Malikjs
Gm (hr)
Yagnaiah. K
Sr. Manager -hr
Patilas4422@yahoo.co.in
Manager - Hr & Administration
Amahankari
Accounts Work
+12 Others

HI
I have completed 4 years 8 months in a PSU company governed under Paymennt of Gratuity act 1972. Am i eligible for gratuity ?
I have gone through an article which says that Eligibility for payment of gratuity is 5 years. Quantum of Service will be consider full year if some one has completed 6 month or more than that.
Pl advice to me regarding my eligibility of payment of Gratuity.
23rd February 2012 From India, Mumbai
Though the Payment of Gratuity Act has not been amended but as per the latest Supreme Court ruling, you are eligible for gratuity.
23rd February 2012 From India, Pune
Hi, I have completed 4years and 7month (i.e 9th April 2007 to 25th october 2011) working in retail industry, mumbai, Is I’m applicable for gratuity? Please direct me. Thanks Meenakshi
23rd February 2012 From India, Thana
Dear All My Seniors
I want to know that what is the calculation for gratuity payment and only 5th year 240 working days would be consider for gratuity payment supose somebody did not complete minimum 240 days working critaria in their previous 4 year then he/she will be eligible for gratuity amount after completing his/her 5 year working.
Thanks and Regards
Raj Asiwal
Cont. No. 08445550248
24th February 2012 From India, Meerut
Hi sheeba ..
As per the Gratuity Act , eligiblity for gratuity is 4 years + 240 days in the 5th Year. Since you have completed 8 month in the fifth year means ( 8 month X 30 Avg.days per month = 240 days ) you are eligible to get the Gratuity.
Manohar
24th February 2012 From India, Mumbai
Dear Sir,
You have to complete full 5 years of service for gratuity purpose.
In case of Madras State, 4yrs-6 months above will be counted as 5 years of service because
the High Court gave verdict like that.
D.Gurumurthy
HR/IR Consultant
24th February 2012 From India, Hyderabad
Hi, Thoough you have completed 4 yrs and 8 months, it will be treated as 5 years continuous service and hence, you are eligible for Grauity Claim.
25th February 2012 From India, Pune
Dear Mr D.GURUMURTHY,
This is for kind information that not only Madras High court but also the Hon. Supreme Court has given a judgment confirming that if the employee has worked for 240 days in the 4th year, he is eligible for gratuity.
Though the Payment of Gratuity Act has not been amended but denying any employee gratuity if he has worked for 4 years and 240 days may create future litigations for the organization.
regards,
Kamal
25th February 2012 From India, Pune
Dear Seniors
I am little bit confuse about working days some senior says that 4th year 240 days is compulsary for gratuity and some says 5th year 240 days is compulsary so i want to know that what is correct information about this.
Thanks and Regards
Raj Asiwal
25th February 2012 From India, Meerut
Dear Seniors I am working with school running under trust. I want to know that gratuity scheme applicable on school/trust or not. Please suggest.
25th February 2012 From India, Gurgaon
Continew service in all five years is make apllicable for gratuity . past five years service should not be break up as per standing rule. Thanks Sanjeev Rai
25th February 2012 From India, Indore
For claim of gratuity, 5 years should be completed otherwise you are not entitled for gratuity rajvir singh beniwal hrd manager Wings Biotech
25th February 2012 From India, Delhi
Dear All
5 years service is must to get gratuity.in one case madras high court has given judgement that if inidivisual
completes 240 day in fifth year than he becomes eligibleto get gratuity.
on the basis of one judgement we can not over rule payment of gratuity act where clearly mentioned in applicablity clause 5
years.there should amendment in act to make it 4years 240 days applicablity.
we are just confusing each other with out valid reason.
Can anyone tell where written in act appicablity after 4 years& 240 days in fifth year .we are just confusing with one judgement of high court.
25th February 2012 From India, Delhi
Dear Mr J S Malik,

Its not only Madars High Court but Hon. Supreme Court has also ruled that if an employee has completed 240 days in the 5th year of his service then he is eligible for gratuity.

"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."

Its true that the Payment of Gratuty Act has not been amended to accomodate the judgemnet of the Hon. Supreme Court but at the same time jugdements passed by Hon'ble Supreme Court of India became law as per Article 141 of Constitution of India.

We should also not forget that when the Payment of Gratuity Act was amended in 2009 to redefine/widen the term "EMPLOYEE", the amendment bill (introduced in Parliament) gave a clear reference to the Supreme Court judgement of 2004 in which the court had widen the definition of the term 'employee'. The act was amended just to accomodate the court ruling.

Not only that though the act was amended and notified in the Gazette of India in 2009, it was effective from 3rd April 1997 just because the case "Ahmedabad Private Primary Teachers' Association vs. Administrative Officer and others" in which the Supreme court gave said judgment was started in 1997.

So we just can't say that members are discussing the topic without any valid reason. Till the act is amended and notified people will keep discussing the topic as the present status of the act on eligibility criteria is confusing. People are taking it both ways.

regards,

Kamal
25th February 2012 From India, Pune
dear friends
as per Sec. 2A (2)(a)(ii) of The Payment Gratuity Act, an employee, who worked for 240 days in an year is eligible for gratuity.
High Court of Madras decision (1998 LLR 1072 MADRAS) in this regard is attached
25th February 2012 From India, Hyderabad

Attached Files
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File Type: pdf Madras High Court _ Gratuity Judgement[1].pdf (1.55 MB, 171 views)

Dear Mr Kamal
i agree with your all interpretations and judgement but till the time there is no amendment in act ,applicabliy remains 5 years .even LIC which ishaving major share for gratuity policy,does not pay if it is less than five years.
As case of interpretation of continious servce after 240 days ,absolutely agree for the same.As of now it is not mentioned in act no one pay before completing 5 years.

