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Thread Started by #np9001

Hi All, Somebody please help me for this question.I have completed my 5 years after joining date in a company.So am i eligible for the Gratuity. Reply me.....
19th December 2009 From India, Mumbai
Dear Mr. NP,
Yes Gratuity will attarct those 3 months of probation as well.
It starts from the day when you joined and number of years counted accordingly from the day you joined the organisation.
Regards,
Amit Seth.
19th December 2009 From India, Ahmadabad
Hi
When an employer had regularized your services after 3 months of probation, it implies you have satisfactorily done your services with the employer, there fore the probation period is also taken in to consideration for the period of 5 years for eligibility of gratuity. So you are eligible.
Mohan Rao
Manager HR
19th December 2009 From India, Visakhapatnam
Hi, yes you are eligible for Graduity, same is will be paid to you on retirement or resignation , you can apply for graduity claim immediatly after resignation and employer has to pay the same withing 30 days from the date of claim form else he will have to pay inrest on it. if emloyer refused the payment to you , you can file a complaint before labour commisioner in your area where your office is situated and he will send notice to your employer for payement.
19th December 2009 From India, Pune
If you have completed 5 years of continuous service with the organisation, you are eligible to receive gratuity. For details of the amount you are eligible to receive, please ready gratuity act in combination with your company's policy.

19th December 2009 From India, Delhi
Gratuity is payable once you complete continuous employment of 5 years in a Co. The period of 5 years includes probationary period also.
Incidently when one gets confirmed after successful completio of probationary period, oit implies confirmation from the date of joining.
Best Wishes,
Vasant Nair
20th December 2009 From India, Mumbai
Yes ofcourse you are entitled for gratuity, as you have completed 5 years, after two years normally one is entitled for gratuity. regards Lovekhusi
20th December 2009 From Saudi Arabia, Jiddah
Hi,
Gratutity will be paid to you w.e.f the date of your joining the organisation, probation period is automatically covered in five years because if probation period had completed it means company was satisfied with your performance. therefore your gratuity should be considered from first day of job.
20th December 2009 From India, New Delhi
Hi If your company is subscribed to employees group graturity fund you are eligible for gratuity payment, the benefits will be available to you on resignation / retirement / severance of service.
20th December 2009 From India, Hyderabad
Is gratuity payable only in full and final settlement OR we can ask for gratuity after completion of 5 years. Please advice.
20th December 2009 From India, Mumbai
If you had joined the Organisation at Payroll as per term & condition of your Appointment letter sice your begaining, than probation period will be calculated in the tanure of 5 years. Thanx Ramesh
20th December 2009 From India, Mumbai
But some organisations say that their employees are eligible for gratuity after 10 years, especially teaching establishments. They also mention it in their contract. Please clarify on this aspect.
20th December 2009 From India, New Delhi
Dear Mr.NP
as per law, an employee is eligible for payment of gratuity after completion of 5 years of service which includes probation also. Further, even if the employee worked for 4years and240days in the 5th year then also he is eligible to get gratuity.It is statutory. It shall be paid with in 30 days from the date of relief from service failing which you can file a petition before the Asst/Deputy comm. of labor in your area.
Regards
A .Elangovan
20th December 2009 From India, Madras
Hi, Please go through the attachment, I am sure you will get an answer for all your Question’s Anita
20th December 2009 From India, Mumbai

Attached Files
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File Type: doc Abstract of PAYMENT OF GRATUITY ACT & RULES, 1972, FORM U[1].doc (22.4 KB, 1576 views)

Dear NP
it is clear in act that
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
so you are eligible for Gratuity
regards
bhupesh
20th December 2009 From India, Pune
if you have completed 5 year contuinious service with your organization then you r eligible for gratuaty when you would be leaving your organization or at the time of retirement or superannuation. even some organization having their own law they can pay gratuaty even after completion of 1 year as well for example airtel.
Regards
Amit
20th December 2009 From India, Delhi
It is not TWO years. It is FIVE years of continuous employment and Gratuity is payable only when the employee leaves the organization.
Please do make it a habit to read for proper understanding of at least the basic labour laws.
Vasant Nair

