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Rakesh Reddy (Software Developer)     18 February 2015

Gratuity elgible

Hi,

My joining date with organization is 24-Jun-2010, now I want to leave the organization, I can stay up to max 24-march- 2015. Will I am eligible for gratuity by considering 4 years 240 days clause.


24- June-2010 to 24-June-2014 ----------->  4years

24-Jun-2014 to 17-March- 2014 ----------->   8 months 4 weeks (266 total days among 190 working days considering 5 days a week).

If we take 240 working days that will be 2 June- 2015, just a 22 days less.

So please clarify, when exactly I am eligible for Gratuity. Because I am having Dearness allowance included in CTC.

 

 



Learning

 7 Replies

Kumar Doab (FIN)     18 February 2015

 

 

The similar query has been discussed big number of times in many threads and a big no. of threads are available at:

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

e.g.

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

 

https://www.lawyersclubindia.com/forum/Payment-of-gratuity-to-contract-employees-107832.asp#.VORdxYKqqko

 

and

https://www.lawyersclubindia.com/experts/Delay-in-payment-of-gratuity-520711.asp#.VORdHYKqqko

 

As per discussion the 240 days include all off days/holidays etc……

Section 2(c) of the Act states that "continuous service" means continuous service as defined in Section 2-A(sic.). Section 2-A of the Act is as follows :-

 

Andhra High Court

Kothari Industrial Corporation, ... vs Appellate Authority Under The ... on 12 September, 1997

 

https://indiankanoon.org/doc/762511/

 

 

5. Section 2(c) of the Act states that "continuous service" means continuous service as defined in Section 2-A(sic.). Section 2-A of the Act is as follows :-

 

Why don’t you work for another 22 days if your company is willing to pay Gratuity after another 22 days?

However obtain the response of the company in writing.

You can submit FormI under proper acknowledgment 30 days before effective date of resignation/LWD!

Kumar Doab (FIN)     18 February 2015

 

Andhra High Court

Kothari Industrial Corporation, ... vs Appellate Authority Under The ... on 12 September, 1997

 

https://indiankanoon.org/doc/762511/

 

 

 

5. Section 2(c) of the Act states that "continuous service" means continuous service as defined in Section 2-A(sic.). Section 2-A of the Act is as follows :-


 

 

10………………… and the question of counting the actual working days in respect of them does not arise. As a result, we find that the contention raised by the petitioner is totally meritless. The whole case of the petitioner was based on Lakshmi Vishnu Textile Mills Ltd. case (supra) which as pointed out already has been overcome by the Legislature itself by amendment in the Act by bringing in Section 2-A on the statute book, In result, both the writ petitions are, in our view, totally meritless and deserve to be dismissed.

Rakesh Reddy (Software Developer)     18 February 2015

Thank you for the reply,

I have gone thru the many links before I post my question. I stuck at 190 and 240 days.

My last working day would be 17th Mar, if I am eligible for gratuity. Otherwise I will stay back till 24th June'15, no concern about 22 days.

 

{As per discussion the 240 days include all off days/holidays etc……

Section 2(c) of the Act states that "continuous service" means continuous service as defined in Section 2-A(sic.). Section 2-A of the Act is as follows }

So by 17th Mach 2015, total days will be 266days for this year..!!! I think I will be eligible for gratuity.
As you said, I will submit FORM1 meanwhile.
Correct me if I am wrong.

 

Rakesh Reddy (Software Developer)     26 February 2015

Hi Daob,


I was searching on https://indiankanoon.org/doc/1068972/. I found the section 4(not less than 5 years) will dominate section 2(A)(4 years 240 days).

After going with the information you provided, I have given my resignation.

And also I come across about WRIT, which they can able to challenge the judgment.

I have Attached, stating the Section 4 will overtake sub section of 2A.

Please help me in sorting out, its very important to decide to withdraw resignation or not..!!!


Attached File : 670579634 aspinwall & co., kulshekar, ... vs lalitha padugady & ors. etc on 26 july, 1995.pdf downloaded: 381 times

Kumar Doab (FIN)     26 February 2015

1. You have posted that:

 

"

Hi Daob,


I was searching on https://indiankanoon.org/doc/1068972/. I found the section 4(not less than 5 years) will dominate section 2(A)(4 years 240 days).

After going with the information you provided, I have given my resignation.

And also I come across about WRIT, which they can able to challenge the judgment.

I have Attached, stating the Section 4 will overtake sub section of 2A.

Please help me in sorting out, its very important to decide to withdraw resignation or not..!!!




Attached File :

"

 

2. No One in this thread has asked you to resign.

You can resign or take back your resignation by applying your own judgment.

The following was posted:::::::::::::::::"Why don’t you work for another 22 days if your company is willing to pay Gratuity after another 22 days?

However obtain the response of the company in writing.

"
 

 

3. You can discuss your research in person with your able Labor Law Consultant/Service matters lawyer/law Firm/counsel and show all docs on record.

 

After going thru your posts it is reiterated that you must consult your counsel in person and take a qualified decision.

1 Like

Rakesh Reddy (Software Developer)     28 February 2015

Thank you ..!!!

I was not saying I resigned just because of these threads. Rather I am asking if I can go legally with 4 years 240 days clause(Section 2(A)) or wait for 5 year clause(Section 4), will it be Good to start, if not I do not attempt.

It is not not a 22 days, I was mistake in counting which excluded week-offs and holidays . Now it is around 80 days.

And thank you for the suggestion on how to approach.

Kumar Doab (FIN)     03 May 2015

The judgment that has been provided to you is self explanatory.

The Section;2A was inserted in the Act after proper notification and it was not inserted for decoration.

 

It is good to note that you have agreed to consult an able counsel in person.

The employee should always retain access to an able Labor Law Consultat and be a memeber of employee's/Trade Unions.


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