25th February 2012 From India, Delhi
Dear Shri Ahankari Ji,
The Payment of Gratuity Act, 1972 has been amended in the year 2010 to include teachers in the definition of employee. Now all teachers are eligible for payment of gratuity. Thanks & regards,
26th February 2012 From India, Pune
I need help in the matter that Gratuity is secured right or not, this is required for the purpose of claim settlement in respect of Liquidation /winding up company. If any judgement, pls refer.
Deepak,
9826279399
27th February 2012 From India, Mumbai
Dear Mr. Kamal P Sinha
Can we have the scanned copy of Hon. Supreme Court Judgment confirming that if the employee has worked for 240 days in the 4th year, he is eligible for gratuity.
Thanks & an early response will appreciated.
Ganesh
28th February 2012 From India, Mumbai
@ Ganesh...
I do not have the original scanned copy of SC judgement. If you want the same plz apply for a certified copy giving case no. details from the copying branch of the SC.
or plz go through the law book "The Payment of Gratuity Act,1972" published by Law Publishers () Pvt.Ltd. 18A-S.P.Marg,Post Box-1077,Allahabad-211 001.
28th February 2012 From India, Pune
Hi,
I have completed 3 years in the same organisation however I was on Leave without pay for 2month as I was on maternity leave( 3month paid by organisation + 2months extra without pay) and my question is how my gratuity days will be calculated. Would it 5 years from the day the joined organisation or 5years+ 2months.
20th April 2012 From United States, Chicago
Hi
I have completed 4 years and 9 months in the company and have resigned from it, my company refuse to pay me my gradutity as they say that this 240 days are counted as working days only and no sunday or any leave taken into count.
Please adv
Regards
Pankaj
18th September 2012 From India, Muzaffarpur
Dear Kamal,
I have completed 3 years in the same organisation however I was on Leave without pay for 2month as I was on maternity leave( 3month paid by organisation + 2months extra without pay) and my question is how my gratuity days will be calculated. Would it 5 years from the day the joined organisation or 5years+ 2months.
Thanks!
16th October 2012 From United States, Chicago
Dear Guest,
The Payment of Gratuity Act, 1972 prescribes five years continuous service for being eligible for payment of gratuity. Since there is no break in service for two months duration on account of post natal leave without pay, you are eligible for gratuity from the date of your joining including period of post natal LWP. However, the calculation of qualified period of service would certainly differ but it would not affect your amount of gratuity as any period in excess of six months is to be rounded of to the next full year. So the actual period of qualified service of 4 years and 10 months would be rounded of to 5 years. Mothers may avail of any kind of leave after delivery for the welfare of the new born and such post natal leave is universally recognized as leave on valid ground. I see no hurdle in your getting gratuity if you are planning to leave job immediately after completing 5 years duration including maternity leave + post natal leave without pay. Thanks & regards,
16th October 2012 From India, Pune
Hi,
Please note that to claim gratuity, 5 years should be complete. About completion more than 6 months it will be counted 1 year if you have completed 5 years. Suppose, you complete 5 years & 7 months, you will get gratuity for 6 years.
Thanks,
Rajvir Singh Beniwal
HRD Manager
26th February 2013 From India, Delhi
Dear Seniors, I had worked for a pvt ltd company from 19/02/2010 to 08/11/2014, the working period is 4 yrs 7 month 8 days,am I eligible for gratuity or not? Regards Jagannath Pandit
23rd December 2014 From India, Mumbai
Dear Mr. Rajiv Singh Beniwal;
Your information is appreciated. However would you please refer the supportings in Act 1972.
In fact the Gratuity eligibility as per 1972, if we interpret with respect to Sec 2A "the defintiton of Continuous Service" and the Section 4 "the payment of Gratuity for 5 years Continous Service" was the basis of the verdict Given by Madras HC. If you or any others have any comments, please.
25th February 2015 From India, Sirsa
If the Gratuity Amount comes under Cost To Company or CTC, can this follow Act 1972?
26th February 2015 From India, Sirsa
HI
I Have Completed 4 Years 8 Months (From 01/04/2009 to 17/12/2015). Am I Eligible For Gratuity?
I Have Gone Through An Article Which Says That Eligibility For Payment Of Gratuity Is 5 Years. Quantum Of Service Will Be Consider Full Year If Some One Has Completed 6 Month Or More Than That.
Pl Advice To Me Regarding My Eligibility Of Payment Of Gratuity.
Thanks,
leena
19th March 2016
Any employee who has completed his 5 years of service in a concerns. he is entitle for Gratuity benefit. In addition if an employee who has compeleted 4 years 9 months he is not entitle for Gratuity. Generally at the time of calculation of Gratuity if an employee has completed 5 years 6 months it wil be consider as 6 years for round off other than 5 years less than are not eligible for the payment of gratuity. hope you like dis . thank u
19th March 2016 From Kazakhstan, Aktau
Hi hope u fine
As per payment of Gratuity Act
It clearly explained any employee who has compeleted 5 years of service in a business concerns. he is eligible for
Gratuity otherwise not. In your case you are not eligible for Gratuity. Hope my explanation satisfy you.
19th March 2016 From Kazakhstan, Aktau
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