Gratuity act.
AMIT KUMAR SHARMA
(Querist) 17 July 2014
This query is : Resolved
Dear Sir,
I have worked with an organisation for 4 years 10 calender month from my joining date. I applied for gratuity but employer is not ready to give and saying that as per act i am not eligible to claim gratuity since my service is less than five years.
I have read complete Gratuity Act and Rules 1972 but there is not mentioned the number of days to eligibility for Gratuity.
In the Act only "Not less than five year" is mentioned.
Kindly Provide me exact number of day to eligibility to claim of Gratuity and where it is mentioned so that I can show to employer the exact no. of days to eligibility to claim of Gratuity.
AMIT SHARMA
malipeddi jaggarao
(Expert) 18 July 2014
Not less than five years means minimum service of 5 years. Your employer is correct.
Raj Kumar Makkad
(Expert) 20 July 2014
If you have completed 4 complete year and 240 days in 5th year, you are entitled for the grant of gratuity.
AMIT KUMAR SHARMA
(Querist) 21 July 2014
Makkad Ji,
Kindly advice where it is mentioned and any case law pertain to this so that i can show my employer and fight with them to get my Gratuity.
thanks,
amit
Raj Kumar Makkad
(Expert) 21 July 2014
By virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service.
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.24(2) and thereby is eligible for gratuity."
