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Sarjooram Sharma (Assistant Labour commissioner)     26 May 2010

Payment of Gratuity Act

Corporation made its own scheme for gratuity:
Section 2(f) and 4(5)- Gratuity - Order directing the petitioner to pay the amount of gratuity to concerned workmen - Provisions of Act apply in the cases - as the petitioner - Corporation is "employer" - And corporation cann not say that the Act does not apply - Merely because coporation hasf made their own scheme of Gratuity - Orders passed by the authority are upheld. There is no exemption under the Gratuity Act 1972 in favour of the petitioner - corporation and therefore Payment of Gratuity Act 1972 would be applicable to the petitioner - Corporation also.


 5 Replies


Thanx sir, can get this judgement/citation!

Sudarshan Nair (Computer Engineer)     08 June 2010

Hi All,

I am a software engineer in a MNC Bangalore. I've completed my 4 years & 6 months of employment.

Will I be eligible for Gratuity? Is it mandatory to complete 5 years?


SHARAD CHANDRA DANEJ (Asstt. Manager)     09 June 2010

Dear Sudarshan


Yes, I think its mandatory to complete 5 years service in a co. to be eligible for gratuity as per existing provisions of the act.



Azeemuddin (Project Manager)     11 October 2010

I am also in a similar situation. I worked for an employer for 4 years and 8 months and 3 days. They say you need to complete 5 calendar years. Gratuity act section 2 states more than 6 months continuous service is considered as 1 year. Madras High court also has passed a ruling in one case. I would like to know if the Madras High court ruling can be cited as a precedence to put forth a claim for gratuity.

Pramod Harkisondas Divecha (private)     19 October 2010

"More than six months to be considered 1 year" is applicable to the calculation part once the eligibility of 5 years is established. Therefore, with 4 years,8 minths and 3 days continous service one does not become eligible to receive gratuity.

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