R.N.Khola
Labour Laws & Ir
Sumitk.saxena
Service/manager-hr
Kumaresank
Labour & Industrial Laws
RAMESHANPT
Manager Hr
Exiafsergeant
Personnel & Industrial Relations
Keerthipranav
Executive - Payroll
Rajat Joshi
Hr Consulting ,trainer -creative Thinking
Cmmohla
Hrm, Ir & Adminstration
Deep_desh29
Good Player In Critical Situation
Kalpeshpatel
Labour Consultant
Vikram_hr
Services
Hrssonepat
Service
Rahul R Khodke
At Bombay Oxygen Corporation Ltd As Manager
+11 Others

Thread Started by #deep_desh29

Hi All
One of my employee recently resigned from his company services
I wants to preapre his full and final settlement.
Please tell me whether gratuity is applicable to him or not?
His date of Joining is 13.12.2004 and date of leaving is 30.10.2009
you can call me on
Deepak
9922888112
3rd November 2009 From India, Mumbai
Hi Deepak,
Gratuity is paid to those employees who have completed continous 5 years of services. In your case the fellow has not completed full 5 years so gratuity will not be payable to him.The way of calculating it is furnished below:-
from 13.12.04 to 12.12.05 is = 1 year
13.12.05 to 12.12. 06 = 1 year
13.12.06 to 12.12.07= 1 year
13.12.07 to 12.12.08 = 1 year
13.12.08 to 30.10.09= 9 mnths few days i.e. 1 year is not complete
Since 5 years are not completed therefore gratutity will not be payable.
I hope this info. suffices ur need.
Regards
MuktaS
3rd November 2009 From Germany, Duisburg
If the employee has completed less than 5 years of service, generally, he is not eligible for gratuity.
However, if your Company has a separate eligiblity norm for gratuity i.e. less than 5 years service. Kindly check your company policy before finalising the matter.
3rd November 2009 From India, New Delhi
he is not eligible for Gratuity , as per Gratuity act, completion of five year is required. Only 5 year not required when a person died or total disability. regards, Prof. RK Agrawal 9325860828
3rd November 2009 From India, Pune
for payment of gratuity completion of five years service is required . regards, sumit kumar saxena
3rd November 2009 From India, Ghaziabad
Deepak, Just check on this on as there was a judgement sometime back that if an employee completes 4 years and 240 days in the fifth year is eligible for the gratuity. Regards, Rajat
3rd November 2009 From India, Pune
Gratuity would be payable if he had completed 11 months
but in this case he is not eligible for it
One more month would have made him eligible
Bharath GM,
Franchise Partner,
Morpheus Human Consulting Pvt. Ltd., Bangalore
9900688663, 9036410663, 9844716737
,
3rd November 2009 From India, Bangalore
No, the gratuity is not payable as per act but many organisations have their own policy regarding gratuity like some organisation pays the gratuity after 3 yrs or 4 yrs as per the mmendment in their trust deed with the insurance company or the company own policy
4th November 2009 From Singapore, Singapore
Hi Rajat, Are u sayning about the judgement of Madras High court for the year 1996. Deepak
4th November 2009 From India, Mumbai
Hi Mukta, Thanks for reply. But in the year 1996 Madras High court has ginven one Judgement in the matter of Gratuity. Do u heard about that I wanted to confirm that also. Deepak 9922888112
4th November 2009 From India, Mumbai
Dear You are right in saying that a judgement was announced by the Hon’ble Madras High Court in the year 1996 which appeared in LLR as 1998 LLR 1072. Regards, R.N.Khola
4th November 2009 From India, Delhi
I agree with rajat. Gratuity may be paid if an employee completes 4 years and 240 days in the fifth year. Sanjay
4th November 2009 From India, Delhi
Gratuity becomes payable after putting in service of 4 years & 240 days as per recent ruling of High Court. This can be checked & confirmed from LIC. Regards,
4th November 2009 From India, Mumbai
Dear As requested plz find attached herewith the copy of the judgement which I have also received from this Cite itself. Regards, R.N.Khola
4th November 2009 From India, Delhi

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for gartuity your frnd is not eligible as per gratuity Act. Buti n full & final settelment (As per Company's own norms) he is eligible to get gratuity as a Ex gratia.. kindly told him to check his F&F settlement...
Regards
Kalpesh Patel
Labour Law Consultant
Gujarat
4th November 2009
Madras High Court Judement, under Payment of Gratuity Act.
I am sharing you a attachment of a Madras High Court Judement, under Payment of Gratuity Act in which the Eligibility of an employee to claim gratuity under the Payment of Gratuity Act, has been clarified by interpreting the continious service as 4 years and 240 days, as minimum elegibility criteria for claiming gratuity.
Roopchand C.N.
4th November 2009 From India, Hyderabad