21st December 2009 From India, Mumbai
You are eligible to get gratuity for the years subject to completion of 240 days according to gratuity act.
21st December 2009 From India, Hyderabad
Hi Dear,
Plz read Payment of gratuity Act 1972 to clear your doubts.
Usme clearly mention hai ki when an employee completed his/her emploment in an organization without any break then he/she will be eligible for Payment of Gratuity.
regards,
ritu bhatnagar
21st December 2009 From India, Delhi
you are eligible for gratuity yar after completing 2 years and 275 days you are eligible for gratuity
21st December 2009 From India, Pondicherry
Hai,
Yes as per the payment of Gratuity Act you are eligible for Gratuity, which is calculated at the rate of (15/26 )* completed years of service and the wage component of Basic + DA proportionate to that the calculated factor should be given as Gratuity.
However if the Employer wants he can give over and above the calculated amount at his discretion.
Regards
Premson
21st December 2009 From India, Mangaluru
Yes, you are entitled for Gratuity.
Since, Gratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. However, under Gratuity Act, gratuity is payable even to an employee who resigns after completing at least 5 years of service.
21st December 2009 From India, Bahadurgarh
Hi

Gratuity is a lump sum payment to employee when he retires or leaves service. It is basically a retirement benefit to an employee so that he can live life comfortably after retirement. However, under Gratuity Act, gratuity is payable even to an employee who resigns after completing at least 5 years of service.

In DTC Retired Employees v. Delhi Transport Corporation 2001(4) SCALE 30 = 2001 AIR SCW 2005, it was observed that gratuity is essentially a retiring benefit which as per Statute has been made applicable on voluntary resignation as well. Gratuity is reward for good, efficient and faithful service rendered for a considerable period.

Act provides for minimum gratuity only – The Gratuity Act provides only for minimum gratuity payable. If employee has right to receive higher gratuity under a contract or under an award, the employee is entitled to get higher gratuity. [section 4(5)].

Employers liable under the scheme - The Act applies to every factory, mine, plantation, port, and railway company. It also applies to every shop and establishment where 10 or more persons are employed or were employed on any day in preceding 12 months. [section1(3)]. Since the Act is also applicable to all shops and establishments, it will apply to motor transport undertakings, clubs, chambers of commerce and associations, local bodies, solicitor’s offices etc. , if they are employing 10 or more persons.

Employees eligible for gratuity – ’Employee’ means any person (other than apprentice) employed on wages in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work, whether terms of such employment are express or implied, and whether such person is employed in a managerial or administrative capacity. However, it does not include any Central/State Government employee. [section 2(e)]. Thus, the Act is applicable to all employees - workers as well as persons employed in administrative and managerial capacity.

Gratuity is payable to a person on (a) resignation (b) termination on account of death or disablement due to accident or disease (c) retirement (d) death. Normally, gratuity is payable only after an employee completes five years of continuous service. In case of death and disablement, the condition of minimum 5 years’ service is not applicable. [section 4(1)].

The Act is applicable to all employees, irrespective of the salary.

Amount of gratuity payable - Gratuity is payable @ 15 days wages for every year of completed service. In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. - - In case of seasonal establishment, gratuity is payable @ 7 days wages for each season. [section 4(2)].

Wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [section 2(s)].

In case of employees paid on monthly wages basis, per day wages should be calculated by dividing monthly salary by 26 days to arrive at daily wages e.g. if last drawn salary of a person (basic plus DA) is Rs. 2,600 per month, his salary per day will be Rs. 100 (2,600 divided by 100). Thus, the employee is entitled to get Rs. 1,500 [15 days multiplied by Rs. 100 daily salary] for every year of completed service. If he has completed 30 years of service, he is entitled to get gratuity of Rs. 45,000 (Rs. 1,500 multiplied by 30). Maximum gratuity payable under the Act is Rs. 3.50 lakhs (the ceiling was Rs. 1,00,000 which was increased to 2.50 lakhs on 24.9.97 by an ordinance which was later increased to Rs 3.50 lakhs while converting the ordinance into Act].

Maximum gratuity payable – Maximum gratuity payable is Rs 3.50 lakhs. [Section 4(3)]. [Of course, employer can pay more. Employee has also right to get more if obtainable under an award or contract with employer, as made clear in section 4(5)].

