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Ronak Patel (Group Manager)     13 June 2012

Eligibility for gratuity claim after 4 yrs 10 months 18 days

Dear All,

I have joined my current organization on 16-Aug-2007. After Serving complete notice period as per my organization policy, my last working day would be 1-Jul-2012. As per records, I am completing 4 Years 10 Months 17 days Or Completing 4 Years & 319 Days.

Now there is big discussion is going on for my Gratuity Claim Eligibility considering below points

  1. As per Gratuity Act, Gratuity can be claimed on completion of 5 years of uninterrupted services with sub clause of 4 years & 240 days or 4 years 10 months 18 days is also considered as eligibility. now there is no clarification whether 240 days are only working days of service where holidays are weekly off are not counted. In our organization we have saturday and sunday as weekly off - 5 days of working culture.
  2.   I have also come across about one Case Law of Madras high court ( W.P No 2135 of 1987, Decided on 12.6.1996) which was filed by personnel manager of  Mettur Beardsell Ltd Vs Regional Labour Commissioner ( Central).
  3. As per judgement, decision was given in favour of applicant considering his continuous service of 4 years 10 months 18 days which is making him entitled for Gratuity claim considering Section 2A. Payment of Gratuity Act 1972.

Now my question, if person has completed 4 years & 240 days but not completing 4 year 10 months 18 days terms, still person is eligible for Gratuity claim or not considering both terms ( 4 yrs & 240 days and 4 years 10 months 18 days ) are indepedent hence meeting of any one of term is making person eligible for Gratuity Claim.  

Second Question, whether organization can exclude holidays and weekly off while calculating 240 days of uninterrupted service or not ?

Being subject matter expert, your kind assistance will help me. also want to request for quick response.

If anyone needs any supporting information, kindly mail me.

Regards,

Ronak Patel

Email : ronakhirpara@yahoo.com



Learning

 7 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     13 June 2012

O.k. you are eligible

Kumar Doab (FIN)     25 June 2012

 

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.

The act is clear.

SC and Madras HC judgements are enclosed.


Attached File : 908619035 paymentofgratuityact(1).doc, 908619035 surendra kumar verma etc vs the central government ... on 23 september, 1980.pdf, 908619035 13 13 gratuity 20 20madras 20hc 20judg 5b1 5d 1 .pdf downloaded: 3301 times

Ronak Patel (Group Manager)     13 July 2012

I am very much thankful to Rama and Kumar for their kind advice and clarification my query.

 

Regards,

Ronak

Suresh (Senior Credit analyst)     01 July 2013

am i eligible for gratuity since i have ccompleted 4 years 10 months 17 days

suresh.

Kumar Doab (FIN)     01 July 2013

@ Suresh,

 

Always start a new thread.

If you have rendered uninterrupted service for this period, you are eligible.

Submit FormI preferably thru redg. post under proper acknowledgment to good offices of appointing authority, MD……………….

 

 

If any employee e.g; HR etc or the employer is showing tantrums draw the attention to the Word ‘ Whoever” in


Section: 9
Penalties.

(1) Whoever...........................

............ Provided that where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than [36] [Six months but which may extend to two years] unless the court trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition 01; a fine would meet the ends of justice.

 

In case of  employees who persue, companies  finally do relent  or it relents when the employee announced to initiate legal proceedings.

Discussion > Labour & Service Law > Gratuity > Query regarding gratuity eligibility

https://www.lawyersclubindia.com/forum/Query-regarding-gratuity-eligibility-74941.asp#.UYYx76KAqWM

 

There are many threads, including this thread, on Payment of Gratuity at:

 

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.Ubx2VeeAqWM

 

e.g:

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp#.UbxznueAqWM

 

You may go thru these.

 

If you are not able to handle the matter on your own, approach your lawyer. 

 

 

  

ROHIT   13 July 2018

Dear All,

I have joined my current organization on 18-September-2013. After Serving complete notice period of 15 days as per my organization policy, my last working day would be 19-JULY-2018 As per records, I am completing 4 Years 10 Months 01 days Or Completing 4 Years & 301 Days. Now there is big discussion is going on for my Gratuity Claim Eligibility considering below points As per Gratuity Act, Gratuity can be claimed on completion of 5 years of uninterrupted services with sub clause of 4 years & 240 days or 4 years 10 months 18 days is also considered as eligibility. Now there is no clarification whether 240 days are only working days of service where holidays are weekly off are not counted. In our organization we have Sunday as weekly off - 6 days of working culture.   I have also come across about one Case Law of Madras high court (W.P No 2135 of 1987, Decided on 12.6.1996) which was filed by personnel manager of Mettur Beardsell Ltd Vs Regional Labour Commissioner (Central). As per judgment, decision was given in favour of applicant considering his continuous service of 4 years 10 months 18 days which is making him entitled for Gratuity claim considering Section 2A. Payment of Gratuity Act 1972. Now my question, if person has completed 4 years & 240 days but not completing 4 year 10 months 18 days terms, still person is eligible for Gratuity claim or not considering both terms (4 yrs & 240 days and 4 years 10 months 18 days) are independent hence meeting of any one of term is making person eligible for Gratuity Claim.  

Second Question, whether organization can exclude holidays and weekly off while calculating 240 days of uninterrupted service or not ?

Being subject matter expert, your kind assistance will help me also want to request for quick response. If anyone needs any supporting information to show my HR department for gratuity.

Please mail me,

Regards,

Rohit 

E-MAIL ID: rohit@ajnara.com

ROHIT   13 July 2018

Am I eligible for gratuity since I have completed 4 years 10 months 01 day or 4 Years and 301 Days (without LWP in my Service) Rohit,

If you have any judgements please send, then I will proof it to pay the gratuity.
 

Thanks and regards,

Rohit
 


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