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subir Gupta   05 July 2016

Gratuity eligibility

My self worked  in a IOCL subsidery  Infrastructure company  From 13/7/2011 to 13/5/2016 (4 years & 10 months). Company released all the staffs From EPC division due to poor financial condition. I was parmanent pay roll employee. Now my question is may i eligible for gratuity pay ? Company HR person saying I am not eligible. Please help me.


Regards----- SUBIR GUPTA


 8 Replies

Kumar Doab (FIN)     05 July 2016

Which Gratuity Rules apply e.g; Payment of Gartuity Act,1972?

Did establishment release From EPC division citing poor financial condition, in writing?

Or Did you resign?

Is IOCL principle employer?

Attach applicable gratuity rules and post full facts?

subir Gupta   15 July 2016

Yes they are leaving us from EPC division due to poor financial condition & they had given us by written.

Which gratuity rules they are following I dont know.But the Sr. HR manager mailed me today that continious 5 years service is eligible for gratuity.

No,we are not principle employee of IOCL.No, I am not resigned from company.But in  the experince certificate they mentioned that myself resigned from company on my own accord.In last yast year  myself taken almost  38 leaves. I am attaching you the Madras High Courts verdict regarding Gratuity & my Joining date is 13/7/2011 & releasing date is 13/5/2016. I need your suggestion,advice badly.please help me..

Attached File : 20160715151759 41514454 94783 gratuity eligibility 4 years 8 months service gratuity judgement 240 days.pdf downloaded: 132 times

Kumar Doab (FIN)     15 July 2016

We are aware of the judgments and citations have  been discussed unlimited number of times in many threads at LCI e.g;



You alone can and have to  find out and mention the 'Gratuity Rules' that apply in your case.

Ask the HR/MD etc to confirm.Also ask if the Compulsory Insurance for Gratuity was obtained from FI say LIC? YOu may also object to false record "myself resigned from company on my own accord.' This record might have been falsified to avoid claim of retrenchment compensation.

The eligibility has to be related to the rules.

If Payment of Gartuity Act,1972 apply, then you are eligible.

Approved leave is counted in service.

Submit FormI and mention that Notice of Determination of Gartuity and Payment has not been supplied. And/or the declinature by email is sufficient to approach against employer for claim of Gratuity, if you are eligible as per applicable rules.


If it is IOCL subsidiary then it may be possible to claim IOCL as Principle Employer.


This IOCL subsidiary seems to have closed only one division i.e. EPC division.

Apparently there was no lay off compensation and attempt to relocate and absorb.


If you are unable to rsolve on your own then, Beyond this you  may engage a very able counsel specializing in labor/service matters.



subir Gupta   18 July 2016

Respected sir,

Thank you for your kind advice.One thing I want to know from you that is 4years 240 days = 5years where week is 5days. Myself posted at project site where week was 6 days & total working period is  4 yrs & 301 days..Which is unmatched with  supreme courts judgements. So  which rule  is applicable for me for service period count?  

Regards= Subir Gupta

Kumar Doab (FIN)     18 July 2016

Querist @ Sabir Gupta,


You have been replied today in another thread at:


It si a long and highly illustrated thread and by now you should have understood that if establishment works for 6 days/week then employee should have rendered continuous service of 240 days........................and   if establishment works for less than  6 days/week then employee should have rendered continuous service of 190 days.


You should read slowly and carefully.

If you are facing difficulty take help of elders in the family.


You have been advised in detail.

If you are unable to resolve on your own then, beyond this you  may engage a very able counsel specializing in labor/service matters.

Kumar Doab (FIN)     18 July 2016

There is n o need of any judgment.

The Act is a statue and self sufficient. 

subir Gupta   29 July 2016

Dear sir, 

Company"s senior HR manager mailed me yesterday that ---- I am not eligible for gratuity as per provision of Gratuity act,1972 on account of falling short of continuous service of 5 years.

Sir, I am not responsible for shortfall .Because myself not resigned from company.They leased  due to their poor financial condition by written. Myself not resigned from company.

Now what will be my next step? Please advised me.

Regards- Subir Gupta







Kumar Doab (FIN)     29 July 2016

There are unlimited number of illustrated threads at LCI:



Write to good offices of appointing authority (under proper acknowledgment) ,MD and demand to call back the communication of HR personnel, aimed to avoid payment of Gratuity, and pay gratuity.


If you are unable to resolve by your own skills, entrust to a very able counsel specializing in labor/service matters.




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