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Dear Madhu,Thanks for your answers.Plz also answer my quesrry in laws section with the name pf tax deduction and explanation without warning leter.RegardsRanjeet
Dear Madhu,
Thanks for your efforts. Please let me know two things -
1. As per law an employee becomes eligible for gratuity after how many years, months and days (I think it is 4 years 10 months and some days) Please give the exact duration. Because I think it is not complete 5 years.
2. I want to have sound knowledge of C& B, Labour laws and taxation. Please suggest the name of books where I can found the relevent info.

As per Payment of Gratuity Act, it is 5 years and there are cases of refusing gratuity for an employee who had completed 4 years 11 months and 10 days (P. Raghavalu & Sons Vs. Addl. Labour Court, AP). However, once an employee becomes eligible for gratuity after having completed 5 years, any fraction of years in excess of six months shall be treated as one year for calculating the amount of gratuity. As such one who leaves after 6 years and seven months shall get gratuity for 7 years.

Similarly, continuous service has been intrepreted as uninterrupted service and one who has worked at least for 240 days (above the ground) or 190 days (below the ground, say mine) shall be treated as had continuous service.

Adopting this view there seems to be court verdicts allowing an employee to get gratuity provided he had worked for 4 years and 240 days in the fifth year. I do not have any copy of the said verdict. I believe that Madras High Court and Delhi High Court have made ruling as above mentioned.



Dear madhu as you used superannuation in you last comment can you share with us in detain regarding that . 1.what is superannuation ? 2. difference between superannuation and pf ?
By superannuation is meant the retirement on attaining the age specified in the standing orders or contract of appointment. It may vary from 55 years of age to 60 years depending upon the company policy. On retirement, whatever benefits are given are called superannuation benefits. It includes monthly pension, if any, also. Gratuity is also payable when an employee leaves the organisation on attaining the age of superannuation.
PF is different in the sense that it is a fund made by way of contribution by employee himself with a share of employer. That will be paid by the Employees Provident Fund Organisation at the time the employee leaves due to any reason including superannuation. Provident Fund Pension is also paid by the EPFO though the amount represents the one contributed by the employer.

Dear Madhu i have a doubt about the retirement age as mentioned by you " in between 55 to 60" can you tell me where or in which organisation employee retire at 55 ? sanjeev
In Kerala State there are private sector organisations which follow the state government employees' retirement age which is 55 years. Regards, Madhu.T.K
Dear Madhu
thanks for quick reply
i have a small doubt , i came to know when to hr people chating on superannuation saying " we are providing to our employees both pf and superannuatio O! its greate " out of 2 hr's one works in retail business ( provisionals).
my doubt is if the above is true how the bifercation of salary will be eg. we will include pf of the sides in ctc by caculating on basic .24 %
how we will do for superannuation benefits ?
is it only employer obligation to pay the employee like Gratuity?
ple. discuss.

sir/ mam, i have been in continuous service with an organisation for 4 years 7 months working 5 days / week . Am i eligible for gratuity.

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