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 : 6

Kumar Doab (FIN)     10 August 2012

Mr. Gabriel has given valuable advice. Kindly follow it.

 

Section: 4
Payment of gratuity.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.

There are employers who do not put any ceiling on gratuity and employee can accumulate gratuity for entire tenure of service. Nothing in the act prohibits employee to accept better benefit than the one mentioned. So if employer is offering better benefits in terms of gratuity employee can accept.

Therefore you may use the opportunity to get better benefits in terms of gratuity from your employer.



 

BANK OF BARODA GRATUITY FUND

RULES  AND REGULATIONS

On voluntary retirement after 20  years of service/or resignations of an officer after 5 year of continuous service in the Bank: Gratuity shall be payable at the rate of  one

month’s salary for each completed year of service subject to the maximum 15 months

salary.

IOC Employees' Gratuity Rules 

After completion of 5 years service but before 20 years' service : 12 months' emoluments (actual)

NATIONAL LAW SCHOOL OF INDIA UNIVERSITY

34.  (i) An employee who has completed five years of qualifying service at

the University shall be granted Death - cum- Retirement  Gratuity in

accordance with the scale indicated in Regulation 35.

35.  The amount of death -cum -retirement Gratuity shall be one - fourth of the

emoluments of an employee for each completed six monthly period of

qualifying service subject to a maximum of sixteen and half times the

emoluments or Rs.1,00,000/ -  whichever is less

MANISH KUMAR SUKHWAL (MANAGER)     12 August 2012

I worked with a Pvt Sec Organisation, joined the Company on June 2006 and resigned on Feb 2012. Am I eligible for Gratuity.. Plz advise..

Isaac Gabriel (Advocate)     12 August 2012

Dear Manish, you are eligible if you have completed the minimum service as per your calculation.

Kumar Doab (FIN)     15 August 2012

Section: 2A
Continuous service.

(2)

(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;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five 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) one hundred and twenty days, in any other case;

Kumar Doab (FIN)     15 August 2012

Section: 2A
Continuous service.

(2)

(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;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five 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) one hundred and twenty days, in any other case;

Ravi Chouhan (Area Sales Manager)     28 August 2012

Hi, I was working for a Multinational Company and have recently left it as got a better job in another company.

My tenure in the privious company was 4 yrs, 10mths and 9days (01/10/2007-09/08/2012). Am I eligible for Gratuity as I had requested for the same to the company but they replied that as per Gratuity Act, 5yr complition is a must.

Please help.

Nitin (team lead)     28 August 2012

 

Hi,

I am working for a Pvt Ltd company from 5th oct 2007 to till date but in between my company name got changed and they asked me to resign from the older company. During that time I have told them I will not resign to which they said that they will treat this as a service continuation. I have completed 1.5 year in older company and about 3.4 months in newer company. During that time my position, salary, office address..everything remain same. Am I eligible for gratuity or not. Please advice as I have to resign from the current company.

Kumar Doab (FIN)     28 August 2012

Is the name of company in salary slip issued by old company and new company same?

 

If the company has just changed its name with the permission from concerned govt. depts., what is the need of asking employees to resign?

How can company ask for a 3.4 years backdated resignation now?

It is felt that you should not submit resignation.

You have posted that:

--”I am working for a Pvt Ltd company from 5th oct 2007 to till date but in between my company”

And

“I have completed 1.5 year in older company and about 3.4 months in newer company.”

Both of these are confusing.

--“they said that they will treat this as a service continuation.”

Obtain it in writing on the letterhead of the company under original seal and signature of competent employee e.g.  Appointing authority, MD, Chairman……

The Payment of gratuity Act, Rules of payment of Gratuity, HC-SC judgments are already enclosed in this thread.

 

You may go thru Payment of gratuity Act Section: 2A
Continuous service

And

 

THE PAYMENT OF GRATUITY (CENTRAL)

RULES, 19721

 

      3. Notice of opening, change or closure of the establishment.-

(2) A notice in Form B shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name, address, employer or nature of business.

Obtain it in writing from company that they have changed the name of company only and copy of the notice submitted by them  in Form A, B or C as the case may be.

Valuable advice of learned experts/members is sought.

 

 

Sarita Singh (Back-office Executive)     05 September 2012

I joined a private organization on 29th Jan 2008 and I have put a resignation on 3rd August 2012. As per copany norms I have served my notice period till 30th August 2012.

