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I have completed 4 yrs 11 months and 5 days in my previous job. in all likelihood, i have completed 240 days in my 5th year. am I eligible for gratuity? I contacted my ex-employer and the finance team said they are evaluating the case. please advise. Any pointers to law books or legal docs supporting my case is greatly appreciated
Thank you,
From India, Bangalore
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Hi, Any employee who has completed 4 yrs and 8 months or (4 yrs and 240 days in the 5th year.) of service is eligable for gratuity as per gratuity act ( The Payment of Gratuity Act, 1972)
From India, Chennai
An employee is Eligible for Gratuity only if he’s having 240 days continous service in each completed year for 5 years.
From India, Hyderabad
as per gratuity act any employee who have not completed there 5 years of continous service they will not eligible for grtuity. even though they have completed the 4 years 11 months. so anu u will not be eligible for gratuity.
From India, Angul
Mr. coolheadtamil is correct, you are reqired to complete 240 days in an year, so for fifth year if you have already completed ur 240 days(though in 11 months) you will be eligible for gratuity.
Manager - HR
From India, Pune
hello anuaro plz find the attacment for ur clerification. Regards, Rohan bhatt.
From India, Surat

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I do agree with rath ratikanta,as per gratuity act any employee who have not completed there 5 years of continous service they will not eligible for grtuity.
From India, Ahmadabad
Hi ,
It is clarified here that as per gratuity act any employee who has not completed his continuous 5 years service in an establishment ,he will not eligible for getting the gratuity amount, even though he has completed the 4 years 11 months service. The 240 days clause is mentioned in the Act for the purpose of calculation of Gratuity, i.e. if the person is entitled for gratuity and in the sixth year he has completed 240 days continuous service then he will be entitled for whole year Gratuity in the sixth year. For the entitlement of the gratuity amount , one has to complete 5 years service in an establishment. So you are not eligible for getting the gratuity amount.
From India, Delhi
Dear Friends,

Madras HC judgment has been taken by HR people as last word on the point of gratuity payment before completion of five years of continuous service.

It has been interpreted as if it has legal binding all over country.For the benefit of all , I think it proper to clarify the position.

Madras HC judgment has legal binding in Tamil Nadu state only. In other states it has only persuasive value and not legal binding.

There has not been any decision from SC on this point. Till any such judgment comes from highest court of the land, provision of the Gratuity Act will always prevail which specifies the condition of eligibility for gratuity which is only after completion of continuous service of five years.

240 days in each year has to taken in to account only for the purpose of calculation of gratuity.

Relaxation from five years of service is only in the case of death or disablement.


anil kaushik

Chief Editor-Business Manager-HR magazine

B-138,Ambedkar Nagar, Alwar-301001 (Raj.) India

From India, Delhi
for the payment of gratuity one should compelte minium 5 year service as per Payment of gratuity Act. Regards Arjun Singh
From India, Mumbai
i disagree with Mr.Gupta.
as per the amendent act whoever completed 4 years and 240 days are eligibel for gratuity. i think same subject was discussed around 6 months bach and we all had carified this. am herewith encllosing the amendment act too for your reference.
From India, Raipur

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File Type: pdf Madras High Court _ Gratuity Judgement[1].pdf (1.55 MB, 169 views)

Dear Anurao,
As per Sec. 2A of the Act, if you have attended for 240 days for the purpose of "continuous service", you are perfectly eligible for gratuity. You can claim gratuity from your employer.
From India, Hyderabad
dear all
regarding gratuity when u r going to pay gratuity pl consider the two things first
a) Eligibility
b) Calculation
As far as elgibility first 5 yrs uhave to completly complete. In the act never say to nearest round up for the first 5yrs.
As far as calculation act say to round up the nearest
conclution - anu is not eligible for gratuity.
From India, Mumbai
There was some mis understandings due to one verdict from Supreme court and another one from Madras High Court that if there is an attendance of 240 days in the last year, it will be considered as a full year.
When I went for a detailed study, to my knowledge, after the above judgements the act is amended as under :
1. Minimum eligibility to get Gratuity is 5 years.
2. In the case of permanent employees, for the preceeding 12 months, there should be a minimum attendance of
a) 190 days
i) for those work in Mines
ii) for those work for less than 6 days in a week
b) 240 days in other cases.
i.e 240 days is minimum attendance in 12 months.
From India, Bangalore
the basic condition for the eligibility of gartuity is to complete 5 years.
the rule of 6 months or more will apply for the calculation of gartuity but not for eligibility
so you are not eligible for gratuity
From India, Bangalore
I am based in Bangalore. I havent heard from my ex-employer yet about my elegibility. I have collected a mixture opinions in this forum.:-)I am in a dilemma now.
I will confirm what happens when my ex employer updates me!
Thank you
From India, Bangalore
Dear V.K. Gupta & Anil Kaushik, Regarding calculation of Gratuity, fraction of more than 6 months will be rounded up to next full year. For this purpose 240 days is not required. Abbas.P.S
From India, Bangalore
Dear Anurao,

