R.N.Khola
Labour Laws & Ir
P Ramachandran
Hr & Administrative Manager
Bhuvana.AL
Private
Mahaender Siingh
Private Job
Syedsami
3 Yrs In Hr
Essykkr
Statutory Complaince/labour & Employment
K C S Kutty
Labour Laws
NsBhanuprakasha
Asst. Manager - Hr
Dbhatuse
Knowldge Of Payroll
Jiteshk
Sales And Training
+6 Others

Thread Started by #chopramk2003

Dear All, One of employee in my company resigned after a service of 4 years 10 months. Is he is eligible for Gratuity. Pl. explain. Regards M K Chopra
12th September 2009 From India, Nagpur
He is elegible only after completing 5 years service in an establishment.After the completion of 5 years only his elegiblity arise.
After his confirmed elegiblity only the calculation of gratuity can be made according to the provisions of Gratuity act.
12th September 2009 From India, Madras
Dear P Ramachandran
Thanks for your quick reply.
Let us conclude my question from another angle.
My employee has worked 240 days in the last 5th year, and he is clamming it as a full year for the purpose of eligibility for gratuity.
Is he right?
Regards
M K Chopra
13th September 2009 From India, Nagpur
Dear M K Chopra,
Strictly according to the Payment of Gratuity act, 1972, the employee is not entitled to any gratuity because of the non completion of five years continuous service as per section 2A of this Act but according to the Judgement of the Hon'ble Madras High Court he might be claiming gratuity from you.Now it is up to you whether after going through the judgement of the Hon'ble High Court you want to give the gratuity amount or contest the case.
Regards,
R.N.Khola

13th September 2009 From India, Delhi
For your clear reference, herewith i have attached the gratuity file. it will give proper guide lines.
13th September 2009 From India, Madras

Attached Files
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File Type: pdf Gratuity.pdf (69.5 KB, 1556 views)

Dear Mr Chopra,

I know that you are raising this doubt only for inviting responses from other members. Because this issue was discussed many times in this forum or cite legal. However, once again I give my interpretation. For payment of Gratuity -

1. First of all the Payment of Gratuity Act 1972 ( please see Section 1(3)

2. The employee must under the definition Section 2 (e)

3. Gratuity shall be payable to an employee on the termination of his employerment after

he has rendered CONTINUOUS SERVICE for not less than five years. Section 4

4. CONTINUOUS SERVICE is defined in Section 2 A. If an employee has actually worked 240 days during the period of twelve calendar months preceding the date with reference to which calculation is made.

No where in the Act or Rules it is mentioned that the employee has to complete five full calendar year for becoming eligible for gratuity. Completion of 240 days can be treated as completion of one year of continuous service.

Hope this will clarify your doubt. In case of any doubt, please give the exact date of the employee joining the organisation to date on which he is terminated, number of days he actually worked during the last five years, year wise, and all information as per Section 2-A (1)
13th September 2009 From India, Madras
Hi,
This is sami from abu dhabi besically i am from Hyderabad. I am working here in abu dhabi but in UAE gratuity fanda is totally different. Here if employee completed one year he will be eligible for Gratuity.
Syed Sami
13th September 2009 From United Arab Emirates, Abu Dhabi
Dear All,
One of our employees who joined our organisation in Apr-09 and expired on 15th July 09. As per the gratuity act he is eligible to get his gratuity amount.
Please guide me how it will be calculated, what is the legal way to disburse this. We have gratuity fund with LIC what is the procedure to claim this.
Regards
13th September 2009 From India, Faridabad
mahender ji, he will never entitele for gratuity since he joined in apr-09 and expired in 15 july-09 a continuous service of 5 year is must to entitele for gratituity
13th September 2009 From India, Delhi
Hi, please find information about Death on Gratuity. we have used in our company as per attached file & as per clinet guide. Regards Deepak B
14th September 2009

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File Type: zip death gratuity .zip (70.3 KB, 505 views)

