Service and gratuity Service and gratuity

7 months ago

joined in a private college in 2014. college closed by government in 2021. till now i was not relieved. what is my age of service?

Legal Counsel Vidhikarya

Responded 7 months ago

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A.Dear Client,
Under the Payment of Gratuity Act, 1972, an employee is eligible for gratuity if he or she renders continuous service for a minimum period of five years under the employer. In your case, you joined the college in 2014 and that college was closed officially in year 2021, so, your total length of service is 7 years irrespective of the issue of a relieving letter by the employer considering the reason behind the closure of the establishment. Under the Payment of Gratuity Act 1972, gratuity is calculated as under - Gratuity = Last drawn salary (basic salary + DA) * number of completed years of service * 15/26. For the calculation of gratuity, salary includes only Basic salary and Dearness Allowance (DA). There won't be any other components that will be considered for the calculation of gratuity. The employees of an organization who are not covered under the Payment of Gratuity Act 1972 are also eligible for the gratuity if qualify for the same, but the total number of days in a month will be considered 30. If the gratuity is not paid by the college to you so far, then you may escalate the matter before the Controlling Authority under P G Act, 1972 and the concerned Labour Commissioner for redressal of your grievance.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 7 months ago

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A.Dear client,
As per the Payment of Gratuity Act, 1972, one is entitled to get gratuity if she or he has furnished service continuously for a minimum of 5 years with a particular establishment or organisation.
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