Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

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

Page no : 20

Ravi Gupta   27 August 2018

Hi All,

As per the payment of gratuity act, employee has to work for 5 years to be eligible for Gratuity. Please read the section 4 of the payment of gratuity act. The deeming provisions under section 2 (a) will only come when a person has worked for 5 years in the organization. The case laws given in particular case can not be considered as law. The cases decided by the High Court and Supereme Court are basis on the termination of employment by the emloyer not in case of voluntary resignation by the employee. In case if employee is been terminated by the employer on completion of 4 year and 240 days then the employer is liable to pay gratuity as the employee did not intend to terminate his employment it is the employer who terminates the employment of an employee due to any reason (not for misconduct, where the gratuity can even forfieted) in such scenario employer is liable to pay the gratuity as there is no fault of the employee which stops him to work 5 years or more to be eligible for gratuity.

The continuous service as defined in section 2 (a) has to be read in conjuction with section 4 of the act. If we precisely understand the interpretation it will look like that a person has to work for 5 years to be eligible for gratuity. however, it is not mandatory for him to work entire year if he has worked 240 days in any year he is eligible for gratuity. It is not restricted to 5th year only.

Hope the experts agree with my interpretation

Ravi Gupta

Mohanasundharam   28 August 2018

Hi Sir/Madam, 

This is regarding gratuity eligibility, my current company gratuity qualification period 5 years.

i am completing 4 years 8 months by this month( 31-Aug-2018) and currently Serving notice period. will be releaving by next end of month. 

Kindly comfirm whether i am eligible for gratuity or not. 

Thank you in advance. 

 

 

 



 

Mohanasundharam   28 August 2018

Hi Sir/Madam, 

This is regarding gratuity eligibility, my current company gratuity qualification period 5 years.

i am completing 4 years 8 months by this month( 31-Aug-2018) and currently Serving notice period. will be releaving by next end of month. 

Kindly comfirm whether i am eligible for gratuity or not. 

Thank you in advance. 

 

 

 



 

Sanjeev kumar   10 November 2018

I have completed 4 year 10 month 11 day and regined from the services. I am eligible for gratuity or not????please reply

Bhagyashri   21 February 2019

Hi,

 

I have joined organisation on 7th july 2014, I will be relieving 22nd Feb 2019, will I be eligible for gratuity.

if not then please an you tell me exact date by which i wll be eligible.

Thanks,

 

Murtaza   06 March 2019

Dear Lawyers,

Same Question Here, My HR is not allowing my gratuity saying that the clause of 5 days week which i have been employed in does not imply here (I was working in a Bank), Stating that this Clause is not applicable to BFSI (Banking, Financials services, Insurance sector, and is Applicable for Mining seasonal or temporary nature of activities in an industry. 

Please guide.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register