A company has following Gratuity (G) and Provident Fund (PF) rules :
(1) An employee must have completed one year's service to be eligible for either G or PF.
(2) An employee resigning or retiring or retrenched after ten years' service gets both G and PF,
(3) An employee retrenched or retiring after 5 years but before 10 years' service gets both G and
PF; but that resigning during this period gets either G or PF.
(4) An employee retrenched or retiring before 5 years' service gets PF but not G; but that resigning
during this period gets neither G nor PF.
However,
(5) in case an employee dies after 2 years' service, his family gets both G and PF.
(6) in case an employee was on leave without pay, such period is deducted from his total years of
service and then the above rules are applied.
(7) in the case of a lady employee, if she has completed 2 years' service, two years are added to her
actual service before applying the above rules, as a special consideration.
Apply the above rules to the cases described in each of the following
questions and decide whether the employee is eligible for G and J or PF.
Mr. Augustin serving in the company for five years out of which for one year he was on leave without
pay was retrenched from the service.
The employee was retrenched after 4 years of service. So, conditions (6) and (4) are
to be applied to him.
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