Gratuity Before 5 Years Of Completion - CiteHR
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it is clear from the provision of the Act itself (Section 4(1) read with Section 2A and 2(b) that a employee who has put in 240 days or more of service in the 5th year, subsequent to the first 4 years, should be deemed to have completed continuous service of 5 years and is entitled to get gratuity under the Payment of Gratuity Act. 1972.
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In case of death of the employee before completing 5 years of continuous service, nominees are eligible for payment of gratuity.
Our member friend Mr.Rajiv Singh is absolutely correct.
The Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year e.g.fifth year will be deemed to have continuous service for one yearas stipulated by Section 2A of the Payment of Gratuity Act.[ Mettur Beardsell Ltd., Madras Vs Regional Labour Commissioner(Central) Authority under the Payment of Gratuity Act, 1972]
Dear Manivel,
It is better to stay there for another 2 months to get eligibility as per the Payments of Gratuity Act. Bcoz the act clearly defines that one have to completes his 5 years tenure for getting eligibility. So, why to give chance for refusement? Do your best.
P. Paraman.
Hello Sir, I have worked in a company under shop and establishment act. I have worked for 4 years 7 month 20 days. Kindly advise am i eligible for gratuity. As per company norms they want me to complete 5 years and then only i will be eligible for gratuity.
Awaiting for your soonest reply.
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