LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

M RAAJAN GANESH   27 November 2023

Eligibility for gratuity


I had joined in an organization on 10.04.2019 and getting relieved on 04.12.2023. I had completed 4 yrs 8 months of service. Whether I am eligible for getting gratuity. Is their any court judgement please share



 3 Replies

Sanskriti Tiwari   27 November 2023

Under the Payment of Gratuity Act, 1972 in India, gratuity is typically payable to employees who complete a minimum of five years of continuous service with an organization. However, there are certain exceptions where courts have interpreted the Act more liberally.

Section 2A of the Payment of Gratuity Act states that an employee is deemed to be in continuous service for a full year if they have worked for a period of 240 days or more in that year. Based on this provision, courts have interpreted the completion of 4 years and 240 days as equivalent to five years of service for gratuity eligibility.

The Madras High Court's ruling in the case of Mettur Beardsell Ltd vs Regional Labour Commissioner recognized this interpretation, affirming that employees who have served for a period exceeding 4 years and 240 days should be considered to have completed five years of service for gratuity purposes.

Additionally, the Kerala High Court in the case of Kerala Ceramics Ltd vs Presiding Officer has upheld this interpretation, acknowledging that employees serving for 4 years and 240 days are entitled to gratuity.

However, it's important to note that while these court rulings exist, not all employers may readily implement this interpretation without legal action or negotiation. Some organizations might stick to the literal five-year requirement as stipulated in the Act.

Given the complexity and variance in implementation, seeking legal counsel from experts specializing in labor laws or employment matters would be beneficial. They can provide tailored guidance based on the latest legal precedents, ensuring you understand your rights and options regarding gratuity eligibility.

SAM (LEGAL)     27 November 2023

no you are not elegible. You need to complete full 5 yrs of service to become elegible

P. Venu (Advocate)     29 November 2023

You are eligible based on the provisions of Section 2A.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register