resignation? He has been affected in the workplace. Moreover, he has claimed all the medical bills (It seems that he is out of ESI Scheme). Hence, this period cannot be treated as a break in service.
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