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Naveen N Nair   11 June 2024

What is the gratuity payout eligibility from an employer view

Hello Experts, 

I am looking for information regarding the Gratuity Payout Eligibility. I am aware that many companies follows the payout eligibility as 4.8 years (4 years and 240 days) irrespective of whether they work 5 days or 6 days a week. Could you kindly let me know the correct approach for payout eligibility. Should it be 4 years and 190 days or 4 years and 240 days. Is this something that an organization through its management decision decide upon? 

Thanks in Advance


 8 Replies

T. Kalaiselvan, Advocate (Advocate)     11 June 2024

The minimum period for eligibility for gratuity is what you have already stated.

If your company decides to go ahead with the precedence and general rules without any financial loss to the outgoing employee, you may proceed.

Naveen N Nair   11 June 2024

Thanks for your response, Sir. So,with your above statement,incase the employer decides to pay Gratuity only upon completion of 4 years and 8 months, can employee go to labour court and fight to get the Gratuity amount as he/she has completed 4 years 190 days. If so, will the court of law be against the rule of 4 years and 240 days for a 5 day working organization. 

kavksatyanarayana (subregistrar/supdt.(retired))     11 June 2024

The Labour Court follows the Rules and depends on the merits.

T. Kalaiselvan, Advocate (Advocate)     11 June 2024

Let employee approach court with his grievances,  the court will decide the petition as per prevailing law.

Sudhir Kumar, Advocate (Advocate)     12 June 2024

epeated on

Naveen N Nair   13 June 2024

Thank you all for your time in addressing my queries. 

Amit   14 June 2024

I previously worked with WBSEDCL (A West Bengal Govt. Enterprise) as Divisional Engineer(IT&C). I resigned from the services of WBSEDCL on 31.05.2018. Subsequently joined the Airports Authority of India on 06.06.2018 as Manager(IT) in the scale 60000-180000. When I resigned from WBSEDCL I was on a pre-revised scale (15600-39100 with GP 6600) where my (Basic +GP+DA) was 65000.

WBSEDCL revised the pay scale which was effective from 01.01.2016 but revised pay and allowances was given from 01.01.2020 hence no arrear was given for the period from 01.01.2016 to 31.12.2019. Hence I was not getting any arrear for the period 01.01.2016 to 31.05.2018 (my date of exit).

During Oct 2023 AAI HR issued a circular where it was mentioned that “The employees who have been recruited in AAI through Direct recruitment from other CPSEs/state PSUs/Govt. Dept through proper channel, pay protection will be given as per DPE guidelines immediately before joining AAI”

I have submitted the application in AAI HR during Oct 2023 as I have joined AAI through channel and submitted my NOC during interview process after cleared the written examination. After submission of my application AAI HR requested me to submit the revised pay slip of WBSEDCL (if revised) as on 31.05.2018.

In reply to the AAI HR Memorandum I have submitted the pay fixation letter from WBSEDCL as though revised scale of pay in WBSEDCL effected from 01.01.2016 but revised pay and allowances was given from 01.01.2020. But as I was on WBSEDCL on 01.01.2016 to 31.05.2018 they fixed my basic as on 31.05.2018 notionally and my basic was fixed as 73700/- as on 31.05.2018. As My basic was fixed notionally and hence no arrear was given from 01.01.2016 to 31.05.2018. DA rate is 0% as on 31.05.2018.


In such a scenario whether I am eligible for pay fixation in AAI as per my last revised basic in WBSEDCL which was 73700/- from the joining date in AAI (06.06.2018)? Since I am not getting any arrear for the period 01.01.2016 to 31.05.2018.

Or my pay fixation is done in AAI as per my pre-revised scale (Actual pay drawn which is mentioned in my last salary slip i.e. May 2018) where my (Basic +GP+DA) was 65000/-

 please let me know?


T. Kalaiselvan, Advocate (Advocate)     14 June 2024

You better post your query in a new thread and try to be brief in your question. 

The lengthy question is repetitive in nature and may not convey proper meaning here because this is neither the personnel and industrial relationship department nor it is a HR department..


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