Employees who have completed 5 years of continuous years of service with the employer are eligible for gratuity. It is paid to them at the time of termination of employment either due to retirement, resignation, superannuation, disablement or death
If an employee works below the ground (e.g. mine), every year in which the employee works for more than 190 days in a year, is considered as 1 year. If the employee works above the ground, 240 working days in a year is taken as 1 year for gratuity calculation.
If the number of days the employee has worked in a year is less than prescribed above, it is ignored for gratuity payment calculation. For example, if an employee has worked for 4 years and 10 months, the duration is considered as 5 years and the employee will be eligible for gratuity. On the other hand if the employee has worked for 4 years and 5 months, it is treated as less than 5 years and no gratuity will be paid.
If an employee expires, gratuity is paid to him for the number of years he worked with the company irrespective of his tenure with the company.
If the employee becomes disabled due to an accident or illness, gratuity is paid to him for the number of years he worked with the company, irrespective of his tenure with the company.
If a person has been terminated from his job due to illegal activities like riot or violence or due to acts that are morally wrong, gratuity is not payable to him
07 February 2018
thanks for giving good information. But one of my consultant told that gratuity act is not applicable in your organisation. Is there any provision? if yes ok if not please give me documentary evidence
CAclubindia
