I have been working in an MNC for the last five years, and now I am resigning with immediate effect and a short notice period. My date of joining was 28.01.2008, and I have filed my resignation on 23.01.2013, with a notice period up to 31.01.2013. According to my contract, I have a two-month notice period.
Could you please confirm my eligibility for gratuity and provide your suggestions on the same?
Thank you.
From India, Chennai
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Could you please confirm my eligibility for gratuity and provide your suggestions on the same?
Thank you.
From India, Chennai
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Gratuity Eligibility Under the Payment of Gratuity Act
As per the Payment of Gratuity Act, an employee is eligible for gratuity provided they have rendered continuous service for not less than 5 years. However, there is a court judgment stating that an employee is eligible for gratuity even if they have worked for 4 years and 240 working days. Employers should take note of LOP days, i.e., Loss of Pay days (absent from work), during the calculation of gratuity.
Regards,
Suresh
From India, Bangalore
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37As per the Payment of Gratuity Act, an employee is eligible for gratuity provided they have rendered continuous service for not less than 5 years. However, there is a court judgment stating that an employee is eligible for gratuity even if they have worked for 4 years and 240 working days. Employers should take note of LOP days, i.e., Loss of Pay days (absent from work), during the calculation of gratuity.
Regards,
Suresh
From India, Bangalore
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Since you have completed the required period of time for gratuity payment, one thing that comes forward is that you have a notice period of two months but wish for a shorter notice period. As per the Gratuity Act (amended), you are eligible for gratuity payment, and the process can be initiated using Form-I enclosed by Kumar.S. Monica has provided a detailed description of this.
Regards,
Ajay
From India, Jamshedpur
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Regards,
Ajay
From India, Jamshedpur
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Dear Mari_eng,
The applicability of gratuity depends on the "Date of Leaving" from the organization. As you have mentioned that you resigned on 23-01-2013, on that day, your service tenure is less than 5 years. However, the date that matters is the last day you worked. You have mentioned that you gave notice up to 31-01-2013. If you worked until 31-01-2013, then your service tenure is more than 5 years, and according to the Payment of Gratuity Act, 1972, you are eligible for the payment of gratuity.
Gratuity Calculation
The gratuity can be calculated by the formula below:
((Last Basic + DA) * 15 * 5) / 26 = Gratuity Payment [In your case]
Please let me know if you need any further assistance.
Thank you.
Regards
From India, Delhi
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The applicability of gratuity depends on the "Date of Leaving" from the organization. As you have mentioned that you resigned on 23-01-2013, on that day, your service tenure is less than 5 years. However, the date that matters is the last day you worked. You have mentioned that you gave notice up to 31-01-2013. If you worked until 31-01-2013, then your service tenure is more than 5 years, and according to the Payment of Gratuity Act, 1972, you are eligible for the payment of gratuity.
Gratuity Calculation
The gratuity can be calculated by the formula below:
((Last Basic + DA) * 15 * 5) / 26 = Gratuity Payment [In your case]
Please let me know if you need any further assistance.
Thank you.
Regards
From India, Delhi
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I have been working at the firm for the last eight years, and now I am going to resign with immediate effect, serving a short notice period. My date of joining was 29.09.2005, and the resignation was filed on 15.10.2014.
Kindly inform me about my eligibility for gratuity and provide your suggestions regarding the same.
From India, Hyderabad
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Kindly inform me about my eligibility for gratuity and provide your suggestions regarding the same.
From India, Hyderabad
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Period of training shall be counted for the calculation of gratuity-HIGH COURT JUDGMENT.doc
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