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I agree with Deepak. As per the ACT if a person has completed 240 days of service, it has to be treated as continuity of service.
Hence in this case the person eligible for Gratuity.
Find attached the judgement passed by Madras High Court.
4th November 2009 From United States, Milpitas

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for the getting graduity benefit employee must be completed 5 years continous service within organisation. Vijay Pisal
4th November 2009 From India, Pune
Dear Deepak,
if he has completed 4 years & 240 days (in fifth year) continous service then he is eligible for Graduity.
In your case employee is eligible for Graduity as per act.
Vijay Pisal
:):):):):)
4th November 2009 From India, Pune
If a person completed his continuous service in single organisation 4 years and 240 days in 5th year then such a person is eligible for Gratuity.
4th November 2009 From India, Lucknow
Dear Deepak Pl. cleare his employement, as Industries or News Paper , any shop & under the ground work.
4th November 2009 From India, Gurgaon
Dear Sir,
Section 4 (2) of gratuity act ....part there of six months shall need to consider for gratuity. If that is the case excess of 4 years six months need to be paid.
Hope some experts will throw more light to this topic
4th November 2009 From India, Tiruppur
Basic criteria is completion of 5 years of service to qualify for Gratuity on resignation/retirement or discharge.
In this case the employee is not eligible.
As some body said,even if the company has a policy of benevolence, the amount so paid without eligibility will only be called an ex- gratia than Gratuity.
Where an employee having service more than six months over and above 5 years, that will have to be treated as 6 years. If it is less than six months above 5 years, the Gratuity is calculated for 5 years.
5th November 2009 From India, Indore
Dear All,Looking for female candidate for position - HR & Admin at Mulund (Mumbai) having 2-3 years of experience. Candidate can call on my cell no.9869415332.Regards,Rahul R Khodke
5th November 2009 From India, Pune
Dear Deepak, Grauity only applicable after 4 Years 8 month is applicable .please check once again with Grautiy act.
5th November 2009 From India, Madras
Company with ten or more persons employed or were employed, on any day of the preceding twelve months; are eligible to pay Gratuity to their employees who complete 5 years in their organization
Benson
5th November 2009 From India, Kollam
Hi Deepak, The employee has to complete a full 5 years in an organisation in order to get eligible for gratuity. So calculate and see for yourself. He wont be eligible for gratuity. Rgds, Jiffy
5th November 2009 From India, Mumbai
Employee is eligible for Gratuity, as he served for more than 4 years and 6 months, which has to be presumed as completed mandatory 5yrs of service for eligiblity.
5th November 2009 From India, Tiruchchirappalli
Hi Deepak,
Gratuity is payable on completion of 5 continuous years .
The definiton of continuous year is as follows: if the employee has worked in 240 days in a year that is considered as one complete year.
Hence if an employee has workwed for 4 years and 240 days in an organization he is eligible to get gratuity.
Regards
Tarun Gaur
5th November 2009 From India, Delhi
dear deepak, If the employee has not completed 5 years of service, he is not eligible for gratuity. you can also refer to the payment of gratuity Act for the same.
5th November 2009 From India, Delhi
Dear DEEP,
Gratuity is payable to the employee in your case, as he has completed 4 years, 9 Months of service.
For calculation part of gratuity, there are different rules and if an employee has worked for 240 days in the previous/current year than that is to counted as one year (Only for calculation purpose - eligibility for one year)
Do you know how to derive the amount ? If not pl revert to me.
Thanks,
Exserg
5th November 2009 From India, New Delhi
Hi:confused:
Joining Date :13-Dec-2004Sepration Date :30-Oct-20094 YEAR 10 MONTHS 17 days
Employee are applicable for GRATUITY as per rules
Check below point before you calculate GRATUITY
1. Your company policy are applicable for GRATUITY< less than 5 years
Reagrds,:-D
Deepak B
5th November 2009
I have attached a particular case judgement on Gratuity from Madras high court. It says 4 years and 240 working days is enough to qualify. V Chithranath
5th November 2009 From India, Madras

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Hi Deepak and all friends,
before comming to a conclusion on this subject i advice you all to go through the Madras High Court Judgment passed in WP No. 21350 Of 1987, reported 1998 LLR 1072, where in it was held that completion of 240 days for the Fifth year in continuity is sufficient for payment of Gratuity.
No doubt, the Act is strict on not less than 5 years....... i would also like to say that the above judgment is not a precedent for all.
still i would like to share views on this
sheshu
5th November 2009 From India, Hyderabad
Dear Rahul
I am Anagha Sakpal with reference to your above requirement would like to know some more detail job profile.
I am 23 yrs old having experience in HR more than 1 yr.
You can contact me at
Looking forward to your positive reply
5th November 2009 From India, Thana
[QUOTE=anaghasakpal;942304]Dear Rahul
I am Anagha Sakpal with reference to your above requirement would like to know some more detail job profile.
I am 23 yrs old having experience in HR more than 1 yr.
Qualification : B.M. S graduate specialised in HR
Profile handled in HR and Payroll, Recruitment.
You can contact me at
Looking forward to your positive reply
5th November 2009 From India, Thana
One of my friend worked with a Pvt.Ltd firm for more than 10 years. The management terminated his service bcoz of mis-conduct and non-performance. When he asked for gratuity Mg.Director flatly refused saying "we don't give any gratuity" and taken a no -dues (from firm) certificate from him. Is it right practice ? What action can take against this firm now ?
5th November 2009 From India, Delhi
If the emoployee is leaving during the fifth year you need to consider the days for that particular year. If he completes 240 days in fifth year you need to process the gratuity eventhough he has not completed the 5th year.
5th November 2009 From India, Gurgaon
Please speak to Labour Deaprt/Officer. with your all details. They will guide you better. And then update you knowledge to all.
5th November 2009 From India, Mumbai
Dear Deepak, i have also recently joined the HR field, but as per my knowledge the person who has completed 5 yrs of services is eligible for gratuity. Regards, Vikas
5th November 2009 From India, Pune
Not required as he has not completed his 5 years of services. As a HR person, you can suggest him to complete another few days service and take the eligibility for benefit. Regards, Vikram
6th November 2009 From India, Hyderabad
As per the Gratuity Act, an employee becomes eligible for gratuity if he completes 5 years of continuous employment or part thereof in excess of Six months. This employee is eligible for Gratuity. Kindly include the same in the F&F.
6th November 2009 From India,
Dear Deepak, As per act if a person has worked for 240 days including holidays than it will be be assumed as a complete year. In your case the person has worked around four year and 10 months which is sufficient to be calculated as five year.There is a rule that Gratuity is payable after 5 year but apart from this there are situations and conditions.For simple understanding In normal cases if a person has worked for 8 year and 9 months than we are paying in gratuity of 9 year.So why not in this case.So please pay him.RegardsAmit
7th November 2009 From India, Pilani
hi Deepak
I want to tell you that GRATUTY is only applicable when an employee has complited 5 yrs. if he / she has not completed 5 yrs of his service then he is not applicable for gratuty. After 5 yrs. if he / she has completed another 6 months then that would be count as 6th yr. of their service & if he / she has not completed his 6 months then he / she would be counted as only 5 yrs. of His service. I am sending yopu an attachment with this mail.
I hope this can help you.
Regards
Suman Parashar
7th November 2009 From India, Gurgaon

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Yes every company has its own way of calculting gratuity for eg. In my company we pay gratuity according to monthly % of the employee stay in co.
For service less than 24 months:nil
for service of 25 months to 36 months = 25% of gross salary
for service of 37 to 48 months = 50% of gross salary
for service of 49 moths and over= 100 % of gross salary
regrds
khalid ghafoor
dm-hr
lucky cement ltd
karachi-pakistan
7th November 2009 From Pakistan
Dear friend,
Gratuity is applicable, although he has not completed continous service of 5 years. If an employee completes 4 years + 240 days continous service Gratuity to be paid considering it as completion of 5 years service.
Bai,
P.Sathish Kumar

9th November 2009 From India, Jaipur
Dear All

please suggest me ragarding the Gratuty

i am joined in one organisation as on 08.05.2000

they maintained my name in Pay roll after 6 months

i have been resigned from That Organisation as on Feb 2006.

when i ask for Gratuty , the HR Manager replied that there has no provision made regarding that period so they are unable.

after that i again asked for my service certificate HR AGM he given the Gratuty certificate for the period 5th may 2000 to Feb 2006 , with conduct Good.

with that Service certificate i sent a notice through MY ADVOCATE

again they(the same AGM) replied that that person (me) is not worked in more than 4 years.

his claims are shetteled.

how the same person saying lies in two statements?

at the time of Resignation My Salary 5500/-PM

SO THE ADVOCATE suggested me that 'your claim amount is below 10000/-, why did you put a form in court, decide your self what to do, or write a letter to Labor commisioner regarding this issues.

if i ask for interest, and bonus on that howmuch i will get ?

how to fight with the previous employer, the advocate cost is app 3000/-

the employer is MLA ALSO.

PLEASE SUGGEST ME

Ravindra Kumar Choudhary

9032234203
21st April 2010 From India, Hyderabad
Gratuity is payable to employee... If you make delayed payment you have to pay the interest on the eligible gratuity at the rate priviling at that time.
22nd April 2010 From India, Tiruchchirappalli
Regarding Gratuity I had come across a judgement wherein it said if a person completes 4 years and 240 days of working, he is eligible for Gratuity. V Chithranath
23rd April 2010

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