Dear Prrsarma,
I have not gone in detail the AP Shops and Commercial Establishments Act, and that is why I have this doubt. You have said that any employee leaving the service after 1 year will be getting service compensation. Is it so or is it that any person whose service is RETRENCHED is entitled to get this compensation worked out at the rate of 15 days pay for every completed year of service? The latter is similar to the retrenchment compensation as per Industrial Disputes Act, but the former is a clause which makes the employer to pay this amount even if the employee resigns and leave.
Madhu.T.K
From India, Kannur
4249I have not gone in detail the AP Shops and Commercial Establishments Act, and that is why I have this doubt. You have said that any employee leaving the service after 1 year will be getting service compensation. Is it so or is it that any person whose service is RETRENCHED is entitled to get this compensation worked out at the rate of 15 days pay for every completed year of service? The latter is similar to the retrenchment compensation as per Industrial Disputes Act, but the former is a clause which makes the employer to pay this amount even if the employee resigns and leave.
Madhu.T.K
From India, Kannur
In a very recent judgement, the Kerala High Court has ruled that in order to be eligible for gratuity, 4 years and 240 days in the fifth year is sufficient. The judgement in Sreeja Vs Regional Joint Labour Commissioner (2015 LLR 826) has considered the precedence in Madras High Court ruling in Mettur Beardsell Ltd Vs Regional labour Commissioner (1998 LLR 1072) in which the court had held that continuous service means 240 days in a period of 12 months and for entitlement of gratuity five years minimum service is not required and an employee who has rendered 240 days in the fifth year is deemed to have completed the fifth year and qualifies for gratuity. Since this was a High Court judgement many states (including Kerala) had not considered it as binding to their respective states.
In the case of establishments working for less than six days in a week, obviously, the qualifying days for continuous service is 190 days. This is inclusive of all paid days, like holidays, weekly off days, paid leave days and lay off days, if any.
Madhu.T.K
From India, Kannur
In the case of establishments working for less than six days in a week, obviously, the qualifying days for continuous service is 190 days. This is inclusive of all paid days, like holidays, weekly off days, paid leave days and lay off days, if any.
Madhu.T.K
From India, Kannur
Ok Thanks to infromations in Kerala Location... My Profile Payrolling and Legal Document regding so infromations to Trninig and Developement Infromations NILESH GOSWAMI Mehsana (Gujarat)
From India, Vadodara
From India, Vadodara
If the High Court ruling is that it is enough for an employee to work 4 years and 240 days, then the Gratuity Act has to be amended accordingly. Unfortunately, the ruling of the High Court is, in my opinion, not in accordance with the Law of the land. It is the result of a total misinterpretation on the part of the High Court.. I guess I might be hauled up in the court for that !!
From India, Kolkata
From India, Kolkata
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Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf
Gratuity Form I.doc