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Jyothi Billa (Engineer)     24 June 2013

Gratuity payable clarification

Hello Sir/Madam,

I was working in an MNC company and have resigned from the company recently. Please find the details of joining date and last working day below.

Gratuity Eligibility Date (Joining Date): 28-Jul-08 (this was mentioned in the Full & final settlement document)
Legal Entity Hire Date : 1-Apr-11 (our organization has many businesses/entities and our team was moved to different entity on 1-Apr-2011, but the top organization and team remains the same)
Resgnation Date: 6-Jun-13
Actual Termination Date (Last working Day): 10-Jun-13

I have recieved the full and final settlement document from the HR Ops team and in that document they didn't mention any amout against Gratuity. As per present gratuity act am I eligible for the gratuity for above mentioned service period?

Please help me to clarify my gratuity eligibility, so that I can give the reference of this forum to my HR ops team.

Thanks & Regards,

Jyothi



Learning

 10 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     25 June 2013

The gratuity eligibility service as per Gratuity Act 1972 is 5 years.

But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.

"Judgment from Supreme Court:

"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."

Dr.Trinath Dash (Legal Practice)     25 June 2013

Madam

First of all you should ask the HR in writing if gratuity was given to you and if not why.

After that if it is denied you can seek the help of the concerned controlling

authority under the Act  i.e. the designated Officer of the State or Central Labour Dept.

As such you are eligible for Gratuity.

Dr. Trinath Dash

Sasidharan (Retired Labour Commissioner (Central))     25 June 2013

You may apply for gratuity to the employer in form I  under Gratuity Rules and awaite for  few days to know what reply they are giving. Thereafter further action can be taken.

Jyothi Billa (Engineer)     26 June 2013

Hello,


Thank you all for your immediate response.

Before starting this thread, I had sent an email to my HR asking for gratuity eligibility and they replied that they are not sure about latest changes in gratuity act. Therefore I wanted to know whether I am eligible for gratuity or not and started this thread. But yesterday they replied me saying they will be processing my gratuity asap.

 

Once again thanks all.

 

Thanks & Regards,

Jyothi

Y PERLA (Mech Engineer)     11 September 2013

This is same case as Ms.Jyothi Billa, I have completed 4 years 10 months 29 days at the time of last working day. Our HR person asking official amendment to proceed to gratuity eligibility.

 

Could anyone has the official amendents for gratuity eligibility, please reply me.

Kumar Doab (FIN)     12 September 2013

If you have remained with same employer that has issued appointment letter to you from date of joining till date of separation/termination, you are entitled to get payment of Gratuity from employer which is a statutory benefit and employer is under legal obligation to  pay it to you……………………………

Have you ever resigned in between this period i.e. from DOJ/DOL………………???

If not you are eligible.

If yes, the employer is willfully and intentionally creating artificial breaks to circumvent the payment of Gratuity and all of the affected employees may approach a competent and experienced labor consultant/service lawyer, with copies of all docs on record and proceed under expert advice of the lawyer.

However you may go thru appropriate sections on applicability, eligibility and other sections as well of the Act if it is applicable to the establishment or Rules if establishment has its own approved Trust to manage the Gratuity..

The HR of the establishment can confirm the views of the establishment in your case.

You may submit FormI as ap by redg/. post., and based on the response or no response you may proceed further.

Payment of Gratuity Act, 1972

Section: 1
Short title, extent, application and commencement

(3) It shall apply to­ -

Section: 2
Definitions.

(e) , (s)


Section: 4:Payment of gratuity: (2)
 

Section: 7
Determination of the amount of gratuity.

 

In your case the employer and its designated person in HR has not issued any notice to you with a copy to Controlling Authority of Gratuity on calculation of Gratuity payable to you. If you are eligible it is a lapse at the end of employer.

 

Before contemplating any action to agitate you may visit your lawyer with copies of all relevant documents, understand the merits and proceed under expert advice of your lawyer.

You have posted that:

they replied that they are not sure about latest changes in gratuity act.

What was your query and what was the reply?

 

Anyway the HR and employer are duty bound to know all amendments and keep themselves properly informed. 

Y PERLA (Mech Engineer)     13 September 2013

Thank you sir, for your early reply.

I worked continuosly from the period from 04 August 2008 to 01 july 2013, it almost 4 years 10 months 29 days.

I asked my HR person for my gratuity eligibility for the period metioned (4yr 10 mont 29 days).

He said, I am not eligible for gratuity, and he also said I should complete 5 years.

 

 

 

Kumar Doab (FIN)     13 September 2013

You have posted that:

I asked my HR person for my gratuity eligibility for the period metioned (4yr 10 mont 29 days).

He said, I am not eligible for gratuity, and he also said I should complete 5 years.

It is being suggested in almost threads that employee should stop dealing with employer verbally::::: come out of asking, saying, telling mode::::: and transact in writing by letter thru redg. post.

 You may submit FormI as ap by redg/. post., and based on the response or no response you may proceed further.

 

Y PERLA (Mech Engineer)     13 September 2013

The form I says as below:

" beg to apply for payment of gratuity to which I an entitled under subsection

(1) of section 4 of the Payment of Gratuity Act, 1972 on account of my

superannuation/retirement/resignation after completion of not less than five

years of continuous service/total disablement due to diseases with effect from

the………………..Necessary particulars relating to my appointment in the

establishment are given in the statement below:"

 

But I have not completed 5 years fully, please suggest.

Kumar Doab (FIN)     13 September 2013

You may go thru:

Section: 2A: Continuous service: 2 (a) (i) (ii), (b) (i) (ii)

(Thus If you have worked for 190/240 days in 5th year you should be eligible)

and many of the threads on Gratuity at:

 

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

e.g:

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

 

Discussion > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?


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