One of our workmen joined our company in the year 1980 and retired in the year 2018. He did not work during the period 2015-18, though he was coming to duties. He was simply sitting and going back. He did not heed the instructions of his superiors to work. The same was recorded in the log books of the respective section also.
He was not paid any wages for that period on the principle of NO WORK NO PAY. He approached the court, and the court also ruled in favor of the company by upholding the action of the company in not paying the wages on the principle of NO WORK NO PAY.
Now the question is:
1. Whether to pay gratuity for the period from 2015 to 2018 during which he did not work though reported to duties and was not paid any wages.
2. Whether that period is said to be a continuous service under Section 2A of the Payment of Gratuity Act 1972.
I request my colleagues to advise on the above queries.
From Singapore, Singapore
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1He was not paid any wages for that period on the principle of NO WORK NO PAY. He approached the court, and the court also ruled in favor of the company by upholding the action of the company in not paying the wages on the principle of NO WORK NO PAY.
Now the question is:
1. Whether to pay gratuity for the period from 2015 to 2018 during which he did not work though reported to duties and was not paid any wages.
2. Whether that period is said to be a continuous service under Section 2A of the Payment of Gratuity Act 1972.
I request my colleagues to advise on the above queries.
From Singapore, Singapore
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Dear,
On the above query, kindly let me know:
1. Did he get the salary slip for the year 2015-2018?
2. If yes, then what have you written on present days?
For more clarification, do not hesitate to contact me via phone.
From United Arab Emirates, Dubai
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On the above query, kindly let me know:
1. Did he get the salary slip for the year 2015-2018?
2. If yes, then what have you written on present days?
For more clarification, do not hesitate to contact me via phone.
From United Arab Emirates, Dubai
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The whole matter can be resolved by careful reading of Sec 2A and 4 of the Payment of Gratuity Act 1972.
Here, with the brief facts mentioned in the query, the individual is entitled to gratuity even for the period of no pay, no work.
When the employee was reporting for work but did no work, a show-cause notice should have been given, and disciplinary action taken.
It is my opinion that he is entitled to gratuity for the period of no work, as stated by the company.
From India, Pune
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Here, with the brief facts mentioned in the query, the individual is entitled to gratuity even for the period of no pay, no work.
When the employee was reporting for work but did no work, a show-cause notice should have been given, and disciplinary action taken.
It is my opinion that he is entitled to gratuity for the period of no work, as stated by the company.
From India, Pune
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(Fact Check Failed/Partial)-The user's reply is incorrect. According to the Payment of Gratuity Act 1972, gratuity is not payable for the period in which an employee has not worked and has not been paid wages. There is no entitlement to gratuity for the period of "no work, no pay." It is essential to adhere to the provisions of the Act.
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Dear Sir, Greetings!!! Enclosed herewith some explanation circular of Food corporation of India for their employees to avoid issues. might this will solve your problem.
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The user reply does not address the specific legal questions raised regarding gratuity and continuous service under the Payment of Gratuity Act 1972. Please refer to relevant labor laws and the original post for accurate guidance.
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Dear colleague,
The company should have gone on record to convey to the worker, after the court order upholding his absence on a no-work, no-pay basis, that his service for that period is treated as a break in service and will not be counted as continuous service for the purpose of gratuity. It would have strengthened the stance of treating that period as a break in service and making it a disqualification for receiving gratuity for that period. In the absence of such a record, it is disputable to treat that period as a disqualification to receive gratuity.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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The company should have gone on record to convey to the worker, after the court order upholding his absence on a no-work, no-pay basis, that his service for that period is treated as a break in service and will not be counted as continuous service for the purpose of gratuity. It would have strengthened the stance of treating that period as a break in service and making it a disqualification for receiving gratuity for that period. In the absence of such a record, it is disputable to treat that period as a disqualification to receive gratuity.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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(Fact Check Failed/Partial)-[The user's reply is incorrect. According to the Payment of Gratuity Act 1972, if an employee has been in continuous service for at least five years, any interruption in service due to the employee being on duty but not working, does not break the continuity of service. Therefore, the period from 2015 to 2018 should be considered as continuous service for the purpose of gratuity. The court ruling on 'no work, no pay' does not affect the entitlement to gratuity.]
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I am just wondering under what circumstances a workman could be on the rolls of the company during the period 2015-18, even though he was reporting for duty but was simply sitting idle and then going back. What was recorded in the attendance register so far? How was his presence accounted for in all returns and registers under various Acts/Rules?
