Hi, How many years continuation in service for eligibility of gratuity? 5 years or 4 years 240 days....
11th April 2011 From India, Mumbai
hello kartik, As per the amended act,the years should be not less than 5 year of continuation in service................ regards, suchita.
11th April 2011 From India, Pune
Hi Suchita,
yes you're right.... But for tamil nadu, employees have to be complete only 4 years & 240 days for eligiblity.... Please refer the attachment....
waiting for your comments....
cheerz,
S R Karthik
12th April 2011 From India, Mumbai

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hi friend . i need one help , pl tell me how can i post my requirements here . mohamedreh at yahoo dot com
12th April 2011 From India, Madras
Dear Mr.karthick
The eligibility criterion for getting gratuity under the Payment of Gratuity Act is five years continuous service. and not four years. How to calculate the one year of continuous service was decided by the Honourable Madras High Court in the judgment referred to by you. A worker is deemed to have completed one year of continuous service if he had worked for 240 days in that particular year. The law on this issue is the same throughout India and is not specific to any particular State.
V.Harikrishnan
12th April 2011 From India, Madras
Hellow,
I am working for a software Company and I am wondering whether I am eligible for the Gratuity.
Here are my details:
I worked from April 2005 to June 2007 in India and moved to onsite(U.S.A) through the same company and also still (till date)working with the same company.
Please help me on this.
Thanks,
Bhanu.
13th April 2011 From United States, Hamden
Dear breddy4197
I need the following information to respond to your queries.
1.What is the nature of work done by you in the company
2.What are the terms and conditions under which you were sent to onsite.
3.During your onsite posting who is your employer
V.HARIKRISHNAN
Joint Commissioner of Labour(Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
14th April 2011 From India, Madras
1.The nature of the Job is software. 2.I have been moved to onsite on deputation. 3.My employer in India and at onsite are the same i.e Cognizant. Thanks, Reddy.
14th April 2011 From United States, Hamden
Respected experts,
i have worked 12 years with a JV company which is only importing and selling machines from its parent European JV partner. In India the co. was run by single promoter who now has planned to sell off his JV share to parent company after showing them a highly optimistic forecast, when the new employer takes over obviously they will have high expectation from a small workforce of us who have worked very hard all these years under the promise of better prospects with scarce resources & training and we are not optimistic now due to the changing product's market trends (since this negotiations have been going on for last 3years which has drained our patience & energy.
Can we claim our gratuity/any other benefits from present promoter or are we in compulsion to work under the new owner once the transitions suddenly takes place? do we not have any choice ? ideally we would like the our association of 12 years with present company to be rewarded first (with gratuity etc.) before entering (or not) into a new work agreement with new management. Hope you understand our dilemma and will support with useful information.
14th April 2011 From India, Delhi
Respected experts,

i have worked 12 years with a JV company which is only importing and selling machines from its parent European JV partner. In India the co. was run by single promoter who now has planned to sell off his JV share to parent company after showing them a highly optimistic forecast, when the new employer takes over obviously they will have high expectation from a small workforce of us who have worked very hard all these years under the promise of better prospects with scarce resources & training and we are not optimistic now due to the changing product's market trends (since this negotiations have been going on for last 3years which has drained our patience & energy.

Can we claim our gratuity/any other benefits from present promoter or are we in compulsion to work under the new owner once the transitions suddenly takes place? do we not have any choice ? ideally we would like the our association of 12 years with present company to be rewarded first (with gratuity etc.) before entering (or not) into a new work agreement with new management. Hope you understand our dilemma and will support with useful information.
14th April 2011 From India, Delhi
Dear Mr.Reddy
I forgot to ask you about the location of Cognisant wherein you worked while in India. However, in Tamilnadu software companies are covered by the provisions of The Tamilnadu Shops and Establishments Act. Therefore the Payment of Gratuity Act is applicable to them according to the provisions of Section 1(3)(b) of the Payment of Gratuity Act. Persond engaged for software development would come within the definition of "employee" as defined under Sectioon 2(e) of the Payment of Gratuity Act. Therefore employees of software companies are governed by the provisions of the Payment of Gratuity Act unless the terms of gratuity offered by the software company are better than those of the Payment of Gratuity Act, in which case the terms better than the Act will prevail . In your case assuming that you had worked in Tamilnadu, you are entitled to claim gratuity from your employer if you had worked with them for five continuous years. As in on site also Cognisant is your employer, the services rendered by on site has to be reckoned for computing your length of service with Cognisant. If the length of service rendered by you at the time you leave the company, is not five complete years that is 4 years and few months, then to decide whether the balance of the months after four years would be reckoned as a year of service, the number of days you worked in the balance of months have to be at least 240 days. In case you have worked in a different State in India please write back. I will try to clarify.
V.HARIKRISHNAN
Joint Commissioner of Labour (Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
15th April 2011 From India, Madras
Dear Ms Anuradha From the information furnished by you, I am of the view that you are eligible to get gratutity under the Payment of Gratutity Act.
18th May 2011 From India, Madras
Dear Mr Harikrishnan I would like to thank you for the timely response you provided. I have now received my gratuity payment from my earlier company. Appreciate your help! Thanks.
7th June 2011 From India, Madras
Dear Mr. V.HARIKRISHNAN
I have similar sitation worked for IT company for 5 yrs 7 months. 3yrs 1 month was in India and worked onsite as intera compny transferee(same company) in "Sales" and continued to be onsite but transfered back to project based in India and worked onsite for another 7-8 months...Please help. Further I have many PL in India which were carry forwarded and should be enchased now..
1.What is the nature of work done by you in the company
A. Sales in India and onsite as well. Later transfered to project for 7-8 months but location continued to be onsite.
2.What are the terms and conditions under which you were sent to onsite.
A. Deputation for 3 Years.
3.During your onsite posting who is your employer
A. Onsite subsidary of Employeer in India.
9th June 2011 From Japan, Kawasaki
Dear Mr.Sahni
Assuming that 10 or more persons were working in the establishment in which you were/are employedm and based on the information furnished by you, you have worked with the same employer. Therefore you are entitled to get gratuity under the Payment of Gratuity Act. The encashment of PL depends on the Act applicable to you, that is whether your establsihment is registered under the Factories Act or under the Shops and Establishments Act.
9th June 2011 From India, Madras
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