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

Page no : 3

uma (manager)     19 October 2011

Hi, I have been working in a company from 30th March 2007 and I will be quitting by 21st November 2011. Can you please let me know if i will be eligible.

Also, can you let me know how I can calculate the grautity amount?




Satya (Principal Engineer)     19 October 2011

I have experience

call me 09818800997.

akash (manager)     16 February 2012

Clarification on eligibility for graduity,

Joining date:- 02-07-2007

proposed Releaving date:- 29-02-2012

am I eligible for graduity? if not what should be my releaving date to get eligible for the same ?

We follow 6 days working...




Amit Tiwari (Sr Manager)     11 April 2012


Dear Sir,

I have joined the MNC organization on 25th July 2007 and planning to leave on 30 June 2012. My organization has 5 days a week working. Am I eligible for Gratuity?- Amit

Kumar Doab (FIN)     11 April 2012

@ Amit Tiwari,

If you have rendered unintrupted service,you are eligible.

You may count 190 days=1year.

This has been nicely explained by Sidd in very first post of this thread.

durga (     12 April 2012

Hi Experts,

I have completed my service in one company about 4 years 6 months and 22 days.i am looking for Gratuity but in full and final settelement they didn't mention anything about one of my colugue also resigned from same company (he was there almost 4 years 186 days).he asked about gratuity to HR..they have mentioned "only thye person who has completed 4.years 192.days then he/she eligilble for the Gratuity and you are 6 days less as per the policy" so but in my case as per thir above mail i completed 4 years 202 days..

after saw my final satatement i have asked about Gratuity..but they have replied back to me the Person should complete 5 years in the Orgnization then only he is aeligible for Gratuity..

But why the company peole told diffrent words to my Cologue and ,me?

is am really eligible for Gratuity..?or what's happening there?

can you please Help me in this ..


Thanks and Regards


Kumar Doab (FIN)     12 April 2012

You may request/cajole your colleague to forward to you the  copy of the email sent by company.

The eligibility for gratuity has been explained in detail in this thread by learned experts/members. You may read this thread from first post.

If your company follows 5 days/week and you have rendered unintrupted service, you are eligible. If you are eligible you may submit a gentle representation in writing under acknowledgment addressed to the good offices of your appointing authority, MD with a copy to Head-HR, and request to reply in writing by letter thru redg/speed post.

Employer can make exceptions also.

Parvesh Gusain (Team Leader - Operations)     07 June 2012


My name is Parvesh Gusain and I am working in pvt firm (iGate, BPO) since Oct 01, 2007.  In my 5th year I have resinged on 04th June 2012 and my notice period of 90 day's will be end on 02nd Sep 2012.


I have completed my 4 years and 8 months till May 2012 and from June 2012 till 02nd Sep 2012 i am on notice period, which will be 4 Year and 11 months.


Kindly suggest that am I eligible for Graduaty and my notice period time will also be count as my service period for "Graduaty".

Kirti Kar Tripathi (lawyer)     07 June 2012

yes, your eligible.

1 Like

Kavita (BA)     13 June 2012


I have completed 4 years 11months 7days in my previous organisation, including my notice period and haven't received Gratuity amount as the HR and legal departments are only aware about completing 5 years of service in the organisation. My last date was in Sept 2011.

Am I eligible to claim the gratuity from my previous employer? Will it be possible to claim the same now (June 2012)? What is the exact procedure to claim the same?




Isaac Gabriel (Advocate)     13 June 2012

Issue I form to the employer seeking gratuity.If not responded file a case with the jurisdictional Asst.Commisioner of labour in Form N.

1 Like

Anurag (Sr Business Analyst)     26 June 2012

Hi All,

Require your help in getting more clarity about the gratuity eligibility.

I worked for an Indian IT company (CMM Level 5) from 18-June-2007 till 11-May-2011 i.e. 4yrs, 10 Months and 3 Weeks (approx). I asked the company HR to confirm my Gratuitiy (and shared this link with the acts)and they responded back while saying that there are desputes among the decision from High Courts and unless it is formaly announced we will not follow it. As per them below 5yrs the employees are not eligible for Grauity Amount.

Seeking for you Help!


Anurag (Sr Business Analyst)     26 June 2012

* period is 18-June-2007 till 11-May-2012

Kumar Doab (FIN)     26 June 2012

You may submit form I to employer and obtain acknowledgmernt and  a copy to Controlling Authority along with copies and detail of all representations( by email,phoen call,in person etc ) to employer.

The act is clear.No more clarity is required.Supreme court and High Court have not disputed the provisions of the act.Both have have precisely validated the provisions of the act.

Hr should rather advice the employer  to pay the gratuity, within a month or face penalty/impriosonment.

Payment of Gratuity Act, 1972

Section: 9

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.




Withhold or Adjustment of Gratuity is not permissiable under any circumstance other then those mentioned in section 4(6) of the Act held by Kerla High court in case titled as K.C Methew V/s Plantation Corporation Kerla LLR 2001(123) ker.



(a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.]


(6) Notwithstanding anything contained in sub-section (1), -

(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.

(b) the gratuity payable to an employee may be wholly or partially forfeited]­ -

(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or

(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.


Section: 8
Recovery of gratuity.

If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify,] from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :



Section: 13
Protection of gratuity.

No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section shall be liable to attach­ment in execution of any decree or order of any civil, revenue or criminal court.


SC and Madras HC judgements are enclosed.

Payment of Gratuity Act, 1972


Section: 2A
Continuous service.

For the purposes of this Act, -

(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;


Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -

(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;

(ii) he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and

(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.

Attached File : 48866875 13 13 gratuity 20 20madras 20hc 20judg 5b1 5d 1 .pdf, 48866875 surendra kumar verma etc vs the central government ... on 23 september, 1980.pdf, 48866875 paymentofgratuityact(1).doc downloaded: 1305 times

Anurag (Sr Business Analyst)     26 June 2012

Thanks for your valueable feedback and detailed information Mr Kumar.

Wanted to know more about the following-

1. From which date Supreme court and High court,respectively; have made this act aplicable to IT Companies?

2. Is there any Notice issued to all companies? Can you provide any evidence published for good of Employees?

3. Apart from sending form "I" to company, is there any other way to make it evident for them?

Many Thanks for your help!


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