by In Payment of Gratuity Act, 1952, “Continuous Service” is a crucial concept for determining an employee’s eligibility for gratuity. An employee is said to be in continuous service if they have been employed by the same employer for a certain period, without significant interruptions. This concept ensures that employees, who have dedicated a substantial part of their career to an organization, are rewarded upon retirement, resignation, or in other specified circumstances.
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Criteria for Continuous Service:
For the purpose of gratuity payment, an employee is considered to be in continuous service if they have been employed for at least five years. However, this period need not be uninterrupted. Certain interruptions like sickness, accident, leave, absence from duty without leave (when not considered as a break-in service), lay-off, strike, or a lock-out or cessation of work not due to any fault of the employee, are considered as continuity of service.
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Special Cases:
In cases of death or disablement, the requirement of five years of continuous service is waived, making the employee (or their nominee or heir) eligible for gratuity payment regardless of the service length.
Controlling Authority
Payment of Gratuity Act designates a “Controlling Authority” to oversee the administration and enforcement of the Act within specified areas. The Controlling Authority plays a vital role in ensuring that employees receive their gratuity payments as per the Act’s provisions.
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Role and Functions:
The Controlling Authority is responsible for resolving any disputes or grievances related to the payment of gratuity. Employees or their nominees can approach the Controlling Authority for redressal if they believe there has been a shortcoming or denial in the payment of their gratuity.
- Powers:
Controlling Authority has the powers of a civil court for the purpose of carrying out its functions under the Act. It can summon and enforce the attendance of witnesses, compel the discovery and production of documents, and examine witnesses on oath. This authority ensures that it has the necessary powers to effectively adjudicate disputes between employees and employers regarding gratuity payments.
- Appeal:
Decisions made by the Controlling Authority can be appealed. The Act provides for the constitution of appellate authorities to hear appeals against the decisions of the Controlling Authority, ensuring a mechanism for review and correction of decisions if required.
