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Sujith Raj
Human Resource Manager

As the Act says 5 years for Gratuity eligibility and no amendment still and on other side with respect to Court orders 4 years 240 days are calculated for gratuity. Companies are following both ways..can any one clarify what will the correct approach??
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hi
both are correct. because if an employees lefts the company with nearly completing his 5 years he will loose his gratuity so the court direction to protect the employee gratuity the even employee can take gratuity 4 years 240 days.
regds
As per the verdict of Madras High Court in the year of 2006 PE is liable to pay gratuity to the contractual labourers, working for 5 years or more. Can any one clarify the payment procedure?
e.g A is working for 10 years in a co, under the pay roll of B, C & D. His last employer is D and under D's payroll he is working for 3 years. A has decided to leave the job and requested to pay all his outstanding including gratuity. Now, question is who will pay the gratuty and how?
Rgds..
Dear Sujith Raj,
It is true that the 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 but sometimes problem comes on the question of as to whether an employee is required to be present on all the working days in a year. It is because of this reason that the Act has clarified under its Section 2A that for the calculations of period of one year, if an employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under an employer for not less than two hundred and forty days in an establishment, which works for not less than six days in a week.In such cases an employee stand eligible for the payment of gratuity.
BS Kalsi
Member since Aug 2011
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