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Clarity between gratuity eligibility service (5 or 4.8 yrs)?

Page no : 13

Muralidaran (AVP)     04 March 2015

Sirs,

I joined my company on 4th July 2008 and I will be leaving the service on 13th March 2015 ( total service of 6 years, 8 months and 11 days). For the purpose of gratuity calculation, which will be considered - 6 years or 7 years? 

Thanks in advance for the clarification.

Regards

Muralidaran.R

Kumar Doab (FIN)     04 March 2015

Period above 6Y6M shall be taken as 7Y.

Vishal (Self)     17 March 2015

I joined on 28th Dec, and my last working day would be 16th June. As it is 5 years and more than 120 days, will it be considered for 6 years or 5 years.

Kumar Doab (FIN)     17 March 2015

5Years.

Raghu (BANGALORE)     20 March 2015

Hi,

 

I have completed 4 year 7 months in organizations, am I eligible for gratuity,

 

But the employer is denying the eligibility, If  I am eligible  what will be the alternate options to claim,   

 

 

Kindly help me on the above matter.

 

 

Kumar Doab (FIN)     20 March 2015

Count from DOJ-DOL and include probation/notice period. 

If company works for 5days/week or lower then you may be...........................having worked > 4Y190D

Even if you are not eligible employer can pay by his sweet will.

shivamahendra chary (field support executive)     09 April 2015

Dear Sir, Requesting you to all to reply on my query, please. My name is K. shivamhendrachary and working in private LTD company.I joined this company on 7th December 2010.  I am working regularly in this company since  till date. This company has 6 days working in a week .  only Sunday and Governament holidays is off in every month. Now I am planning to leave this organization on 30th April 2015. Will I entitle for gratuity/eligible after working above time period. Company will have to pay me at any cost without any dispute? I have seen two posted decisions (madras high court and Supreme Court) on website for 4 years 240 days. But I don't know exact calculation of days for 6 working days Company? Please reply me on my query whether I will be eligible for gratuity if I will leave my company on 30th April 2015? Company HR team is not give proper update to me they are saying 5 years Compulsory,is it correct please help.....

Kumar Doab (FIN)     12 April 2015

@Shivamhendra Chary,

 

Both points raised by you have been discussed many times in this long thread.

If establishment works for 6days/week:::;employee should have worked for 240 days/year.....

 

You may count from DOJ/LWD....

Abhinav (Manager)     15 April 2015

Hi All

I have gone through the complete thread and going by what people have mentioned, an employee in an organization with 5 working days in a week is eligible for gratuity upon serving just 4 years and 190 days of uninterrupted service. However this doesn't make sense to me for the below reasons: 

1> Section 4 in the Gratuity acts states that: Payment of gratuity.- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-- (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease:

2> Now the section 2 describes continuous service as: 

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service,including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order 3*** treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lockout or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-- (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-- (i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) two hundred and forty days, in any other case; 

My point is that if an employee is serving 4 years and 190/240 days of uninterrupted period, he/she will fail in the section 2-1 itself in the definition of continuous service and section 2-2 is redundant in such case. 

Please can someone confirm where my understanding is incorrect. I also feel none of the case mentioned in the thread are convincing for payment of gratuity upon 4Y190D of service (5 days working organization). Please can someone help as I fall under this case and my company says you will get it on serving 240 days.

Between my date of joining is 4-Oct-10 and date of relieving is 13-Apr-15 which means 4Y192D. 

@Kumar Doab, @Isaac Gabriel, @Kirti Kar Tripathi, your expert comments please.

Thanks very much in advance!!

Abhinav

Kumar Doab (FIN)     16 April 2015

This has also been discussed in following thread in which you have posted:

 

 

https://www.lawyersclubindia.com/forum/details.asp?mod_id=103462&offset=2

 

 

Payment of Gratuity Act is  statue.

Sec:2A was inserted in Payment of Gratuity Act by gazette notification.

There can be now no contradiction on the provision of the Act.

 

You may download the latest judgments including the latest one e.g. by Chhattisgarh high court from various threads at the link given in above thread.   

 

Kumar Doab (FIN)     16 April 2015

The Andhra High Court judgment rather lays down:

 

 

Andhra High Court

Kothari Industrial Corporation, ... vs Appellate Authority Under The ... on 12 September, 1997

 

https://indiankanoon.org/doc/762511/

 

 

 

5. Section 2(c) of the Act states that "continuous service" means continuous service as defined in Section 2-A(sic.). Section 2-A of the Act is as follows :-

 

 

10………………… and the question of counting the actual working days in respect of them does not arise. As a result, we find that the contention raised by the petitioner is totally meritless. The whole case of the petitioner was based on Lakshmi Vishnu Textile Mills Ltd. case (supra) which as pointed out already has been overcome by the Legislature itself by amendment in the Act by bringing in Section 2-A on the statute book, In result, both the writ petitions are, in our view, totally meritless and deserve to be dismissed.

 

 

 

It has been discussed in following thread;

 

 

https://www.lawyersclubindia.com/forum/Steps-to-submit-form-i-in-payment-of-gratuity-act-1972-116100.asp#.VS_tbNyUcqM

 

 

and judgment can also be downloaded......

 

 

 

You may also draw the attention to word' WHOEVER' avoids  to pay Gratuity .....................and penalty of Rs.20000/ and punishment with jail time as in Sec:9................

 

Devaraj   22 July 2015

Hello there, 

I am working in an IT company, My date of joining is 14.10.2010 and my last date is 19.08.2015, when I checked with my HR for Gratutiy, he said I am not eligible for it. My company has 5 days of working a week and I complete 210 working days before my last date, so when I said I am eligible but he said it is not a rule in my company.

Can you please confirm if I am eligible, still I have chance to change my last date. Could you please calculate and tell me when is the exact date I am eligible for grautity. 

Also I am being paid for a month(i.e., 30/31 days a month )

 

Thanks, 
Devaraj 

Kumar Doab (FIN)     22 July 2015

@ Devaraj,

The query that you have posted has been discussed 'n' number of times of times in this thread.

From DOJ-LWD  you seem to have worked for more than 240 days.

All off days/approved leave is counted.

Your HR is not any lawmaker.

Submit FormI under proper acknowledgment.

You can take help from your employee's/trade unions/Labor Law Cosnultant.

SUDHINDRA   29 July 2015

Hi,

 

I am Sudhindra Sharma, working in a company in Bangalore, Karnataka.

My date of joining my organization is 1st of January 2011 and my last working day is 31st July 2015.

That makes it 4 years and 7 months of contineous service.

Can someone let me know if I am eligible for gratuity?

The HR here is not providing me a clear answer. Some say I am eligible and some say no I am not.

 

Thanks & regards,

 

Sudhindra Sharma

Kumar Doab (FIN)     29 July 2015

@ Sudhindra ,

The query that you have posted has been discussed 'n' number of times of times in this thread.

Count 4Y and No. of days worked in 5th year  From DOJ-LWD.

If compnay works for less than 6days/week then if you have worked for 190 days you shouild be eligible.

If compnay works for  6days/week then if you have worked for 240 days in 5th year, you should be eligible.

 

Even if you are not eligible employer can pay Gratuity   by its sweet will.


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