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Vichal   17 September 2019

Eligibility of gratuity

I work at Rashtriya Ispat Nigam Limited corporate entity of Visakhapatnam Steel Plant (Andhra Pradesh). I joined VSP on 09th Feb 2015 and will be leaving the organisation on 22nd Nov 2019. I will be completing 4 years 9 months and 14 days of continuous service (No unauthorized absence or break from the service).

I want to know if I am eligible for the gratuity or not ???

My company is denying gratuity to me.

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 9 Replies

Eligibility criteria for gratuity is 5 years.

Isaac Gabriel (Advocate)     18 September 2019

You are eligible for gratuity since 240 days in the fifth year will be calculated as full year.

Isaac Gabriel (Advocate)     18 September 2019

You are eligible for gratuity since 240 days in the fifth year will be calculated as full year.

Vichal   18 September 2019

Sir, is there any document in support of this which I can show in my company. They are not agreeing to 240 days clause.

Isaac Gabriel (Advocate)     18 September 2019

your pay slips will do. Payment of Gratuity Act itself clearly denotes this.

Vichal   18 September 2019

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease They are saying minimum in 5 years. After 5 years, 240 days clause comes into picture. Please suggest me what to do.

jagadish paranjape (Advocate)     19 September 2019

There is no dispute about you having rendered four years contineous service.In fifth year your service was interrupted due to your leavingthe job.If the service is interrupted then if an employee has rendered >240 days service in that year,it would be deemed that an employee has rendered contineous service of one year in that year.this provision finds place in Act itself and no separate authority is needed.

Therefore approach the controlling Authorith in your area by filing regular application after you leave service and do not waste time  in unproductive arguments with employer.


srinivasa rao (DY.MANAGER-HR&WELFARE)     23 September 2019

As per the recent Supreme Court Judgement it is observed that an employee worked for 240 days in the fifty year he is eligible for Gratuity. Pl. check the judgement copy from any of your known sources.


jagadish paranjape (Advocate)     23 September 2019

The question of citing judgment etc. would arise when the arguments are heard in the case. Therefore without wasting time file your claim before controlling authority.

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