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If some employee has worked in a Govt Organisation OR Central/State Govt. and before leaving the said co. he received Gratuiry of RS. 1.00 Lac (maximumm limit at that time) in 1994. Thereafter, he joined a PSU ( DPE guidelines may also be referred). Again he served there for 4 years 10 months after that he superannuated. whether he is eligible for gratuity in PSU also.
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The amount of Gratuity drawn from the previous organisation can be deducted from the eligible gratuity at the time of superannuation and the balance amount could be paid to the employee.Please check DPE guidelines also.
1998 LLR 1072 MADRAS HIGH COURT Hon~ble Mr. S.M. Abdul Wahab~ J. W.P. No. 21350f1987
Decided on 12.6.1996
PAYMENT OF GRATUITY ACT~ 1972-
Sections 2(a), 2(b), 2(c), 2(e) and 2A -
'Continuous serVice' - Qualifying period
of service by an employee -Entitlement
of Gratuity - An employee
rendering continuous service for a period
of 240 days in a year will be
deemed to have continued in service
for 'one year as stipulated by section 2A
of the Act -Thus an employee who has
P.ut in service for 10 months and 18
days for the fifth year subsequent to
first 4 years should be deemed to have
completed continuous s6rvice of five
years -His claim for gratuity is tenable.
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File Type: pdf Madras High Court Juggement on Gratuity.pdf (1.46 MB, 61 views)

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