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Dear Friends,
One of my friends recently resigned his position as VP-Projects from a reputed Construction in Chennai.He served the company with distinction for 4 yrs and 10 months.However when he got relieved, he found out that the company is not paying him the gratuity claiming that he has not completed 5 yrs of service.I would want to know if he is eligible to get the gratuity and if yes what the are options he can have.I would also like to add here that the company has a Gratuity Trust managed by LIC.
Waiting for your early response.
Deepak P
17th October 2013 From India, Chennai
He is not eligible — — — — — — — — — — — — — — — — — Pon
17th October 2013 From India, Lucknow
Dear Deepak
The 4 years and 240 days clause is applicable for those who are retired or died and not for resignation cases. For resignation cases 5 years of service is compulsory. Hence the person is not eligible to claim gratuity. The condoning or waiving of the period of 2 months will not applicable for resigned cases.
17th October 2013 From India, Kumbakonam
Dear Mr Deepak, Yes you are entitled for Gratuity even not less than 5 years service, Please find attached the judgment of Hon. Madras High court for Your reference. Thanks Sujeet
17th October 2013 From India, Jaipur

Attached Files
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File Type: pdf Gratuity Madras High court Judgement[1].pdf (1.55 MB, 314 views)

Dear Deepak,
Your friend is entitled to Gratuity because of a deeming clause of completion of service of 5 years. I advice you to serve a notice to the employer in Form "I" demanding amount of Gratuity for 5 years of service in the following manner:
Rate = Salary/26
Amount of Gratuity= 15 X 5 X Rate
In case no reply is received or your claim is rejected, approach the Controlling Authority under PG Act. In your state, Assistant Commissioner of Labour is the proper authority. File your claim in form "N" together with documents such as Appointment letter, salary slip, notice etc. I am sure you will have your claim.
In addition, you also can file a complaint to the Inspector under PG Act, who happens to be the Government Labour Officer
17th October 2013 From India, Kolhapur
Dear Mr. Deepak, As other members suggests, your friend entitled for Gratuity.even if he doesnt reaches 5 Years of will be applicable only in chennai region.
17th October 2013 From India, Hyderabad
No the employee is not eligible.
Eligibility criteria of gratuity is ,
1) Five years of continue service.
2) If the employee died within a minimum period (may be not completed in 5 years) is eligible.

17th October 2013 From India, Chennai
boss. As you have mentioned about 240 days clause applicable to only retired on completion of 4.10 yrs. Please provide the supporting document to all of us.
17th October 2013 From India, Ahmadabad
yes, he is eligible for completion for 4.10yrs. Service and contact to local inspector of factories and assistant labour commmisioner with relieved documents that reveal continued rendering of service.
17th October 2013 From India, Ahmadabad
Please check the attachment available in this thread which was attached by Sujeeti. In that High Court of Chennai has instructed to pay for the person who completed 4 years 10 months and 18 days. Normally the short period waiving off will be done for those who died or retired and not for those resigned. That waiving off procedure will be in the company HR Policy and not on any act or rules.
17th October 2013 From India, Kumbakonam
I have seen most of the replies. I expected analysis of the term "Continuous Service" in PGA and the deeming proviso to that definition. It appears that Gratuity is payable only when 5 years of service is completed. But if you consider the definition of "continuous service", it allows you to claim gratuity upon service of 4 years and 240 days in the fifth year. That means 4 years and 8 months service is sufficient to claim the Gratuity. This interpretation is irrespective of the Judgement of Chennai HC.
In the case in hand, there is a service of 4 years and 10 months. Hence, there should not be any difficulty in claiming Gratuity. 5 years of service in actual terms comes to 4 years and 240 days only.
This interpretation is applicable to all over India and not just restricted to the State of TN only.
Adv. K. H. Kulkarni.
17th October 2013 From India, Kolhapur
Dear friends,

As all you know this subject is the one of a few matters discussed in this forum repeatedly. And again and again same points are pressed by different schools of thoughts, one is for and the other is against. In my view, the stand taken by those who don't advocate 4 yrs.240 days is a pessimistic one rather than based on irresistible sound legal provisions. This I'm saying on the strength of Supreme Court's judgment in the matter of what constitute a "continuous service" i.e. 240 days. As per this judgment it would suffice if an employee completes 240 days of "continuous service" each year. And thus there cannot be a different treatment for the 5th year, being the terminal year i.e.4 yrs. 240 days in 5th year should automatically qualify for minimum gratuity under the Gratuity Act. And I did not see judgments where in gratuity for those not completed full 5 yrs of service legally denied gratuity. I fully endorse the views of Adv. K.H.Kulkarni and feel sorry for those this concept.
19th October 2013 From India, Bangalore

Attached Files
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File Type: doc 240 DAYS Case Law.doc (70.5 KB, 129 views)
File Type: doc Gratuity-Case laws.doc (91.0 KB, 101 views)
File Type: doc Gratuity - 4yrs 8months.doc (37.5 KB, 79 views)

He is eligible if he present 240 days in a fifth year.means 4 year and 240 days. In that case he is eligible for gratuity.
22nd October 2013 From India, Gandhinagar
Dear Mr. Bhaskar,

Please read the Judgment shared by Mr. Sujeet of Madras High Court which is binding on the state of Tamil Nadu. Honb'le Justice Abdul Wahab clearly stated that a person who had been in service of an organization for 240 days or more in fifth year are eligible for Gratuity. If you read the Judgment closely you will find that the person who claimed for the Gratuity in the Case was neither terminated nor died but resigned. Hence there is no question of short period waiving. More over there is no such thing. Mr. Deepak's Friend's Case is exectly the same as the attached Judgment. Even here in Delhi you can claim Gratuity by applying the same principle given under the Madras High Judgement on the subject. Talking of Chennai, it has binding effect and Mr. Deepak's Friend is totally entitled to gratuity even if he resigned. If a company is managing its trust it cannot make its own rules to govern the trust. It can give more but not less than what prescribed under the Act.

I would request you to give it another consideration in the light of the Judgement attached. In my opinion He is Entitled for Gratuity.
22nd October 2013 From India, New Delhi
I think Deepak is eligible for the per my knowledge mr Deepak must claim as tod by boss.
25th October 2013 From India, Gurgaon
Sir, I am 100 percent sure that the person is eligible for gratuity as few days back one employee from my company resigned with same situation and I myself have handed over the cheque from lic trust.
25th October 2013 From India, Gurgaon
In addition to above members i also agree that the concern person is eligible for payment of gratuity in all respect. Thanks & Regards, From, Sumit Kumar Saxena
4th January 2014 From India, Ghaziabad
i want to know about the Gratitude eligibility please suggest the exact days : in few of them mentioned in 4yrs and 240 days eligibility of gratitude in few of them commenting complete 5 yrs pls suggest ..
8th January 2014 From India, Bangalore
Dear Vasu,
The minimum eligibility is 4 years and 240 days in 5th year. In this way it becomes 5 years of continuous service and makes a person eligible for gratuity.
Hope your query is answered. Feel free to revert in case of any doubt.
8th January 2014 From India, New Delhi
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