vishalsri09 Started The Discussion:

I am working in IT industry and I work 5 days a week.
My date of joining organisation : 09.04.2007
My Last working day in organisation : 05.03.2012

Since I am not completing 5 years, my company is not willing to pay gratuity amount due to me. As I have gone through different websites,I found a person who has worked 4 years 240 days becomes eligible for gratuity payment, though I didn't find any supporting clause or section. If this is true then I believe I am eligible for gratuity payment.

Can I request your expertise here as I have no knowledge on subject? Am I eligible or not? If yes, can you provide some suporting doc which I can forward to my company so as they pay my gratuity amount.

Many thanks in adavnce.

Vishal Srivastava
Dear Vishal

You have no doubt completed 4 years by 8th April 2011. Since you have resigned on 5-3-2012, you should have also worked for 240 days during the twelve month period from 4-3-2011 to 5-3-2012 to be eligible for gratuity. However any leave with wages availed by you during the said period of 12 months will be included in calculating 240 days.

HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Tel: 09930532927
Thanks Sai for your response.
I don't think I have availed leave in excess of 15 days which includes my casual, sick and Annual leave.
If you take that as well for accounting then even though it comes more than 240 days which makes me feel i am eligible. What do you think?

Can you please share some documental proof which states that a person who has served 4 years and 240 days in any organisation is also eligible for gratuity payment?
Is this required as I need to show my company that I am eligible?

Thanks again for your kind help.


Vishal Srivastava

Pl refer the book "BARE ACT Gratuity Act" for documentary proof. This book is legally valid.

Any person, who has completed 4.5 & more years, are eligible for gratuity.

Also, you may get court orders in google as well.

Hi Vishal

I can provide citation of a case in support of what I have said. You can show it to Ur company after procuring a copy of the judgment.

Mettur Beardsell Ltd, Madras V. Regional Labour Commissioner (Central) 1998 III LLN 414 ; 1998 LLR 1072 (Mad HC). You can also browse the chipinbiz company's website for e-books in which similar issues were dealt with.

HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Tel: 09930532927
Hi Vishal,

I support the statements of Mr Sai Kumar.Since you have worked for Four years and excess of five months, you are eligible for Gratutiy.We had incorporated this clause in the Gratutity Policy ammendmet of our company recently.


Dear Vishal,

Pl.go thro' the highlighted attached portions of the Gratuity Act (bare act) which are relevant to your case and you'll know how you are placed. Don't delay, put them on the defensive, apply for your claim in the prescribed form under proper ack. immediately and wait for exactly one month and then follow up on the lines of what the act says. Don't worry, don't delay.
There are umpteen no.of case laws similar to your's.
All the best.
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File Type: doc Payment of gratuity act.doc (77.5 KB, 1539 views)
Dear Sir,

For entitlement of Gratuity, one should complete 5 years of service. It is a must as per the
Gratuity Act.

But in one case, the Madras High Court gave a verdict stating that Completion of 4years, in 5th year if anybody put in 240 days of work, it should be treated as completion of 5 years of service and such person is eligible to gratuity.

Gratuity Act is central Govt.ACT. The Central Govt. have to amend it for applicability in all States.

Therefore, at present this completions of 4- years and 240 days in 5th year for gratuity payment is applicable in Madras State only. In other states, one should complete 5 years service.

In case, any management wants to pay gratuity as per Madras High Court's decision, It will be welcome aspect in the interest of welfare of employees. Nothing prevents.

LL.HR & IR Consultant
Dear sir, Agar kisi ne khabhi bhi apne esi card ka istmal nahi kiya hai to kya use jo esi ke liye rupee kate hai wo wapes mil sakte hai ya nahi. Ager mile sakte hai to kasie. thanks
I have worked for a reputed indian company for 4years & 9 months in a capacity of Senior Manager out of my total 22 Years of career with some of Good Companies. I needs the help/suggestations on below points.

1. If past employer is not willing to pay the Gratuity inspite of all provisions there, to whom should be approached since have worked for 4.9Years and eligible as per Gratuity Act.
2. Can any employer reduce the Fix Compansation(Fix Emmoluments) less than offered prior to joining without any reason to any individual Employee in between of Employment ( say atleast after working+2years), since the employer had Offered better prospects prior to joining his organiosation.
If Not than whom to ber approcahed for Justice...?.



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