Eligible for gratuity
11 months ago
Sir I m working since from 7 years in hospital & my hospital is sold by my employer to another company as 1 month they sent me for leave due to less patients & in next month due to medical condition I m not able to join but after improving my condition I continue my work from 27 march now my employer said that i m not eligible for gratuity can u explain why I m not eligible for gratitude
A.Dear Sir,
4years 240 days is enough for claiming gratuity.
\\\"As per Madras High Court judgement in a case of Mettur Beardsell Limited [represented by its Personal Manager], Madras v/s Regional Labour Commissioner [Central Authority under the Payment of Gratuity Act, 1972], Madras, it has been stated that if an employee has rendered continuous service of 240 days in the fifth year of service then for the purpose of calculation of gratuity, it must be considered as if he has completed FIVE years of continuous service.\\\"
When a company is sold to another company section 25FFF of the Industrial Disputes Act is attracted. Accordingly, the employees are expected to be paid compensation at the rate of 15 days salary for every completed year of service as retrenchment compensation. If the service of the employees is also transferred, then there should be a consensus on the following points.
1. Past service of employees- whether their service will have effect from the date of joining in the past/ old company. If so, whether provision has been made for payment of gratuity by the new company.
2. Service conditions- whether the salary, benefits and other service conditions would remain unchanged or not.
If the above terms are clear there would not come any doubt about payment of gratuity. If no such liability is taken over by the new company then arrangements should have been done to pay the compensation and gratuity to those eligible for the same. Though all employees who have worked at least for 240 days in the preceding 12 months will be getting retrenchment compensation at the rate of 15 days salary for every completed year of service along with notice pay of one month salary (or notice in advance) only those who have worked for 5 years will be getting gratuity
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