Legal Question in Employment Law in India

Re: Can you give me the rules of gratuity

Re: Labour and Employment Laws

Dear Sir,

We are in receipt of your letter dated June 12, 2003.

We understand that you like to know whether the calculation for five years for the payment of gratuity is based on the calendar months or otherwise.

Now to elaborate this point the Supreme Court has given a judgment that the calendar year concept can not be imported for understanding of completed year of service. (AIR 1996 SC 580: 1995 AIR SCW 4500)

As per the existing provisions, a person shall deemed to be in continued service under the employer for the said period of one year, if the employee during the period of preceding twelve calendar months has actually worked under the employer for not less than 240 days.

Therefore, if the employee has already worked for 240 days in the last ten months of the fifth year, he may qualify for the benefits under this Act.

In case you need any clarification / information on the same, please feel free to contact us.

Thanking you,

Yours truly,

Dubey & Partners

310, New Delhi House

27, Barakhamba Road

New Delhi-110001

India

Tel:+91-11-23323884/51511473

Fax:+91-11-23323890

Email: [email protected];[email protected]

Re: Can you give me the rules of gratuity

Thanks for contacting Dubey & Partners - Advocates.

Your Query has been forwarded to the concenred department and they shall be reverting to you shortly.

Thanking you,

Yours truly,

Dubey & Partners

310, New Delhi House

27, Barakhamba Road

New Delhi-110001

India

Tel:+91-11-23323884/51511472/73

Fax:+91-11-23323890

email: [email protected];[email protected]

Re: Can you give me the rules of gratuity

The provisions of General clauses Act 1897 define 'month' as a period of 30 days, hence recourse any formula/multiplier is not permissible. The General Clauses Act applies for interpretation of all the laws in India including the Constitution of India.