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Dear All,
It is correct that after completion of 4 year and 240 days employee can claim the Gratuity as the same is not defined in Payment of Gratuity Act but as the decision attached it can be claimed.
Thanks,
Ravindra Kumar Dubey
Personnel Officer
Allanasons Limited
9311210795

From India, Phagwara

Attached Files
File Type: pdf Supreme Court Decision on Gratuity Act 1972.pdf (380.6 KB, 378 views)

The act specifically mentions that an employee is entitiled to get Gratuity if he has completed 5 years of continious working as per formula herein below:- Basic + DA * 15/26. regards, SK Tyagi
From India, Delhi
I think the Madras HC's decision in this regard is also upheld by the SC.
I.e. 4 years and minimum 240 days physical working in the 5th year - the period is eligible to get gratuity.
Experts pl confirm.

From India, Pune
The gratuity eligibility as per Gratuity Act 1972 is 5 years of continuous service. Sub section (2) of section 4 is for calculation of gratuity and not for the eligibility of gratuity.

But as per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.

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."

Now almost all organizations are paying gratuity if an employee has completed 4 years of continuous service and 240 days continuous working in 5th year.

From India, Pune
Dear Ulhas ji,
You said, as per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity. I wish to ask you, where is such judgment?
The Supreme Court judgment in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)] is under ID Act and not under Gratuity Act. By virtue of definition of continuous service under ID Act and Gratuity Act is synonymous; it may not be, according to me, appropriate to adopt it in Gratuity. Both the enactments are different with different purpose / object.
Even many employers ( not almost all) are paying gratuity now a days on completing 4 years and 240 days in 5th year, you can not compel any employer to pay Gratuity under such circumstances.

From India, Mumbai
Dear All
We are paying the bonus to contractual employees as per the act . but the unpaid amount of bonus where to paid, is take back to our Acoounts dept, or whetehr it should be paid to Welfare office Mumbai , if yes have a format , or let me know the procedure how to paid?
Devendra.

From India, Pune
Deven ji,
Under section 6A of Maharashtra Labour Welfare Act, unpaid Accumulation means any payments due to the employees but not made to them, such payment / unpaid accumulation is to be transferred MLW Board within a period of 3 years from the date on which they became due.
All unpaid accumulations shall be deemed to be abandoned property.

From India, Mumbai
dear sir,
thanks a lot, as per court decision 4 yrs 240 days in eligible for gratuity, my hr head of last company discussed this issue a lot & decided to give me the gratuity, finally i have got the same, thx to all

From India, Gurgaon
four years continues service means how many days need every year
From United Kingdom, London
can any one have knowledge about - four years continues service means how many days need every year ?
From India, Bengaluru

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