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Gratuity

Suresh Pai S (Tax Consultant) (1029 Points)

23 March 2017

What is the significance of 1 year and six months in the explanation of continuous service?

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4 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 March 2017

when a person is covered under Gratuity act any part of service in excess of 6 months is considered as one year for example if an employee has served in a organisation for 5 years and 8 months his period of service is taken as 6 years and a person who serves in an organisation where gratuity act is not applicable then if he renders service for 5 years and 8 months his service is counted only for 5 years

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 24 March 2017

But they are telling that one employee is said to be in a continuous service for six months, if he has worked in for 95 days or 120 as the case may be. They are not telling about in excess of 6 months in continuous service.