Income-Tax exemption - Gratuity received upto Rs. 3.50 lakhs is exempt from Income Tax. Gratuity paid above that limit is taxable. [section 10(10) of Income Tax Act]. - - However, employee can claim relief u/s 89 in respect of the excess amount.

No Compulsory insurance of gratuity liability – Section 4A provides that every employer must obtain insurance of his gratuity liability with LIC or any other insurer. However, Government companies need not obtain such insurance. If an employee is already member of gratuity fund established by an employer, he has option to continue that arrangement. If an employer employing more than 500 persons establishes an approved gratuity fund, he need not obtain insurance for gratuity liability. - - However, this section has not yet been brought into force. Hence, presently, such compulsory insurance is not necessary.

Gratuity cannot be attached - Gratuity payable cannot be attached in execution of any decree or order of any civil, revenue or criminal court, as per section 13 of the Act

Regards
Arun K Mishra
21st December 2009 From India, Bahadurgarh
Hi
Applicability fo Gratuity Act depends on
1) Applicability of the act with respect to nature of organization you are working in. (Private / Gov.)
2) You had mentioned that you are with the company since five years, although your service should be Contineous Service (uninterupted services includes lay off / leaves / leave with wages)
Regars
Sweta
21st December 2009
Dear Friend,
Its your right to ask the Gratuity.you can now claim for Gratuity bacause you were in the Company for 5 years.Its starts from your date of joining so dont bother about Probation preiod.This will not place any role in the Gratuity calculation.
Reds
David.P
MBA-HR
21st December 2009 From India
ofcourse, As you completed 5 years, you are eligible for gratuity. your probation period included in your total job period.
21st December 2009 From India, Vadodara
I have a doubt.. like in appointment letters of our company we mention that payment applicable as per gratuity act subject to retirement or death of employee...
ques 1: does that mean only in these 2 cases employer shall pay gratuity
ques 2: We dont have any gratuity fund or so like its said above so in these circumstances too, does the employer need to pay?
Regards
Neha
21st December 2009 From India, Chandigarh
dear you are eligible for gratutity. calculation start from the biginning i.e. your joining date to final settlement date. regards/tm
21st December 2009 From India, Ahmadabad
Dear NP,
According to shops & Estabishment act 240 days employee want to work.i.e so u have to complete(240*5).if u have worked for those many days means u r applicable to get Gratuity as per company norms.
Regards
Malini

21st December 2009 From India, Hyderabad
Pls refer to Section 4 of the Payment of Gratuity Act, If you fulfill this criteria then you are eligible for Gratuity.

Payment of gratuity.

4. (1) Gratuity shall be payable to an employee on the termination of his employment after he has

rendered continuous service for not less than five years, —

(a) on his superannuation, or

(b) on his retirement or resignation, or

(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:

12[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 suchnominees 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.

(2) For every completed year of service or part thereof in excess of six months, the employer shall

pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last

drawn by the employee concerned :

Provided that in the case of a piece-rated employee, daily wages shall be computed on the

average of the total wages received by him for a period of three months immediately preceding the

termination of his employment, and, for this purpose, the wages paid for any overtime work shall

not be taken into account:

Provided further that in the case of 13[an employee who is employed in a seasonal establishment

and who is not so employed throughout the year], the employer shall pay the gratuity at the rate

of seven days’ wages for each season.

14[Explanation: In the case of a monthly rated employee, the fifteen days’ wages shall be

calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying

the quotient by fifteen].

(3) The amount of gratuity payable to an employee shall not exceed 15[15a[three lakhs and fifty thousand] rupees].

(4) For the purpose of computing the gratuity payable to an employee who is employed, after his

disablement, on reduced wages, his wages for the period preceding his disablement shall be taken

to be the wages received by him during that period, and his wages for the period subsequent to

his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity

under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section (1), —

(a) the gratuity of an employee, whose services have been terminated for any act, wilful

omission or negligence causing any damage or loss to, or destruction of, property belonging

to the employer, shall be forfeited to the extent of the damage or loss so caused.

