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Doubt in Gratuity

Statutory Audit 718 views 1 replies

Dear friends,

Gratuity is payable for every completed year of service (After end of 5 completed years)

As per the act,

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

My doubt is "If an employee has worked for less than 180 days after being eligible for gratuity and the absense in on account of leave.. Will gratuity be considered for the whole year/partly? and Is it the management discretion ?"

 

 

 

Replies (1)

In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. - - In case of seasonal establishment, gratuity is payable @ 7 days wages for each season. [section 4(2)].

in my views until he resign he is on service and that period can be calculated as period in service  


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