Gratuity On Resignation On 4 Yr 8 Months Though Company Released After Next Two Month - CiteHR
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Would I get gratuity money if I have completed my continuous service in a company for last 4 years and 8 months and I resign now. I know that if I resign today then I would be released only after two months notice period and by that time it would be 5 years in complete.
Whether my resignation date would be considered for calculation of continuous 5 years term, or it would be calculated on the day when I would be released (i.e. relieving date) from company.
Do I have to fill any form or inform company about gratuity? If so when? Just after receiving the relieving letter when it gets completed 5 years or it can be submitted even before that?
Thanks a lot in advance.
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Dont worry dear, you are entitlled to get gratuity after completion of 4 year and 6+ months, not mandatory to complete 5 years Jitendra
Dear Jitu
Gratuity is paid after completion of 5 years only.
After completion of 5 years if the employee works for 6+ months he will be eligible for Gratuity of 6 yrs.
Recently, i came across a judgement that if a employee completes 4 yrs & atleast 240 days in the 5th year, he is eligible for gratuity of 5 yrs.
It is just to update you all.
Dear all,
Please help. I have joined my current organisation in Jan 15, 2007. I have a notice period of 90 days. Which date I will be eligible for gratuity? If I resign after Jan 15 or if I resign 3 months before that (will notice period time be counted)?
Dear member, serving in N.P. is as good as normal service. The last day of your working will be considered for Gratuity calculation. Pon
Dear friend,
Not the date of your putting in papers, the date of your relief would be counted for computation of your gratuity. Be sure about it. From the date of your joining to the last day of work would be your total qualifying service less days of unauthorised absence if any, which are not regularised by the competent authority as leave due and treated as leave without pay. However, leave without pay on medical ground duly supported with proper medical certificate is to be considered as qualifying service. Hope you do not have such problem and would get the gratuity admissible for full five year service. Good luck.
From the date of joining you have to be complete 4 yrs + 10 months 11 days service then only you are eligible for Gratuity. Please go through the below Supreme Court Judgement on this regard.

Clarity between gratuity eligibility service (5 or 4.8 yrs)

The gratuity eligibility service as per Gratuity Act 1972 - 5 years.

As per the judgment from Supreme Court - it seems that the gratuity eligibility service is 4 years 240 days.

"Judgment from Supreme Court:

"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."


Tirupathi Reddi
Very important discussion but I do not understand how 10 months and 11 days correspond to 240 days. Are these 240 calendar days or 240 working days.
Also since partial year is rounded so 0.5 is taken as 1 and then will 4.5 year not become 5 years.
Will be extremely grateful for a reply.
Court ruling or judgement is not incorporated in the payment of gratuity Act. Companies can stick to the provisions of Gratuity Act of 5 yrs service. Pon
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