(b) the gratuity payable to an employee 16[may be wholly or partially forfeited]—

(i) if the services of such employee have been terminated for his riotous or disorderly

conduct or any other act of violence on his part, or

(ii) if the services of such employee have been terminated for any act which constitutes an

offence involving moral turpitude, provided that such offence is committed by him in the

course of his employment.
22nd December 2009 From India, Jamshedpur
Hi np
Your eligible for grautity as you have completed 5 years of continuous service in the organisation which included your probation period.
15days average wages will be paid for every completed year of service till u work in the organisation.
Prasadyadav
22nd December 2009 From India, Vijayawada
you will be eligible for the gratuitythe total amount eill be last drawn salary into15 divided by26 into number of years you serviced .If your mangement fail to settle the gratuity you can file assistant commissioner of labour (ACL)
22nd December 2009 From India, Selam
The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees. Regards, Amit Seth.
22nd December 2009 From India, Ahmadabad
Gratuity is "payable" once you complete continuous employment of five years ? What does it mean? Can the employee make a claim of gratuity once he completes five years of employment ?
As per Section 4 of Payment of Gratuity Act 1972, "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years on (1) superannuation, (ii) on his retirement or resignation (iii) on his death or disablement due to accident or disease".
Learned Member, pl use the right terminology while quoting legal terms.

22nd December 2009 From India, Madras
In the previous post, you have mentioned that " gratuity is payable once you complete continuous employment of 5 years .....". Pl read the following lines posted by you.
Re: About Gratuity
Gratuity is payable once you complete continuous employment of 5 years in a Co. The period of 5 years includes probationary period also.
Incidently when one gets confirmed after successful completio of probationary period, oit implies confirmation from the date of joining.
Best Wishes,
Vasant Nair

23rd December 2009 From India, Madras
I was working with Central Government (CG) as a Technical Assistant, after completion of my degree I applied for the post in PSU through proper channel (with NOC) and I was selected. So I resigned CG job and joined PSU. At the time leaving CG, I was told by Admn Officer, PF will be transferred to the PSU and all terminal benefits like service gratuity, retirement gratuity, EL will be paid to the employee directly.

After joining the PSU, I wrote a letter to the CG through PSU which are transferrable and which are not transferrable. But PSU had agreed for the transfer of all benefits like PF, gratuity, EL. But gratuity, EL should not be transferred as per rules of central government.

Finally CG transferred PF and EL to the PSU. After nine months of service in PSU I resigned. I was in PSU when PF and EL were transferred, but service gratuity, retirement gratuity are pending. I made many requests to the CG for settlement of gratuity. After two and half years they opened my file and sent a letter to me stating that I would have got gratuity if I had been in service with PSU. But I was in service when PF and EL were transferred.

They paid EL based on 5th pay commission. Shall I get arrears for that as per 6th pay commission?

Am I eligible for service as well as retirement gratuity (as per swamy’s book)?

Can you please clarify whether I will get gratuity and its interest for the three years and can you explain me rules and regulations?
10th February 2010 From India, Tiruchchirappalli
allmost all the employers are interpreted the meaning of the probtion where they extented the period for confirmation .As per industrialdispute act 1947 all employees are comes underthe perview of the workemen even trainees,dailywages,etc so for the purpose of graudity calculation date of joing is correct
17th February 2010 From India, Selam
For GOD’s sake please do NOT make such childish comments. Where did you get the "TWO YEAR" eligibility criterion.? Read Act and get the right answer. Vasant Nair
18th February 2010 From India, Mumbai
Dear Neha,

Please understand that entitlement for Gratuity is governed by the provisions of Payment of Gratuity Act,1972.

Whether your Appointment Letter contains "Payment of Gratuity" clause or not is immaterial. You are entitled to receive Gratuity once you complete the eligibility criteria stated in the Act.

Gratuity is payable to an employee when he leaves the organization for whatever reasons, after completing 5 years of continuous employment. It is not essential that the employee has to work until retirement or has to wait to die to be entitled to payment of Gratuity.

The 5 year eligibility clause does not apply in cases of death. Upon death Gratuity is payable even if the employee has NOT completed 5 years of continuous employment in the Co. An employee is eligible even if he has worked only for six months.

Provisions of law will always supercede any stipulations contained in any Office Order, Rule or Appointment letter etc...issued by the Company.

