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Thread Started by #vishalsri09

Hi,
I am working in IT industry and I work 5 days a week.
My date of joining organisation : 09.04.2007
My Last working day in organisation : 05.03.2012
Since I am not completing 5 years, my company is not willing to pay gratuity amount due to me. As I have gone through different websites,I found a person who has worked 4 years 240 days becomes eligible for gratuity payment, though I didn't find any supporting clause or section. If this is true then I believe I am eligible for gratuity payment.
Can I request your expertise here as I have no knowledge on subject? Am I eligible or not? If yes, can you provide some suporting doc which I can forward to my company so as they pay my gratuity amount.
Many thanks in adavnce.
Regards,
Vishal Srivastava
9810249951
27th January 2012 From United Kingdom
Dear Vishal
You have no doubt completed 4 years by 8th April 2011. Since you have resigned on 5-3-2012, you should have also worked for 240 days during the twelve month period from 4-3-2011 to 5-3-2012 to be eligible for gratuity. However any leave with wages availed by you during the said period of 12 months will be included in calculating 240 days.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
27th January 2012 From India, Mumbai
Thanks Sai for your response.
I don't think I have availed leave in excess of 15 days which includes my casual, sick and Annual leave.
If you take that as well for accounting then even though it comes more than 240 days which makes me feel i am eligible. What do you think?
Can you please share some documental proof which states that a person who has served 4 years and 240 days in any organisation is also eligible for gratuity payment?
Is this required as I need to show my company that I am eligible?
Thanks again for your kind help.
Regards,
Vishal Srivastava
09810249951
27th January 2012 From United Kingdom
Hi,
Pl refer the book "BARE ACT Gratuity Act" for documentary proof. This book is legally valid.
Any person, who has completed 4.5 & more years, are eligible for gratuity.
Also, you may get court orders in google as well.
Thanks,
28th January 2012 From India, Indore
Hi Vishal
I can provide citation of a case in support of what I have said. You can show it to Ur company after procuring a copy of the judgment.
Mettur Beardsell Ltd, Madras V. Regional Labour Commissioner (Central) 1998 III LLN 414 ; 1998 LLR 1072 (Mad HC). You can also browse the chipinbiz company's website for e-books in which similar issues were dealt with.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
28th January 2012 From India, Mumbai
Hi Vishal,
I support the statements of Mr Sai Kumar.Since you have worked for Four years and excess of five months, you are eligible for Gratutiy.We had incorporated this clause in the Gratutity Policy ammendmet of our company recently.
Regards,
Sumit
28th January 2012 From India, Mumbai
Dear Vishal,
Pl.go thro' the highlighted attached portions of the Gratuity Act (bare act) which are relevant to your case and you'll know how you are placed. Don't delay, put them on the defensive, apply for your claim in the prescribed form under proper ack. immediately and wait for exactly one month and then follow up on the lines of what the act says. Don't worry, don't delay.
There are umpteen no.of case laws similar to your's.
All the best.
kumar.s.
28th January 2012 From India, Bangalore

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File Type: doc Payment of gratuity act.doc (77.5 KB, 1744 views)

