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sanjana   08 April 2016

Eligible for gratuity?- 4 years 8 months

Hi Sir,

I am a Software Professional, and have served in my previous organisation for 4 years, 8 months and 17 days. Organisation followed 5 working days per week.
Date of Joining : 20-Jun-2011
Date of Relieving : 08-Mar-2016

I was told by them that I would be getting gratuity during time of resignation. But now when I enquired them about the same, they replied, I am not eligible for Gratuity as per Act 1974, as I haven't completed 4 years 10 months. 

At some forums I have read that 4 years 240 days of service would be eligible.

Am I eligible for gratuity in this scenario? I really appreciate your help in this regard.
Please advise.




 11 Replies

Kumar Doab (FIN)     08 April 2016

IT/ITeS companies are covered by Shops & Estbs Act.

Payment of Gartuity Act 1972, should apply.

You should be eligible as per Sec;2A.

The establishment should have paid within 30days or else interest @ 10%pa should be applicable, even if you have not made an application.

You may submit FormI under proper acknowledgment narrating.....................on dated..............Mr/Ms...................stated that you will be getting the Notice of Determination of Gratuity  and payment of Gratuity on LWD/after resignation, however you have not received it till date, and FormI was not supplied to you and you have obtained it on your own and is attached and request to acknowledge the receipt.



Madhavan   12 April 2016

I have joined a company on 5th Sep 2011 and my last working will be in company on 6th May 2016 i.e including notice period . So I am about to complete 4yrs 8 months in May 2nd 2016.

I wiould like to know am I eligible for gratuity?



Kumar Doab (FIN)     14 April 2016

As per Act/clause already posted above, you should be eligible.

Download the proof of acknowledgment of notice of resignation, final resignation.


S K KARNjhc (Legal Adviser)     16 April 2016

Very correct reply

Madhavan   22 April 2016

thank you sir. But my HR updated that as per the gratuity act and ASM you need to complete 5years to be eligible for receiving gratuity. 4.8 months will not be eligible and qualified.

Please clarify and suggest me on the next step



Kumar Doab (FIN)     22 April 2016

What is ASM?

Is the reply of HR in writing?


Hope you will take this post positively!

The persons that are not active and partcipate in forums/students/unions activities and update themselves are ill informed and do not develop skills that are later required to handle unscruplous employers and their attornies in HR, Admin, Legal, personnel cells, and such employees are harassed.


Do not remain entangled with HR personnel.

HR personnel is, like you, just another employee in the establishment and is either ill informed or simply acting as per published/unwritten directions of his masters.

HR personnel and even for that matter empliyer, is neither a deity, god or god like, parent, elder brother, megistrate, judge, arbitrator etc and in such situation has become an opponent and if you handle him/her skillfully  you can resolve your matter by your skills; persuasion, persistence, reasoning, negotiating etc.........................................OR you will land up in litigation/disputes.


It has already posted in this thread to whom and how to submit FormI and what should be written in covering letter.


If you are unable to handle the matter on your own you may seek help from elders in the family, competent and experienced well wishers, employee's/trade union leaders, Labor Law consultant etc..........................and show them this thread and many threads with similar queries at LCI;



Discussion > Labour & Service Law > Gratuity)




Madhavan   22 April 2016

thanks for your reply . 

ASM is the name of the company.

Kumar Doab (FIN)     22 April 2016

You are welcome.

Wish you the very best.

Ritesh Maity (Labour Law Advocate)     27 April 2016

You are entitled to grauity. Since you have worked for 240 days you can clearly become eligible for the purpose of calculation of completed year of service. 

Claim your grauity before the employer in FORM I within 1 month from the last date of work. (But I guess it has expired, so do not delay)

If they fail to pay within a month from the date of receipt of the said FORM I, file an application in FORM N before the Controlling authority/ labour commissioner under the Payment of Gratuity Act. 

If you delay, you will not be debarred from the claim, but you will have to file condonation of delay petition and fight on the point which will unnecessarily stretch the procedure.

SANTOSH   28 April 2016

Hello Sir,

I have join jewellery Ltd company in 1st March 2011 and put resignation on 17th December 2015 I have work till 30th January 2016 in the company should I eligible

ForGratuity , they have not paid me full n final salary till now what step should be taken for this Salary pending issue.

Kumar Doab (FIN)     28 April 2016

Apparently you have worked for over 4Y10M.

You should be eligible.

If the Payment of Gratuity Act,1972 applies to the establishment then you should be eligible and paid.

Submit FormI under proper acknowledgment.You may mention in your communications that you have not been supplied the Notice of Determination of Gratuity and Payment till date.

If you had represneted in office then you may narrate it.

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