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Have worked in a co for 4 years and 240 days. The co follows 5 day week? Please advise whether gratuity is payable or not?
Hi Dear,
As per Gratuity act, employee have to complete 5 year continuous services in a company. then she/he claim Gratuity, but some of state high court issued the circular regarding gratuity act, that employee can claim gratuity after 4 year 240 days continuous services in a company...

Please find attached Judgment by Madas HC abour Gratuity Act..,....................................................................
Sorry !!!! Dear Kuldeep, You just please send attachment again.
Please find attached...........................................................................................................

Attached Files
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File Type: pdf Gratuity - Madras HC judg%5B1%5D..pdf (1.55 MB, 864 views)

As per the Payment of Gratuity Act, 1972 if employee has completes 240 days in 5th Year then employee is eligible for Gratuity Payment for 5 years provided continuous service in last 4 years.
Gratuity shall be payable to an employee on the TERMINATION OF HIS EMPLOYMENT after he has rendered continuous service for not less than five years -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

If an establishment works less than 6 days in a week, then the number of days required for continuous service is 190 and not 240.
Pl read Section 2-A(2)(a) (i) of Payment of Gratuity Act 1972 which reads as follows
(i) one hundred and ninety days, in the case of any employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days in any other case.

Dear All,
The jurisprudence is about interpreting the provisions of law in such a way that they seem just and fair. I strongly believe that while interpreting any beneficial legislation we should give the provision the most liberal interpretation possible so that so much it favour employee and also donot do unjustice with employer.
I totally agree with Learned Justice S.M. Abdul Wahab as he has given a well reasoned judgment to the question of entitlement of gratuity. In my opinion also the entitlement of gratuity is 4 years and 240 days.
I would like to request to the members to go through the attached judgment and examine the logic given by the Ld. Justice without getting into the technicality of territorial jurisdiction.

To be eligible for Gratuity, following conditions to be fulfilled.
(1) The Act must be applicable to the establishment situated in any State other than J & K. It should be a factory, or mine, oilfield, plantation, port or railway company or short or establishment in which ten or persons are or were employed on any of the preceding twelve months.
(2) The person should come under the definition of "employee" under Section 2(e)
(3) He must have put in 5 years of continuous service, except in case of death or disability due to due to accident or disease.
(4) Gratuity is payable only at the time of termination of employment by way of superannuation, retirement or resignation and NOT PAID after completion of five years.


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