Dear Sir,
For entitlement of Gratuity, one should complete 5 years of service. It is a must as per the
Gratuity Act.
But in one case, the Madras High Court gave a verdict stating that Completion of 4years, in 5th year if anybody put in 240 days of work, it should be treated as completion of 5 years of service and such person is eligible to gratuity.
Gratuity Act is central Govt.ACT. The Central Govt. have to amend it for applicability in all States.
Therefore, at present this completions of 4- years and 240 days in 5th year for gratuity payment is applicable in Madras State only. In other states, one should complete 5 years service.
In case, any management wants to pay gratuity as per Madras High Court's decision, It will be welcome aspect in the interest of welfare of employees. Nothing prevents.
D.Gurumurthy
LL.HR & IR Consultant
28th January 2012 From India, Hyderabad
Dear sir, Agar kisi ne khabhi bhi apne esi card ka istmal nahi kiya hai to kya use jo esi ke liye rupee kate hai wo wapes mil sakte hai ya nahi. Ager mile sakte hai to kasie. thanks
28th January 2012 From India, Delhi
Hi,
I have worked for a reputed indian company for 4years & 9 months in a capacity of Senior Manager out of my total 22 Years of career with some of Good Companies. I needs the help/suggestations on below points.
1. If past employer is not willing to pay the Gratuity inspite of all provisions there, to whom should be approached since have worked for 4.9Years and eligible as per Gratuity Act.
2. Can any employer reduce the Fix Compansation(Fix Emmoluments) less than offered prior to joining without any reason to any individual Employee in between of Employment ( say atleast after working+2years), since the employer had Offered better prospects prior to joining his organiosation.
If Not than whom to ber approcahed for Justice...?.
Thanks,
Suresh
29th January 2012 From India, Delhi
Dear Vishal, I agree with Mr. Gurumurthy. Please don’t waste your time. Gratuity is applicable after 5 completed years only.
29th January 2012 From India, Bhubaneswar
Mr. Suresh Gratuity is payable only after completion of 5 years of continuous service. Please don’t get confused. ypu are not entitled after 4 years and 9 months .
29th January 2012 From India, Bhubaneswar
Dear Rajeev Read above statment to understant how it becom. Formula =current basic/26*15*service period
29th January 2012 From India, Bangalore
Dear Rajeev Read above statment to understand how it becom. Formula =current basic/26*15*service period
29th January 2012 From India, Bangalore
Hi, Is this 240 days inclusive or exclusive of weekend or holidays falling in between Regards Anu
30th January 2012 From India, New Delhi
Hi Although I am ready to stand corrected, but I think ELIGIBILITY would trigger only upon COMPLETION OF 5 YRS (and, not the 4 yrs and 240 days). Rgds
30th January 2012 From India
Dear All,
Pl.go thro' the link where similar query was already discussed. You'll find the SC judgememt attached thereto.
For your ready ref. the same is attached. If anybody doesn't wish to believe it's yr.choice.
Regards,
kumar.s.
https://www.citehr.com/104526-sc-rul...tuity-act.html
30th January 2012 From India, Bangalore

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File Type: doc 240 days Gratuity Act-Case Law.doc (69.5 KB, 286 views)

Dear,
You were paid wages for the days of service (incl. weekly off, holidays etc.) excepting break in service, if any. So for the purpose of ''Continuous Service" it is your "service" rendered is counted.
Rgds,
kumar.s.
30th January 2012 From India, Bangalore
Dear Friends,
I would like to know the difference between "Gratuity" and "Service Compensation". How the Service Compensation as per Shops & Establishments Act will be caluculated and what is the eligibility? I will be very grateful if learned friends can throw some light on this as I am very much confused on this subject.
Thanks & Regards,
Pradeep
18th February 2012 From India, Hyderabad
Pl.see the relevant extract from the Gr.Act. kumar.s.
18th February 2012 From India, Bangalore

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File Type: doc The Payment of Gratuity Act.doc (25.5 KB, 218 views)
File Type: doc THE PaymentofgratuityAct. BARE ACT.doc (78.0 KB, 168 views)

Dear Pradeep,
As you are seems to be located in AP, the AP Shops & Establishments Act, 1988 would be applicable. The term Service Compensation is referred in this Act as applicable in the case of "termination", this is referred to as "Service Compensation". Whereas the Gratuity is payable under the Gratuity Act
Both are diff. Why you should get confused, what is the matter ?
See the attachment for more clarity.
Regards,
kumar.s.
18th February 2012 From India, Bangalore

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File Type: pdf Andrapradesh Shops and establishment Act[1].pdf (499.5 KB, 157 views)
File Type: doc AP.shops...Act extract of Service Compensation.doc (177.0 KB, 111 views)

Dear Mr.Kumar,
Thanks a lot for your reply.
The Service Compensation is payable even in case of resignation (not only in case of termination) also as far as my knowledge is concerned subject to completion of 1 yr service in an establishment wherever there is no Gratuity as per the A.P. Shops & Establishments Act 1988. Is it correct or not?
Actually one of my friends has worked in a Company (in A.P.) which was registered under A.P. Shops & Establishments Act in Senior Management position for 1 yr 11 months and he has resigned. Is he eligible for Service Compensation or not? Kindly clarify.
Thanks once again.
Best Regards,
Pradeep

