LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

BBK (Sr Manager)     22 February 2012

Gratuity elegibility

we are removing an employee by giving notice to him for non satisfactory work (based on the oral feedback from his manager). employee has completed 21 months of service. he is a confirmed employee.

since the seperation is initiated by the employeer, is the employee elegible for gratuity for 20 months of service.

kindly advice.



 5 Replies

Kumar Doab (FIN)     22 February 2012

It is felt that:


" 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, except in case of termination due to death or disablement"

Valuable advice of learned experts/members is sought.

Mahesh Gouda (Officer)     23 February 2012


Gratuity eligible after complition of service 4 year + 240 days (8 months) only.

Kumar Doab (FIN)     23 February 2012

This may set a wrong precedence in the company.

How the notice based on oral feedback sustain?

The reslutant termination order may prove to be  a bad order.

The employee may choose to separate.

The action being contemplated by you may not fetch obedience.

Vishal (Asstt. Manager)     26 February 2012

Both are the seperate matters, I;e: illigal termination and eligibility for gratuity,


As per Gratuity Act, an employee is elegible for Gratuity after 5 year of continioues services. But, it is the descretion of your company, may be paid Gratuiy before the 5 years

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register