From India, Madras
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From India, Madras
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(Fact Checked)-The user's reply raises valid questions regarding the workman's presence, records, and compliance with various Acts/Rules during the period of 2015-18. It's crucial to ensure all aspects are documented correctly. (1 Acknowledge point)
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Dear colleague,
As per the information provided by you, the workman is not entitled to gratuity under the condition of a service break. However, he is eligible as your establishment did not terminate him on the grounds of long absence and allowed him to retire upon attaining the required age.
Overall, he is not eligible due to a three-year break in service as he has not maintained regular attendance. The workman can be denied gratuity based on this break in service. The individual may choose to seek legal recourse in this matter.
Please let me know if you need further assistance or clarification.
Thank you.
From India, Mumbai
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As per the information provided by you, the workman is not entitled to gratuity under the condition of a service break. However, he is eligible as your establishment did not terminate him on the grounds of long absence and allowed him to retire upon attaining the required age.
Overall, he is not eligible due to a three-year break in service as he has not maintained regular attendance. The workman can be denied gratuity based on this break in service. The individual may choose to seek legal recourse in this matter.
Please let me know if you need further assistance or clarification.
Thank you.
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. According to the Payment of Gratuity Act 1972, if an employee has completed 5 years of continuous service, any interruption due to sickness, authorized leave, etc., should not break the continuity of service. Therefore, the workman may still be eligible for gratuity even during the period of 2015-2018.
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Dear Mr. Kumar,
I fully agree with the views of Mr. Nathrao. The gratuity to an employee is made based on the ‘continuous service’ rendered by him. This continuity of service is calculated keeping in view the provision of Section 2A of the Payment of Gratuity Act, 1972. According to this section, an employee renders uninterrupted service even if his service is interrupted by sickness, accident, absence from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the fault of the employee.
However, an order has been passed by the management in accordance with the Standing Orders, rules or regulations governing the employee of the establishment, treating his absence as break in service, then the period covered under such order shall not be countable towards his continuous service and thus, such period shall be liable to be deducted from his total service period.
As per the facts stated by you in the opening paragraph of your query, he was liable to disciplinary action for not carrying out the work as per the directions of his superiors. Even an order of ‘No Work No Wages’ was passed against him the court. However, the management failed to issue an order in writing regarding his break in service. Therefore, his service would be countable and his gratuity would be payable to him till 2018 as per the provisions laid down in section 2A of the Payment of Gratuity Act, 1972.
Best wishes and regards.
From India, Chandigarh
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I fully agree with the views of Mr. Nathrao. The gratuity to an employee is made based on the ‘continuous service’ rendered by him. This continuity of service is calculated keeping in view the provision of Section 2A of the Payment of Gratuity Act, 1972. According to this section, an employee renders uninterrupted service even if his service is interrupted by sickness, accident, absence from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the fault of the employee.
However, an order has been passed by the management in accordance with the Standing Orders, rules or regulations governing the employee of the establishment, treating his absence as break in service, then the period covered under such order shall not be countable towards his continuous service and thus, such period shall be liable to be deducted from his total service period.
As per the facts stated by you in the opening paragraph of your query, he was liable to disciplinary action for not carrying out the work as per the directions of his superiors. Even an order of ‘No Work No Wages’ was passed against him the court. However, the management failed to issue an order in writing regarding his break in service. Therefore, his service would be countable and his gratuity would be payable to him till 2018 as per the provisions laid down in section 2A of the Payment of Gratuity Act, 1972.
Best wishes and regards.
From India, Chandigarh
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(Fact Check Failed/Partial)-The user's reply is incorrect. The Payment of Gratuity Act, 1972 does not consider the period of unauthorized absence from work to be countable towards continuous service for gratuity calculation. The fact that the employee did not follow instructions and did not work during 2015-2018, even with a 'No Work No Pay' order, would likely break the continuity of service for gratuity calculation.
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Dear Sir,
I have just joined a partnership firm as an HR executive. The management of the firm now wants to implement gratuity for their employees and asked me how to effect the same from this month. Please guide.
Ashok
From India, Cuttack
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I have just joined a partnership firm as an HR executive. The management of the firm now wants to implement gratuity for their employees and asked me how to effect the same from this month. Please guide.
Ashok
From India, Cuttack
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(Fact Check Failed/Partial)-The user's reply is incorrect. It does not address the specific scenario of implementing gratuity for an employee who did not work during a certain period and the legal implications involved.
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(Fact Check Failed/Partial)-The user reply does not address the key legal aspects of the situation regarding payment of gratuity for the period of non-working but reported duty. The focus on salary slips is not relevant to the legal considerations involved here.