ANIL BHARDWAJ 22 July 2017

Gratuity

I have retired on 10th july'2017 from MNC at the age of 58 years after my association for Approx 8.5 years. With regard to applicable number of years I have received below comments through mail from my HR department.

HR Comments: "If any employee served 5 years and 6 Month and 1 day then he/she is entitled for Gratuity payment for 6 Years but if the service is for 5 years 5 month and 30 days then he/she will be entitled for 5 years gratuity only. In your case you had worked for 8 years 5 month and 24 days so gratuity will be paid only for 8 years."

My comments: In my case working days were 6 per week & length of service is 8 years 5 month 24 days. Kindly clarify number of years to consdier for Gratuity, 8 years, 8.5 years or 9 years in my case.

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9 Replies

Kumar Doab (FIN) 22 July 2017

You may go thru:

Payment of Gratuity Act,1972; 2A,4(2)

https://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

Having retired and having experience you should not face difficulty in understanding the Act and its provisions.

Kumar Doab (FIN) 22 July 2017

The response of HR is right to the extent that if employee has worked in excess of 6 months, after 5Y of service, then it shall be counted as 1Y for the purpose of calculation of Gratuity.

You may look into DOJ and LWD (Date of reference) and check if you worked in excess of 8Y6M i.e. 8Y6M1D…

Kumar Doab (FIN) 22 July 2017

The response of HR is right to the extent that if employee has worked in excess of 6 months, after 5Y of service, then it shall be counted as 1Y for the purpose of calculation of Gratuity.

You may look into DOJ and LWD (Date of reference) and check if you worked in excess of 8Y6M i.e. 8Y6M1D…

Kumar Doab (FIN) 22 July 2017

You must have submitted FormI mentioning DOJ,LWD.

You may ask designated HR person to supply you the Notice of Determination of Gratuity.

It should contain everything...

Susen Nath 22 July 2017

First calculate how many working days per week 5 or 6? Then 52 weeks per yer. Multiply and calculate days for last months and date leaving year from ur date of joining.

Susen Nath 22 July 2017

And ur case I think u will get only for 8 years if not consider ur company as higher.

ANIL BHARDWAJ 23 July 2017

Kindly clarify applicable number of years for Determining Gratuity considering My date of joining 16th Jan'2009 & date of retirement 10th July'17 having 6 working days in a week. Will it be 8 years Or 9 years?

Kumar Doab (FIN) 23 July 2017

Calculation by HR person, as posted above by you, is right.

08Y5M24D

Accordingly the HR person of employer is confirming Gratuity for 8Y.

Kumar Doab (FIN) 23 July 2017

For in person satisfaction visit nearest office of Controlling Authority of Gratuity, Labor Court/CGIT and speak to the ALC or any counsel specializing in Labor/service matters or a seasoned Trade Union leader appearing there......