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KS (SM)     20 April 2010

Gratuity - Urgent suggestion needed

Dear Members,

There is a colleague who need the following clarification,

She has completed 4 years and 8 months (240 days) working just now.  She wish to resign now. She has a notice period of 3 months which she wishes to serve. In the process she want to utilise her unused EL for a month.

Does she become eligible for gratuity after serving the notice period and getting relieved? In case if the employer decides to relieve before serving notice period, will gratuity still be applicable?

The gratuity is insured by LIC.

Request the forum members to reply soon. Matter urgent.

Thanks

 



Learning

 2 Replies

R.R. KRISHNAA (Legal Manager)     20 April 2010

As your friend has completed 240 days in this fifth year she is eligible for gratutity. 

Reetu Dwivedi (Paralegal)     20 April 2010

Totally Agree with Krishnaa

Working 240 days in the fifth year is sufficient to be eligible for gratuity.
S 2A(2)a(i) & (ii) defines what is meant by continuous service.

 i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case


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