20th February 2012 From India, Hyderabad
In my view this sec.47 specifically 47 (5) should be gone thro' together with the Gratuity Act,
Under the Gratuity Act the eligibility is for a continuous service of 5 yrs. depending on these conditions one has to study the individual's case. A plain reading says he would be eligible since he won't be paid under Gratuity Act. However you may search for some settled case laws which would throw more light on this issue. Right now I don't have the relevant case laws. You may consult an advocate in AP.
Regards,
kumar.s.
20th February 2012 From India, Bangalore
Dear Jaydeep, Pl.go thro' the attachment. kumar.s.
27th March 2012 From India, Bangalore

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File Type: doc Payment of Wages Act.doc (34.5 KB, 523 views)

Dear Sir: My son in law joined a multi-national software company on the 9th May, 2007 and resigned his job w.e.f. 10th February, 2012. (The resignation was at the instance of the management, I understand). Unfortunately he died on the 3rd March, 2012. Kindly inform whether his nominee can claim Gratuity, since he has not completed five years of service at the time of resigning the job. If there are any relevant decisions and judgement, kindly inform me at your earliest. Kindly reply to my e-mail ID <rkrajagopalan@yahoo.co.in> Thanks and regards.
R.K.RAJAGOPALAN, No. 9, 7th 'B' Main, Muthiyal Nagar, Bangalore - 560054. Mob: 09986700475
24th May 2012 From India, Bangalore
For gratuity calculation purpose, what parts of salary is considered, is it just BASIC or any other allowance like Dearness Allowance. Private sectors call the allowances differently like Specialization Allowance apart from Basic as part of the salary. Act says 'WAGES'. Is this specialization allowance part of 'WAGES' definition?
5th July 2012 From India, Bangalore
For gratuity calculation purpose, what parts of salary is considered, is it just BASIC or any other allowance like Dearness Allowance. Private sectors call the allowances differently like Specialization Allowance apart from Basic as part of the salary. Act says 'WAGES'. Is this specialization allowance part of 'WAGES' definition?
-Janardhan.
5th July 2012 From India, Bangalore
If the gratuity is part of CTC, then is it mendatory to pay in F&F even if the period is less then 5 years. Regards Tejas K
11th July 2012 From India, Bangalore
#Anonymous
Hi suresh
As per my knowledge & exp.
1. Asst.commissioner of Labour of your Establishment ( Organisation) area is the proper authority under Payment of /gratuity Act. you can initially make a simple application to him regarding your case. On receipt of your application the Authority will call your previous company & will try for amicable settlement. If no settlement arrived at, then you can through your lawer file a case for payment of gratuity under reference. .
2. As regards reduction of remuneration- since you are working at sr level ,at the time of joining you must have obtained the appointment order/documents related to remuneration. On the basis of these documents ( higher pay) you can claim in a court the case-Violetion of contract. This is what is possible.But not advisable, since you are working at sr.level & making litigation with employer may cause problem to your frame. This is what I feel.SDP
8th January 2013 From India, Kolhapur
I am working hospital staffnurse one of the hospital since six years and six months .now i m resigned last sept 15th .tillnot yet my graduty get it. What i will do how many months i m wait gratuty money.please help me.
23rd January 2013 From India, Mumbai
Dear Sir,
Am I eligible for gratuity?
I Have joined a pvt. ltd. co. on 22.03.2007 and i have continue worked till 31.05.2012
From March-07 to Feb-08 - Total days worked = 242 days
From March-08 to Feb-09 - Total days worked = 270 days
From March-09 to Feb-10 - Total days worked = 234 days
From March-10 to Feb-11 - Total days worked = 268 days
From March-11 to Feb-12 - Total days worked = 225 days
From March-12 to May-12 - Total days worked = 58 days
There are no period break during the service.
Our co. told that 3rd and 5th year is less than 240 days, so that gratuity is not applicable for me?
Please advice.
Thanks & Regards,
Aazad
30th May 2013 From India, Vijayawada
Hi Dear Friends
I would like to inform to those who are getting confused on the issue of payment of Service Compensation under AP Shops Act.
That Hon'ble High Court of AP has already struck down the payment of Service Compensation under AP Shops Act since the same is inconsistent with the provisions of Gratuity, which is unconstitutional. Later on, the same was challenged before the Supreme Court, which has upheld the decision of High Court of AP. in Civil Appeal No. 6499/2002.
Hence, there is no need to pay any amount as a Service Compensation under AP Shops Act.
I am also attaching Supreme Court Judgment for ready reference.
28th May 2014 From India, Hyderabad
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