I have worked for 4 years 210 days in my company. My company operates for 5 days a week. Now the question are two -
1. Is there a provision in gratuity act which entitle me for the gratuity as I read somewhere that people with more than 190 days in service are eligible if they are working under ground or company working days are less than 6 days
2. Does company has any discretion in deciding the gratuity eligibility in case the employee has served less than 5 years?
Request you to please suppport the answer through references to cases or act.
From India, Mumbai
1. Is there a provision in gratuity act which entitle me for the gratuity as I read somewhere that people with more than 190 days in service are eligible if they are working under ground or company working days are less than 6 days
2. Does company has any discretion in deciding the gratuity eligibility in case the employee has served less than 5 years?
Request you to please suppport the answer through references to cases or act.
From India, Mumbai
Dear Sankalpbaid,
You have worked for 4 years and 210 days. You are not eligible for Gratuity under the Payment of Gratuity Act since you have not completed 5 years of service.
Section 2(c) which deals with definition of continuous service, in explanation-I states that the employee is deemed to be in continuous service if he works for 190 days in case employed below the ground in a mine,or 240 days in case employed in other cases (i.e. 6 days working) except seasonal employment.
According to this section, if employee does not work or 190 days or 240 days as the case may be, he is not eligible for Gratuity for such year.
Act no where mentions on 5 days week but the proportion of 240 days per 6 days working comes to 190 days per 5 days working.
Company can have discretion in deciding the Gratuity eligibility in case the employee has served less than 5 years. You can give any thing more than Law.
Hope I have answered to your all queries.
From India, Mumbai
2556You have worked for 4 years and 210 days. You are not eligible for Gratuity under the Payment of Gratuity Act since you have not completed 5 years of service.
Section 2(c) which deals with definition of continuous service, in explanation-I states that the employee is deemed to be in continuous service if he works for 190 days in case employed below the ground in a mine,or 240 days in case employed in other cases (i.e. 6 days working) except seasonal employment.
According to this section, if employee does not work or 190 days or 240 days as the case may be, he is not eligible for Gratuity for such year.
Act no where mentions on 5 days week but the proportion of 240 days per 6 days working comes to 190 days per 5 days working.
Company can have discretion in deciding the Gratuity eligibility in case the employee has served less than 5 years. You can give any thing more than Law.
Hope I have answered to your all queries.
From India, Mumbai
Thanks for your feedback. However I have seen the act on the labour ministry website which gives 190 days flexibility. Below is the link. Is this wrong or is the act subsequently changed ?
http://labour.gov.in
From India, Mumbai
http://labour.gov.in
From India, Mumbai
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf