The Payment of Gratuity Act 1972 Page 2

Seasonal Workers:

If an employee is working in a seasonal business in place of fifteen days seven days gratuity is paid.

Time of payment of Gratuity:

   ü  Gratuity is paid to the employees at the time of retirement in this case the amount is paid to employee himself.

ü  If the employee dies then the gratuity is paid to the family members of the employee.

Continuous Service: Sec 2A(1)

ü  Service is continuous if the employee works without any break.

ü  For calculation of continuous service it is necessary that the employee works with the employer without any break, however following breaks are permissible. Hence if an employee takes a break during the service even then the service is continuous. Following are the permissible breaks.

a)      Sick Leave

b)      Accidental leave

c)       Strike

d)      Lay off

   ü  The service having other breaks is also continuous if the employee works for 75% or more working days for which the business is run. This point is applicable for seasonal businesses.

   ü  For non seasonal business the continuous is service is working for 240 days in one year. If the business works for 6 days a week.

   ü  For non seasonal business working 5 days a week the continuous service will be working for 190 days in a year.

    Also Read:

• The Payment of Gratuity Act 1972 Page 1
• The Payment of Gratuity Act 1972 Page 3
• The Payment of Gratuity Act 1972 Page 4
• The Payment of Gratuity Act 1972 Page 5
• The Payment of Gratuity Act 1972 Page 6