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Vij (n/a)     04 July 2009

Elgibility for Gratuity

Hi, I have completed 4 years 10 months in organization including notice period. Am I elgibile for gratuity  as per the Act?

If employer does not pay the gratuity, what labour body can be contacted ?

 

Thanks

 



Learning

 14 Replies

badrinath (Sr.Manager-human resources)     04 July 2009

for gratuity an employee should have complected for a period of full five years. then only, an employee will be eligible for gratuity.so  as per your  status  of employment, you are not eligible  for  gratuity.

A V Vishal (Advocate)     04 July 2009

Gratuity shall be payable to an employee on the termination of his employment of his employment after he has rendered continuous service for not than five years,-
(a)
on his superannuation, or
(b)
on his retirement of resignation, or
(c)
on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement

Vij (n/a)     04 July 2009

There was one case at Madras high court where 240 days in 5th year was considered as continuous service.

Section 2A of gratuity act talks of continuous service and requires 240 days minimum each year for elgibilty of gratuity.  So in my case 240 days are served in 5th year and full 4 years.

 

ratikanta (HR Manager)     02 October 2009

hello every one,

i have a query plz reply me if any person have completed is service 4.5 years in a company and he is terminated or retrenched by management can he eligiable for gratituity. plz reply sooner

Ashish Ovalekar (Manager Legal & Compliance)     03 October 2009

Dear Ratikanta,

As per the provisions of the Payment of Gratuity Act, a person has to be in a continious service of 5 years, to be eligible for gratuity.

As far as the Judgement of the Madras High Court is concnerned it has taken into consideration of the Industrial Disputes Act, 1947, while interpreting the provisions of the Gratuity Act, and hence come to a conclusion that 240 days equals to 1 year of completed service, and hence a person completing 4 years and 240 days, minimum is entitled to gratuity.

 

Thanks ,

Ashish.

ratikanta (HR Manager)     03 October 2009

thanx ashish for ur quick reply but i am asking if the company is forcefully retrenching any employee from service and he has completed his 4 year 6 month service. and secondly while u considering 240 days it includes Rest days or only working days. in that case he will be eligiable for gratuity or not

Vij (n/a)     05 October 2009

Hi asish,

I completed 4 years 10 months, but my employer did not pay me gratuity as they said 5 year is minimum required and 240 day rule is interpreted after 5 years ( but its not mentioned in the act )

Can something be done to claim the gratuity?

Thanks

 

Ashish Ovalekar (Manager Legal & Compliance)     05 October 2009

Dear Ratikanta,

If the Company is forcefully retrenching its employees then the Compan y would have to pay Notice pay as mentioned in the appointment letter. But if the Company does not pay any retrenchment compensation or Notice Pay, then as an employee, you would always have an option to file a complaint under the Shops and establishment act, claiming that your termination/ retrenchment was illegal, and you can claim reinstatement.

As for computing 240 days, as per the definition of continious service it inlcudes all days including holidays. You would have to be in the organisation for minimin of 4 years 8 months.

Thanks,

Ashish

 

Ashish Ovalekar (Manager Legal & Compliance)     05 October 2009

Dear Vij,

Ypu would have the option to file a complaint before the Authority under the payment of Gratuity Act. You can take help of the judgment of the Madras High Court, while claiming your gratuity.

Thanks,

Ashish.

Vij (n/a)     13 October 2009

Thanks Asish,

I have seen Madras Judgment in one of the forum. Can it be accessed at any Government websites with the LLR number.

Also kindly advise what Authority need to be contacted for same.  I was employed in Uttar Pradesh.

 

Kumaresan ka (Legal - HYUNDAI)     21 October 2009

Yes you are eligible for gratuity.

Ashish Ovalekar (Manager Legal & Compliance)     21 October 2009

Dear Vij,

You have to approach the Controlling Authority appointed under the Payment of Gratuity Act. This Authority is normally situated in the premises, wherein the Regional Labour Commissioners Office is situated.

I am attaching the said judgment for your reference.

 

Ashish.

 


Attached File : 32 32 madras high court gratuity entitlement 4 years 240 days.pdf downloaded: 381 times

Kanksha (qq)     15 May 2015

Hi,

This is a kind of urgent as next week is my last working day.

I have joined on 21-Oct-2010 and my last working day will be 20-May-2015. This means i have completed 4.7months. will i be eligible for Gratuity?

 

Thanks,

Kanksha

Kumar Doab (FIN)     06 June 2015

If the establishment works for less than 6dats/week then if you have completed 190days unitrupted service then you can be eligible.


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