Dear Seniors, An employee left service after completion of 5 years 8 months. Through his 5th year of service he was absent continuously for 06 months due to his personal reasons and no salary paid for this period.

In this case how we can calculate Gratuity. Under section 2A, an employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for one year. In this case, is the following calculation correct ?

Date of joining : 01.06.2008

Date of leaving : 28 Feb 2014

Absented himself without leave (without pay) : 6 months from 16.08.2012 to 28.02.2013

Total years of service = 1/6/2008 to 28/2/2014 , 5 yrs 9 months

minus - continuous absent period 06 months

hence total service 5 years 3 months.

Is it correct paying gratuity for 5 years? or is it mandatory to pay 6 years gratuity.

Sir, your immediate advice is very helpful.

From India, Bangalore
Dear Mohan,
Pl once again read Sec.2A(1) of the P.G Act,1972 carefully. The period of absence in the fifth year has to be taken into a/c as uninterrupted service because presumably you have not passed an order treating this period as break in service.

From India, Salem
rkn61
625

Dear Mr. Mohan,
If an employee, after putting continuous service of more than five years, proceeded on leave (long leave without pay), then his his period of absence from
duty can not be treated as break -in services. Whether this period of leave have already been sanctioned by management?
If so, please release his full gratuity payment from his date of joining upto his date of separation.
Thanks.
R K Nair

From India, Aizawl
kknair
199

Dear all: In calculating gratuity entlement, the total years of continuous service have to be reckoned from 28.02.14, the end date of employment, when gratuity became due and payable and worked backwards, i.e., 28.02.14 to 1.3.13, 28.02.13 to 01.03.12,28.02.12 to 01.03.11,28.02.11 to 01.03.10,28.02.10 to 01.03.09 & 28.02.09 to 01.03.08. The gratuity entitlement would be for each such year where he completes 240 days service including sanctioned leave, accident, lay off, or a lock out etc where there is no express order of interruption in service. Shri RK Nair has given correct interpretation of the legal provision. KK
From India, Bhopal
pls. let me know if a workman has done 15 years continuous service but was habitual absentee and did not complete 240 days of service including leaves etc. shall we be paying gratuity for those years.
secondly if he resigns form his services in december18 and has been remaining absent from september 18. shall we be paying gratuity of year 18 of his last year of service
regards
sanjay srivastava

From India, Noida
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.