Gratuity payment

Anuj Bindal (Querist) 16 September 2019 This query is : Resolved
Hi Friends,

I am working in NSE & BSE Listed company since 26th Dec 2014. I have resigned from job on 16th Sep 2019 and my last working day will be 15th Nov 2019. I will be completing 4 years 10 months and 19 days till last day of working. Please tell whether I am eligible for Gratuity or not? Also share SC judgement if any as my HR is confirming that they will pay Gratuity only when I will complete 5 years i.e I have to work till 26th Dec 19. Please also tell what remedies I have if employer refuse to pay the Gratuity amount.

Thanks,
Anuj

Follow Query

Report Abuse

Isaac Gabriel (Expert) 17 September 2019
The gratuity entitlement arise on completion of four years and six months since six months will be computed as one year. If not obliged file an application with the jurisdictional controlling authority designated in Labour authority.

Message likes : 1 times

Anuj Bindal (Querist) 17 September 2019
Thank you Sir for your advice

P. Venu (Expert) 17 September 2019
In my understanding, Gratuity is be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. as such, an employee with less than five years cannot be said to be eligible.

However, some High Courts (Kerala and Madras, included) have held that 240 days' service in the fifth and final year would make one completed year's service. It all depends upon the stand that would be adopted by the employer. Anyhow, you may apply in the prescribed form.

Anuj Bindal (Querist) 19 September 2019
As per discussion with Employer, they are considering 5 full year for Gratuity eligibility and denied in my case as I will be completing 4 years, 10 months and 19 days. In that case, do I have any right to appeal to Labour department and if yes, then to whom to appeal and what is the procedure.

P. Venu (Expert) 19 September 2019
Ultimately, the issue may be taken up to High Court. If so, decisions of other Higher Courts could be useful.

Anuj Bindal (Querist) 24 September 2019
Hi,

Please share details of High court cases which have held that 240 days service in 5th year will be considered as one completed year of service.