May I request you to please immediately file claim with your former employer for payment of gratuity for services rendered by you for 4 years 11 months and 11 days. The Payment of Gratuity Act, 1972 is very clear that one has to complete 5 year minimum service for becoming eligible for payment of gratuity. For those who could not complete this provision of 5 years, there are explanations / provisions that period over and above 6 months is to be rounded off to the next full year. The law has sanctity. So have the provisos and explanations too. For getting the benefits in actual, you have to actually file the claim for gratuity. Unless you file the claim for gratuity, the employer is not legally bound to give explanation or pay the gratuity. Once you lodge the claim, the administrative machinery will start functioning and either pay you gratuity or repudiate your claim.
If the claim is repudiated, the employer will give you explanation for his action. We can then discuss the matter in this forum. So please file the claim and intimate us the final result. Lodge claim for gratuity of full year service stating that period of 11 months and 10 days has been rounded off to next full year, total five year service. Ensure that you did not have 'leave without pay' during this period which is not considered as qualified service. Here is also one more explanation / proviso. Leave without pay on medical ground is considered qualified service. Most important factor - is - your gratuity claim filed with the employer in the prescribed form. In the absence of your claim, your eligibility is not sufficient for payment of gratuity. When you get the gratuity, please do remember to inform us on this forum. Thanks and regards,

Shyam Agrawal
From India, Pune
Hi Everyone,
In relation to this thread, kindly clarify the below doubts.
Is Gratuity amount to be considered under CTC ? and can we reflect the same in Salary Slip OR Detailed Salary Break-up annexture?
From India, Ahmadabad
Dear Mr.Pradeepan
There is no amendment to the act in this regards
It is only Madras high court judgment
It may applicable to only to TN State but not to other states
AS per act 5 years service is must.
Prasad SBR
From India, Pune
Hello Mr. Shyam Agrawal,
My company wants more time to decide on my eligibility.When I got back to them about an estimated time, they re not ready to commit on any time line. My PF was credited only last month (its 8 months since I quit).Now I am not sure if there is a timeline within which the company should pay or I should claim. Please advice as to where I need to claim the amount? My Employer or deputy comm of labour authority?
Any tips is greatly appreciated.
Thank you, Anu

From India, Bangalore

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File Type: doc Gratuity form I.doc (28.0 KB, 52 views)

Dear Anurao,

Gratuity is payable to you by your former employer. Therefore, please lodge claim with your former employer for payment of gratuity in the prescribed form which you can find in the printed book of Payment of Gratuity Act, 1972. You can also download it from the website. If you cannot lay hands on it, please revert to me. My personal email ID is <shyaam.agrawal@gmail.com> . You may make use of this ID and contact me. Time limit for payment of gratuity by the former employer is 30 days from the date of receipt of application from the former employee. Luckily, there is no time limit for the employee to file the application. Ordinarily, the employee is expected to file his claim for payment of gratuity within last one week of his/her service and get the payment on the date of his exit from the employer firm. However, the employer can delay the payment upto 30 days. After this period of 30 days, the employer is bound to pay interest to the former employee on the total amount of gratuity payable. If the interest is not paid simultaneously, the employee can demand it separately. Rate of interest is as decided by the Commissioner of Labour who has powers of appallate authority. The Commissiner of Labour comes in picture only after the employee fails to settle his claims amicably and files a complaint against his former employer and not otherwise. For lodging a complaint, an employee must have something in his hand e. g. proof that his rightful dues have been denied by the employer. To have this, he must first lodge a claim for his dues.

Thanks and regards,

Shyam Agrawal
From India, Pune
Dear Anurao
Thanks for giving us very good news. Hearty congratulations to you. When you finally get your gratuity, please
do remember to post the amount you have received and also repeat that it is for period 4 years 11 months and 10 days so that it could be case law / precedent useful to similar other people.
Warm regards.
From India, Pune
I joined the deemed/state univerisity in Gujarat as a lecturer on 03/07/2006 and last working day was 30/06/2011.
Due to some reasons i joined the G.O.G in 02/05/2011(only one day). My name was registered in the muster at GOG and have two post at the same time, but with WLP at GOG. I havenot gone to GOG and contineu to service my previous university till 30/06/2011.
Can i get the benifit of gratuity as i completed 4 years and 240 days?
From India, Ahmadabad
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