Please confirm will I be eligible for Gratuity as my last working day was 30th August 2012??

Please reply me.

Satish lakshmiah (QUALITY CONTROL ENGINEER)     06 September 2012

Hi,


My name is SATISH B L, currently working in a software company in Bangalore

DATE OF JOINING : 05/11/07

RELIEVING DATE: 10/09/2012

TOTAL PERIOD SERVED IN THE COMPANY: 4 YEARS 10 MONTHS AND 5 DAYS

My company says that i am not eligible to get gratuity as i have not served for 240 working days in the 5th year.

So i would like to know whether i am eligible or not.

If eligible, please provide me substantial document / link in order to show to my company.

Best Regards,

Satish

 

 

Kumar Doab (FIN)     09 September 2012

@ Satish,

 

05/11/07-04/11/08

05/11/08-04/11/09

05/11/09-04/11/10

05/11/10-04/11/11

Then

05/11/11-04/12/11

05/12/11-04/01/12

05/01/12-04/02/12

05/02/12-04/03/12

05/03/12-04/04/12

05/04/12-04/05/12

05/05/12-04/06/12

05/06/12-04/07/12

05/07/12-04/08/12

05/08/12-04/09/12

05/0912-10/09/12

The period includes leave, weekly off, holidays etc.

Kindly check it at your end.

Valuable advice of learned experts/members is sought.

You may submit FormI to employer and controlling authority and obtain acknowledgment from both.

This thread is so informative and you may go thru it from beginning. You may ask your company which is the date of reference taken by it? Let the company reply in writing subsequent to submission of formI. You may decline to accept any verbal reply. You may submit a postage prepaid {as purchase from Post Office} self addressed envelope with a covering letter and from I and demand reply by redg post only and payment by bank DD only.

Kumar Doab (FIN)     09 September 2012

@ Sarita,

 

29/01/08-28/01/09

29/01/09-28/01/10

29/01/10-28/01/11

29/01/11-28/01/12

Then

29/01/12-28/02/12

29/03/12-28/04/12

29/04/12-28/05/12

29/05/12-28/06/12

29/06/12-28/07/12

29/07/12-28/08/12

29/08/12-30/08/12

 It should be 4Y6M2D

Valuable advice of learned experts/members is sought.

 

 

6M2D may be taken as 1Y and deemed as having completed 5Y for the purpose of calculation of eligibility of gratuity.

Now in case of 6M

 

Payment of Gratuity Act, 1972

 

Section: 2A
Continuous service.

For the purposes 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;

Does your company operate on the basis of 5days/week in office where you are located?

If yes you might have completed 180 days in 5th year.

And then

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five 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) one hundred and twenty days, in any other case;

The above is heartfelt opinion.

If you fulfill the criteria you may consult a competent and experienced lawyer stake your claim and submit FormI.

 

 

Sarita Singh (Back-office Executive)     10 September 2012

We used to have 1st & 3rd Saturday as working day and 2nd & fourth Saturday holiday. Please confirm will I be eligible for Gratuity.

Kumar Doab (FIN)     10 September 2012

@ Sarita,

Kindly consult a competent and experienced labor consultant/service lawyer.Youe lawyer may be able to afiirm and quote some relevant citations suitable to you.

You may take a stand suitable to you.Nothing should be added to or  ignored from the act.

"6M2D may be taken as 1Y and deemed as having completed 5Y for the purpose of calculation of eligibility of gratuity.

 

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five 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) one hundred and twenty days, in any other case;"

Valuable advice of learned experts/members is sought.

Vijay (Tech Lead)     19 September 2012

Hello Sir,

I am eligible (6.5 years) for gratuity and my resignation has been accepted from my employer (Delhi based). Now , I have joined new company in Bangalore. But my previous employer still not paying the gratuity amount as It's been more than 7 months. I do write mail and make call, at that time they always say "Your gratuity amount  will be released soon". In this way, they are not releasing gratuity amount and not interested to pay any compensation (interest like  5 to 10%) which I could easily get by Fixed Deposit if amount could have given to me 7 Months back.

My query is : As per law, How many days should EMPLOYER  take to release the Gratuity amount after acceptance of resignation (i.e. from the last day ).

Please respond at the earliest and suggest what should I do.

Regards,

Vijay


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register