Gratuity applicability - minimum service requirement

MS Moorthy (Querist) 14 October 2010 This query is : Resolved
Dear expert,
For admissibility of Gratuity the service peirod of 4 years + 240 days is disputed. While Madras High court in WPN 2135 of 1987 ruled admissibility for 4 years + 10 months of sdeervice, whereas In P. Raghavalu and Sons Vs Additional Labour Court, Andhra Pradesh, it was decided that employee who has worked for 4 years 11 months and 10 days was not eligible for gratuity. The Gratuity Act stipulates that in order to be eligible for gratuity one should have completed 5 years of service counted from the date of joining. 240 days is taken for determining his continuous service for gratuity calculation purpose and not for eligibility purpose. Please clarify correctness with upto date court ruling if any.

Also if any employee was working with a company on temping / deputaion basis from a consultancy company and later on employed on direct rolls of a company will such employee be eligible for gratuity for total combined servie or for the service rendered while the rolls of fthe company after direct employment.

Thanks in advance for detailed reasoned reply

Moorthy
Moorthy

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