Gratuity related

The gratuity eligibility service as per Gratuity Act 1972 is 5 years.

But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.

"Judgment from Supreme Court:

"Yes, 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.4(2) and thereby is eligible for gratuity."

Quotation from the book:

Law Book (Bare Act,2004) i.e. The Payment of Gratuity Act,1972 (Publisher: Law Publishers () Pvt.Ltd. 18A-S.P.Marg,Post Box-1077,Allahabad-211 001. Phone:623735,623741 Fax-0532-622276.website: lawpublishersindia.com

1. 4 years and 6 months (190 days = 1 year) where the company follows 5 day a week.

2. 4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week.

Is eligible for gratuity.The payment of gratuity ( second amendment) act, 1984 clarifies this. One needs to calculate the no of years and service completion as follows.

A company which follows 5 day week

Doj 1.05.2000 -

01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190days

If we go by the above formula and if the person does not have any break in service he will be eligible for gratuity on 01.11.2004 "

Your establishment is working for less than 5days/week in a month.

Refer to Payment of Gratuity Act, 1972; 2A {(2a)(i)(ii)}, 4,7

https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

If the Act applies to establishment; You should be eligible.

If you have separated then write under proper acknowledgment to designated HR person, good offices of appointing Authority/MD/CEO/Chairman narrating that you have represented to Mr/Ms……….on dated…………….and ‘Notice of Determination of Gratuity’ and payment and any form/format has not been supplied to you till date……… 

If establishment does not pay within 30days from LWD then it is liable to pay interest @10%pa for the delayed period.

Same Query;

https://www.lawyersclubindia.com/experts/Gratuity-related-660686.asp

Dear Sir,

when a employer is not paying full dues and trying to avoid, how to handle with the management legally.

Many employees are suffering as they are not aware of the law and seconldy due to the legal fees.

kindly guide me how to proceed with the legalities, 

Await your reply..

Thanks

 

Dear Sir,

Kindly refer the following case.

An employee of our Organization has joined on 20.01.2014 and left on 08.11.2018. During this time, he had no break of service. His last eligible basic salary is Rs. 6200/-.

Kindly advise us suitably whether he is eligible for payments of gratuity or not.

Dear Sir,

Kindly refer the following case.

An employee of our Organization has joined on 20.01.2014 and left on 08.11.2018. During this time, he had no break of service. His last eligible basic salary is Rs. 6200/-.

Kindly advise us suitably whether he is eligible for payments of gratuity or not.