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
From India, Nagpur
Labour Laws & Ir
Statutory Complaince/labour & Employment
P Ramachandran
Hr & Administrative Manager
Mahaender Siingh
Private Job
K C S Kutty
Labour Laws
Asst. Manager - Hr
+1 Other

p ramachandran

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.

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?
M K Chopra

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.

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

Attached Files (Download Requires Membership)
File Type: pdf Gratuity.pdf (69.5 KB, 1765 views)

K C S Kutty

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)

From India, Madras
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

From United Arab Emirates, Abu Dhabi
Mahaender Siingh

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.

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
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

Attached Files (Download Requires Membership)
File Type: zip death gratuity .zip (70.3 KB, 667 views)

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