Respected HR experts,
I found a different case of Gratuity. A person was recently asked for gratuity upon resigning from his job.
I am sharing his tenure calculation:
Date of Joining: 17.11.2016, and Date of Exit: 30.11.2021, Service Years: 5.04 years (from DOJ to DOE)
His attendance details: F.Y. 2016-2017: 4 months, F.Y. 2017-2018: 11 months, F.Y. 2018-2019: 12 months, F.Y. 2019-2020: 10 months, F.Y. 2020-2021: 10 months, F.Y. 2021-2022: 8 months (up to 30.11.2021)
So, the total work month is 55 months which means 4.6 years. However, the service period is 5.04 years (including absence).
Please tell me if he is eligible for gratuity or not?
From India, Thane
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1I found a different case of Gratuity. A person was recently asked for gratuity upon resigning from his job.
I am sharing his tenure calculation:
Date of Joining: 17.11.2016, and Date of Exit: 30.11.2021, Service Years: 5.04 years (from DOJ to DOE)
His attendance details: F.Y. 2016-2017: 4 months, F.Y. 2017-2018: 11 months, F.Y. 2018-2019: 12 months, F.Y. 2019-2020: 10 months, F.Y. 2020-2021: 10 months, F.Y. 2021-2022: 8 months (up to 30.11.2021)
So, the total work month is 55 months which means 4.6 years. However, the service period is 5.04 years (including absence).
Please tell me if he is eligible for gratuity or not?
From India, Thane
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Dear Pankaj,
I think that you have to recheck your calculation.
From the actual date of joining i.e. 17-11-2016 till the actual date of relieving on resignation i.e. 30-11-2021 as per your post, the employee's total length of continuous service, including absence, if any, would be exactly 5 years and 13 days only. The number of days of unauthorized absence, if any, has to be included in the continuous service for gratuity, if not already declared as a break in service as per the standing orders or service regulations of the establishment. For the purpose of computing continuous service under the Payment of Gratuity Act, 1972, you may refer to section 2-A of the Act.
Therefore, the employee is eligible and entitled to gratuity for 5 years of continuous service.
From India, Salem
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I think that you have to recheck your calculation.
From the actual date of joining i.e. 17-11-2016 till the actual date of relieving on resignation i.e. 30-11-2021 as per your post, the employee's total length of continuous service, including absence, if any, would be exactly 5 years and 13 days only. The number of days of unauthorized absence, if any, has to be included in the continuous service for gratuity, if not already declared as a break in service as per the standing orders or service regulations of the establishment. For the purpose of computing continuous service under the Payment of Gratuity Act, 1972, you may refer to section 2-A of the Act.
Therefore, the employee is eligible and entitled to gratuity for 5 years of continuous service.
From India, Salem
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From the data given in the query, it is amply clear that the workman has completed 'continuous service' of more than 5 years and is eligible for gratuity. This is so because absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment) is to be treated as continuous service as per Section 2A of the PGA 1972.
From India, Mumbai
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From India, Mumbai
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It is sad but true that many do not understand the Process of Absence - Unauthorized and Authorized. The Authorized Absence is called LEAVE - If Leave Applied is not Approved, that should be intimated to the employee. But at the first instance, particularly in IT or ITES establishments, the HR must take the lead in explaining the Leave Procedures, and if rejected, the Leave Sanctioning Authority must communicate his decision. He can't shirk his responsibility and later claim that he had not sanctioned Leave.
From India, Chennai
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From India, Chennai
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There is a similar case with a friend of mine in which after a period of 4 years and 8 months, there are very flawed HR policies that favor the management over the employees. The employee had a minor quarrel with his superior and did not use any abusive language nor engage in violence, but the HR called the language as being "unprofessional" and suspended him for 15 days. After that, he continued in service for 3 more years. When the employee rejoined, there was no change in employment status nor was he terminated and rehired. However, the company argues that it resulted in a break in service, and therefore he is not eligible for gratuity. Is there any legal validity in this?
From India
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From India
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Mere break in service is not sufficient to deny gratuity in an otherwise continuous service. As per Section 2A, service, though interrupted, has to be counted unless an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment. According to the query, such an order has not been passed, and the facts show there is continuity, so the employee has every right to claim gratuity.
From India, Mumbai
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From India, Mumbai
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf