I have completed 4 years and 7 months of service. My DOJ is 29 Nov 2016, and my LWD is 30 June 2021.
I see under section 2A of the Gratuity Payment Act that I am eligible for gratuity based on my service of 4 years and 7 months. However, I am told by my organization that I am falling short of a few days as the eligibility is 4 years and 240 days.
Can someone please help correct my understanding?
From India, Badlapur
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I see under section 2A of the Gratuity Payment Act that I am eligible for gratuity based on my service of 4 years and 7 months. However, I am told by my organization that I am falling short of a few days as the eligibility is 4 years and 240 days.
Can someone please help correct my understanding?
From India, Badlapur
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What your organization says is correct because you have effectively completed 4 years 7 months and one day service only.
From India, Salem
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6108From India, Salem
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Dear Member,
Your organization is correct; you are not eligible for gratuity. Based on the details provided, your service period is 4 years and 214 days.
To be eligible for gratuity, you should have completed 5 years of uninterrupted service. However, in some court judgments, 240 days of service in the last year can be considered as a full year. For employees working below ground (such as in a mine), 190 days can be accepted.
I am unsure why you are referring to Section 2A in support of your statement.
As explained above by Umakanthan sir, you are not eligible for gratuity.
From India, Delhi
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Your organization is correct; you are not eligible for gratuity. Based on the details provided, your service period is 4 years and 214 days.
To be eligible for gratuity, you should have completed 5 years of uninterrupted service. However, in some court judgments, 240 days of service in the last year can be considered as a full year. For employees working below ground (such as in a mine), 190 days can be accepted.
I am unsure why you are referring to Section 2A in support of your statement.
As explained above by Umakanthan sir, you are not eligible for gratuity.
From India, Delhi
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Dear Sir,
Thanks for your prompt response.
As I see on gratuity payment act 2A(i)..4 years and 6 months is eligible as I worked in an IT organization with 5 working days a week.
Please suggest
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 3
***
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;
(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;
From India, Badlapur
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Thanks for your prompt response.
As I see on gratuity payment act 2A(i)..4 years and 6 months is eligible as I worked in an IT organization with 5 working days a week.
Please suggest
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 3
***
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;
(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;
From India, Badlapur
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Dear Binu,
I don't know what prevents many questioners like you from giving complete details of your employment in the queries raised instead of in installments. As per your additional input, you are eligible for gratuity under the Payment of Gratuity Act, 1972.
From India, Salem
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I don't know what prevents many questioners like you from giving complete details of your employment in the queries raised instead of in installments. As per your additional input, you are eligible for gratuity under the Payment of Gratuity Act, 1972.
From India, Salem
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Dear Umakanthan Sir,
Please accept my apologies. I am new to this and really appreciate your prompt response. I can't have it from anyone better than you on this subject.
While I have written to my organization about this, the retirals team rejected my claim. I have re-raised my claim with supporting clause from 2A (i). My HR has now informed me that they will review and revert in 2 weeks. In the event they still reject it, what should I do?
From India, Badlapur
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Please accept my apologies. I am new to this and really appreciate your prompt response. I can't have it from anyone better than you on this subject.
While I have written to my organization about this, the retirals team rejected my claim. I have re-raised my claim with supporting clause from 2A (i). My HR has now informed me that they will review and revert in 2 weeks. In the event they still reject it, what should I do?
From India, Badlapur
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In case of continued refusal by the employer on the basis of misinterpretation, you can file a claim before the Controlling Authority under the Act for the area where you worked last and get the amount with 10% of simple interest for the period of default.
From India, Salem
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From India, Salem
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Thanks a lot Umakanthan Sir..appreciate all your guidance
From India, Badlapur
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From India, Badlapur
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Dear Umakanthan Sir,
My organization has responded as below. I had 5 working days a week, and in fact, most people in our organization had the same schedule. I worked for Capgemini in Mumbai. However, their response states that I am not eligible.
With regard to your query below, appended is our response:
In the present case, as informed, you have worked for 4 years and 234 days.
Capgemini follows the calculation of 4 years 240 days, considering that our organization is functional for 7 days a week. You have been referring to a calculation where organizations function for less than 6 days a week.
Therefore, the calculation shared is not applicable to our business.
In view of the same, as per the Gratuity Act, please note that you are not eligible for gratuity as you have not completed the statutory requirement of 4 years 240 days, and any exception approval does not apply.
Regards.
From India, Badlapur
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My organization has responded as below. I had 5 working days a week, and in fact, most people in our organization had the same schedule. I worked for Capgemini in Mumbai. However, their response states that I am not eligible.
With regard to your query below, appended is our response:
In the present case, as informed, you have worked for 4 years and 234 days.
Capgemini follows the calculation of 4 years 240 days, considering that our organization is functional for 7 days a week. You have been referring to a calculation where organizations function for less than 6 days a week.
Therefore, the calculation shared is not applicable to our business.
In view of the same, as per the Gratuity Act, please note that you are not eligible for gratuity as you have not completed the statutory requirement of 4 years 240 days, and any exception approval does not apply.
Regards.
From India, Badlapur
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Dear Binu,
An organization may function 24x7 and therefore 365 days in a year. But what is important is only the weekly work schedule of the employee as per the contract of employment or service regulations. When the employee is required to work only for 5 days in a week and allowed 2 days as weekly holidays, the entire weekly holidays have to be treated as the days worked for the purpose of continuous service under the PGA, 1972. Here the term "days worked" cannot be the days the employee works with hammer and chisel or pen and paper. That's why the number of days for calculation is reduced from 240 to 190 days.
The contention of your management seems intelligent based on the literal meaning of the relevant phrase but rather untenable. While interpreting the provisions of any Social Security Legislation like the PGA, 1972, only the rule of beneficial construction has to be adopted and not a literal interpretation. Better write back to the management that if they do not come forward to pay the amount of gratuity, you would be constrained to file a claim before the C.A under the Act for the amount due with interest and costs.
From India, Salem
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An organization may function 24x7 and therefore 365 days in a year. But what is important is only the weekly work schedule of the employee as per the contract of employment or service regulations. When the employee is required to work only for 5 days in a week and allowed 2 days as weekly holidays, the entire weekly holidays have to be treated as the days worked for the purpose of continuous service under the PGA, 1972. Here the term "days worked" cannot be the days the employee works with hammer and chisel or pen and paper. That's why the number of days for calculation is reduced from 240 to 190 days.
The contention of your management seems intelligent based on the literal meaning of the relevant phrase but rather untenable. While interpreting the provisions of any Social Security Legislation like the PGA, 1972, only the rule of beneficial construction has to be adopted and not a literal interpretation. Better write back to the management that if they do not come forward to pay the amount of gratuity, you would be constrained to file a claim before the C.A under the Act for the amount due with interest and costs.
From India, Salem
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