Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Gratuity Payble

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2010 Good Morning all Experts,

If a person completed 4 years 9 months 20 days in a company and left the job is liable for Gratuity or not.

Thanks for your time.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

21 October 2010 Rounding off of fraction of an year to a completed year is only for the purpose of calculating eligibilty. But for payment of gratuity 5 years tenure has to be counted with out the rouding off method. Courts have repeatedly said that in the case of fraction of an year to be converted to a completed year, the employee must have worked not less than 240 days in that fraction year. In other words an employee who is in continues service of not less than 4 years 8 months and 5 days will only get the benefit of the Payment of Gratuity Act,1972.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now