Alpesh Joshi 13 January 2021

Gratuity rules of minimum service in it/kpo/bpo

Hi All, I have served an organisation for 4 years 6 months and 10 days which makes it gratuity eligibility of 4 years and 190 days in a kpo industry working for 5 days a week. I have submitted notice through an advocate to the organisation asking gratuity , I have received response from advocate of organization that a minimum of 5 years to be served for gratuity. I saw many posts regarding these gratuity period but people have not posted the solution of their queries. Please share your experiences if you have received gratuity after serving 4.6 years in a IT/kpo/bpo industry and how ?

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Quick Summary

This discussion addresses whether employees in the IT/KPO/BPO sector are eligible for gratuity after serving 4 years and 6 months, falling short of the typical 5-year minimum. Participants share insights, citing Section 2A of the Gratuity Act which may allow claims if 190 days were worked in the final year of a 5-day work week. Advice includes consulting an advocate, filing a complaint with the Labour Court or Controlling Authority if the employer refuses payment, and using prescribed forms like Form I and Form N.

8 Replies

SHIRISH PAWAR, 7738990900 (Advocate) 13 January 2021

Hello, Your advocate has rightly sent notice demanding gratuity. Your employer has rejected your claim so now you have to proceed further and approach labour court and file complaint against your employer.

Nandini Warrier 13 January 2021

Good afternoon, You are eligible for gratuity if you've worked for 5 years, but there are few situations where even if you've not worked for a full calendar year, you eill be considered eligible to claim gratuity, under Section 2A of the Gratuity act. you've worked for 190 days of a year in a 5 day working week establishment, hence you are eligible to claim gratuity under the act. Please talk to the company first in an attempt to resolve this confusion, and if it still isn't resolved, you can file a complaint against the Company under Section 8 of the Gratuity Act. The controlling authority will then take into consideration your situation after that. Refer to these links for more details regarding Gratuity Act- https://www.lawyersclubindia.com/articles/a-brief-summary-on-payment-of-gratuity-act--7617.asp https://www.lawyersclubindia.com/articles/no-limitation-to-claim-payment-of-gratuity-7582.asp Hope this helped! Regards, Nandini.

Ritesh Maity (Advocate | Labour & Industrial Law | Consumer Law) 13 January 2021

To claim gratuity, you need to send Form I to your employer. If the employer fails to respond/ pay within a month, then you can make an application before the Controlling Authority in Form N. These forms are available in the Payment of Gratuity Act. These are prescribed format under the Act.

Pradipta Nath (Advocate) 13 January 2021

Do as suggested by Advocate Ritesh.

Alpesh Joshi 14 January 2021

Thank you all for your advice. The question is is there any reference where gratuity is paid for such period? Any case reference ? Because I just want to make sure that ho ng to the court and paying to the advocate is worth.... And I will get the gratuity or else in greed of gratuity I will end up paying court and legal charges and end up with nothing.

Pradipta Nath (Advocate) 14 January 2021

Please tell me one thing:- Did you worked for this 4 years 6 months and 10 days on result guaranteed basis or simply on work basis! What do you think Advocates charges for guaranteed result orientation or on activity basis? You have been made enough obliged, despite you want case laws! I mean come on Joshi Ji!

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Ritesh Maity (Advocate | Labour & Industrial Law | Consumer Law) 14 January 2021

Have a conference with a lawyer and surely he will give you plenty of case laws. :P