Trust it is clear to you now.

If there are still any doubts which continue to bother you, you are most welcome to contact me on my Mobile: 9717726667 or on my ID:

Best Wishes
Vasant Nair


18th February 2010 From India, Mumbai
we serving since 8 years for the company we do not have any offer letter or appointment letter. first while we joining it is a partnership company 3 years back it converted into private limited company now we legible for gratuity. give me the reply very urgent
5th March 2010 From India, Hyderabad
Hello,

This is on behalf of my mother who has been teaching in an Un-aided educational institution in Bangalore since 25th May 2005 and is resigning on 9th April 2011. The school states that the 1st year is termed as probationary period and is refusing to pay the gratuity amount. The school states that the gratuity period of 5 years begins only after the probationary period (25 May 2006) and is using this statement to refuse the payment of gratuity as my mother is leaving the institution on 9th April 2011.

What can be done in such a case?

Thank you.

Statement in Offer letter

i.) Probationary Period: All the employees, except temporary employees appointed for a specific period will be on probation for a period of 9months in the first instance. The period of probation may be extended by the managing committee/board of governors but ordinarily for a period of 3 months. During this probationary period, this agreement is terminal by either party by giving 1 month notice or one month salary in lieu of notice provided. That such notice period terminates at the end of the term.
25th March 2011 From India, Bangalore
Dear Uzair,
The definition of an employee as per the Act is "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
Which shows and states that the company is bound to pay the Gratuity for all the services rendered.

Regards,
Amit Seth.
23rd April 2011 From India, Ahmadabad
Dear Sirs
Under the Payment of Gratuity Act a worker is entitled to get gratuity if he had put in at least five years of continuous service with his employer. How to calculate one year of continuous service is provided for in the Act itself. Gratuity becomes payable when the worker retires on attaining the age of superannuation, or resigns or dies while in service. In the case of death of the worker while in service, the qualifying service of five continuous service is not a must. The rate of gratuity is 15 days basic plus dearness allowance for every completed year of service. For arriving at the one day wages of the worker, the monthly wages has to be divided by 26 and not 30. If the employer offers gratuity at a higher rate than what is provided for under the P.G.Act then that rate will prevail.
27th April 2011 From India, Madras
Dear Mr.Srinivas
Even if there be no offer letter the Payment of Gratuity Act will apply provided the Act applies to your establishment. Please furnish details of you estaablishment like number of employees, nature of work done and details of any labour law under which your employer had registered with the Govt.
27th April 2011 From India, Madras
Merely completing 240 days is not enough to qualify for payment of Gratuity. Please read the Act carefully and you will find the answer. Vasant Nair
28th April 2011 From India, Mumbai
Dear Member,
Welcome to CiteHR.
Abstract of the Act & Rules is provided by the applicable Payment of Gratuity Rules & therefore first see which of the State/Central PG Rules are applicable in your case & then go through form 'U' or whichever form find place in those Rules. You can also have it from your local shopkeeper who is having registers under Factories Act & other labour laws.
R.N.KHLOA|Sr.ASSOCIATE|LL&IR|
SKYLARK ASSOCIATES| GURGAON|HARYANA|
|Mobile: 9810405361|

27th August 2011 From India, Delhi
Dear Members,
As an employer can I start paying gratuity along with salary even if the employee has not completed 5 years
30th November 2017 From India, Hyderabad
Dear brother/sisters,
I have one doubts, what is eligible for gratuity years and act what is say?
6th June 2018 From India, Chennai
Dears,
Can answer the following questions,
1) if, I'm completed 5 years the same company i agree that gratuity is applicable but i will apply that working period(continuous service) is possible or after resignation or retirement only possible?
2) and I'm worked different different company (1+2+1+1=5 years) finally present company have completed 5th years that time gratuity is applicable or not?
This is not jokes someone asked this type of questions can clarify to me.
Reg.
Seven
6th May 2019 From India, Chennai
Hi Seven,
Answer for question 1
Gratuity will be paid on separation from the employment either in the form of resignation or retirement after 5 or more years of service.
Answer for question 2
Yes Gratuity applicable for 5 years continued services with last employer.
6th May 2019 From India, Madras

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