Calculation of years based on date of absorption or joining

Make sure that, Date of joining is same in all documents related to employment e.g.; joining report submitted on 1^st day in office, appointment letter, service card, I C.ard, salary slip, PF accumulation report/pass book, First Form 16 issued showing period, ESIC, Group Insurance policy, Mediclain card etc……..

What is the 1^st year in service termed as Training/apprenticeship/contractual/FTC/probation etc…etc…..?

Does the company ask to resign after one year and issue a new appointment letter thus creating artificial break?

Period of Gratuity is to be calculated from Date of joining to date of reference i.e. last day in office……..

You may go thru:

Payment of Gratuity Act, 1972

Section: 2A
Continuous service.

For the purposes of this Act, - 

(1)    an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service……………..

Section: 7
Determination of the amount of gratuity.

(2)  As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity……….

If the amount determined by employer is wrong employee should not accept.

Section: 9
Penalties.

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both……………

If the practices of the company are illegal, unfair the employees may report to the Controlling Authority of Gratuity which may be DLC in o/o labor Commissioner. The Labor officials are duty bound to take suo mottu notice of violations…..

The local Trade unions may also be sensitized. The unions are extra sensitive in such matters.

Thank you sir for the prompt reply on the query.

Absorption date is mentioned only in Gratuity Page of company portal. There was no break of service, only we were called Trainee in first year and got confirmation letter, after completing first year.

Also all of us are getting PF from the very first day of joining the company.

As per your comment: it is clear that company is cheating with her thousands of employees in calculating number of years (i.e. minimum one year for all the employees).

Dear Sir, Please confirm again.

: Refer to Section 2(e) of Payment of Gratuity Act

"Employee” means any person (other than Apprentice) employed on wage in any establishment.

Temporary / Trainee period will also be eligible for the purpose of Gratuity calculation provided it is continuous in nature & not covered under the Apprentices Act, 1961.

If employee is engaged as apprentice then has the company registered the apprentice with respective state govt./apprenticeship advisor?

During this period of 1 year the employees must be doing the job of a regular worker/employee and fetching revenue/profits for the company. After the training period company might be into the practice of changing the status from Trainee ( otherwise doing the job of  regular employee) to Probationer/Confirmed employee.

Or

For 1^st year the employee attends only classroom sessions by professional /experts and does not do the job of regular employee?

 Another point is that if employee is trainee as per Management’s Standing Orders /as def. in Apprentices Act, 1961, then he is not eligible for PF whereas company is providing PF.

You may check and confirm the details and facts at your end.

Section: 4A
Compulsory insurance

(1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed insurer:

 A local lawyer can help you.