Yes Mr. Mahender, The deceased legal heirs' are entitled for gratuity as well as pension. Calculation will be based on his age and his remaing tenure (i.e. retirement age) Regards, Manoj Nair
14th September 2009
Mr. Chopra, Your employee eligible for Gratuity amount, because of pl, find the attachment of Honorable madras High court decision. Regards, N.S. Bhanuprakasha
14th September 2009 From India, Gurgaon

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File Type: pdf Gratuity Madras High court Judgement.pdf (1.55 MB, 164 views)

he is definately eligible for gratuity as the basic criteria apart from the fixed 5 yrs is that he shud have completed 4 yrs and 240 days in his job.
14th September 2009 From India, Ahmadabad
Grauity is 15 days' salary for every completed year of service. It is calculated as under:
Wages/26x15xNo. of years of service.
Here it will be:
Wages/26x15x1/12x3.5
Assuming his wages were Rs.5000/- Te Grauity will work out as:
5000/26= 192.00x15=2880x1(one year) =2880/12(months) =240x3.5(months of service)=Rs.840.
Trust this answers your query.
Cheers!!!
Vasant Nair
15th September 2009 From India, Mumbai
Dear Sir,
I have a query of the same kind. I was suppose to complete my 5 year tenure on September 13,2009 in NIS Sparta(A reliance ADA compony). But due to change in the engagement model I was asked to move to Reliance Communications(Flagship company of Reliance ADA group) on August 20th,2009. Would I be eligible for gratuity. Would appreciate if you reply.
Regards Jitesh Kumar.
15th September 2009 From India, Mumbai
mahender ji, he will never entitele for gratuity since he joined in apr-09 and expired in 15 july-09 a continuous service of 5 year is must to entitele for gratituity

if you don't know the law than never comment, for your knowledge please go through section 4(c) of the Act:-
(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
15th September 2009
Your reply is only partly correct. first proviso of Section 4 of Payment of Gratuity Act 1972 reads as " Provided that the completion of continuous service of five years shall not be necesary where the termination of the employment of any employee is due to death or disablement".

15th September 2009 From India, Madras
Hi,
1. In case of death or disablement there is no minimum eligibility period.
2. The completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement
3. In the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs
4. The nominee / legal heir will get the maximum ceiling of Rs.3,50,000/-
4. In normal cases only, the formulae will be taken for consideration.
Regards
Bhuvana.AL
21st September 2009 From India, Madras
Dear ALL,
One of my friend have the left the one company after serving more than 10 year. now his pf amt is withdrawal but family share is yet to be withdraw. kindly advice what is the process of claiming family share. He is 35 years old and working in another company where pf is not deduction by company.
Dinu
22nd September 2009 From India, New Delhi
Dear Mr. K C S Kutty
I have an issue.
My father was a govt. servent and expired on 30.03.2004. He had completed 19 years 8 Months and 22 days total service. Can you tell me the total gratuity eligibilty based on the above service ?
Looking for your kind attention and reply.
thanks
sha
23rd January 2010 From India, Thiruvananthapuram
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Today, 12:22 PM
irappa_k <link updated to site home> <image no longer exists>
Join Date: May 2010
Posts: 2
Gratuity elgibilty
Dear Sir,
I have completed 4 years and 10 months service in my present organization and i have accumlated leaves of 130.
Whether i am elglible for gratuity claim or not?
I have gon through the Gratuity law and it is saying that completion of 5 yrs only elgible for Gratuity with permited accident or death of employee with the exp. of 4 yrs and 240 days in 5th yr of service.
Please clarify.

29th May 2010 From India, Pune
The gratuity act has been ammended. The amount 3,50000 has been ammended to 10,00,000. Check Gazettte Notification.
29th May 2010 From India, Mumbai

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File Type: pdf Gratuity Act (Gazette Notifications) [1].pdf (726.5 KB, 76 views)

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