Hi All,
I have a query regarding my Gratuity. I was working with the Multinational Company in Pune. I have completed 4 Years 8 months and 25 days in my tenure in the organization (Total = 1729 Days). As per labor law you should have completed 4 years and 240 days to get your gratuity. I have completed 4 years and 265 days which is sufficient to get Gratuity. But My HR Executive (person) told me that I am not eligible for the gratuity as I haven't completed 4 years 8 months as per their calculation.
Date Of Joining = 12 Dec 2008
Date Of Leaving = 5th Sept 2013
The way they are calculating
Gratuity like
Number of Days/365 Days(A Year)
e.g.
=1729/365
=4.7369
=4.74 Months
As per their calculation I have Completed 4.74 Months.
It should be 4.8 Months to get the Gratuity as per them. (In fact, I have completed 4 years 8 months and 25 days).
My questions are
1)Are they calculating gratuity in a right Way/Manner as per government labor law?
2)Am I eligible for to get my gratuity from the organization?
From India, Mumbai
I have a query regarding my Gratuity. I was working with the Multinational Company in Pune. I have completed 4 Years 8 months and 25 days in my tenure in the organization (Total = 1729 Days). As per labor law you should have completed 4 years and 240 days to get your gratuity. I have completed 4 years and 265 days which is sufficient to get Gratuity. But My HR Executive (person) told me that I am not eligible for the gratuity as I haven't completed 4 years 8 months as per their calculation.
Date Of Joining = 12 Dec 2008
Date Of Leaving = 5th Sept 2013
The way they are calculating
Gratuity like
Number of Days/365 Days(A Year)
e.g.
=1729/365
=4.7369
=4.74 Months
As per their calculation I have Completed 4.74 Months.
It should be 4.8 Months to get the Gratuity as per them. (In fact, I have completed 4 years 8 months and 25 days).
My questions are
1)Are they calculating gratuity in a right Way/Manner as per government labor law?
2)Am I eligible for to get my gratuity from the organization?
From India, Mumbai
As per your calculation it is 1729 days so accordingly it comes to 4.74 years and not 4.74 months. If you take 4.74 years which is equivalent to 4 years and 8.8 months or 4 years and 292 days which will suffice your HR Executive's query/calculation.
As per my best knowledge for gratuity the eligibility is completion of 5 years, no doubt Madras HC judgement states the gratuity eligibility as 4 years and 240 days but the same judgement will be applicable in Pune or not, which am not sure, lets wait for other seniors to advise on this
From India, Ahmadabad
733As per my best knowledge for gratuity the eligibility is completion of 5 years, no doubt Madras HC judgement states the gratuity eligibility as 4 years and 240 days but the same judgement will be applicable in Pune or not, which am not sure, lets wait for other seniors to advise on this
From India, Ahmadabad
Dear Jay: This is no method of calculating gratuity. Section 4 and 2A of the Act has to be read together in the matter. Section 2-A(2) states that an employee shall be deemed to be in continous service during the period of one year preceding the date with reference to which calculation is to be done if he has worked for not less than 240 days in that period. So in your case the calculation has to be done with reference to the number of years completed as on 5th September 2013. So working backwards, there is no dispute on the 12 month period from 5th September 2013 to 6th September 2012, 5th September 2012 to 6th September 2011,5th September 2011 to 6th September 2010 & 5th September 2010 to 6th September 2009 as constituing continous service. Now as regards 5th September 2009 to 6th September 2008, you are short by only 99 days. So that means as per Section 2-A (2) (a) (ii) since you have worked for (approx) 266 days you are to be counted to be in contimnous service in that year and accordingly you become eligible for gratuity for the fifth year too as Section 4 of the PG Act 1972. However I marvel at the ingenuity of the argument of your HR Personnel. KK
From India, Bhopal
From India, Bhopal
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc