Harsh Kumar Mehta
Consultant In Labour Laws/hr
Dy. General Manager - Hr & Admn.
Statutory Complaince/labour & Employment
Asst Manager Hr
Compliance Executive
Sankar Shome
Gm - Hr & Admin
Retired Principal
Executive Accounts
Design Engineer
+15 Others

Dear Collegeue,
Can I have insight in to the application of Gratuity act on laibility of the Company to pay gratuity, if the employee has completed the service of 4 years and 240 working days, but not 5 years.
I shall be greatful, if you can share any amendments of Gratuity Act, verdit of Supreme Court / High court in this regard.
7th June 2014 From India, Pune
Dear Anil, As per the Gratuity Act, 1971 every employee is eligible only after completion of 5 years continuous service in one industry. Below 5 years service is not eligible. Rgds PGR
7th June 2014 From India, Hyderabad
There is a judgement from Madras High Court which is enclosed herewith for your reference
7th June 2014 From India, Ahmadabad

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Hi to all,
I'm working in a private limited company past 5yrs, i came to know that gratuity policy is not undertaken in this company, in that case, will i not get any gratuity benefits i need to know?
7th June 2014 From India, Bangalore
Dear All, Is this judgement applicable all over India? Regards, Aparna Singh
9th June 2014 From India, Delhi
The judgment from Madras High Court is applicable for that particular case, but the said judgment can be referred while challenging any company for gratuity. The supreme court judgment can only be applicable for all over india
9th June 2014 From India, Ahmadabad
Dear members,
If you have any suggestions, please forward or share your experience, if you have come across such similiar sitiations in the past.
The above discussins are not concluded about the subject matter of payment of Gratuity after 4 years and 240 working days.
10th June 2014 From India, Pune
Employee upon completion of 4 years and 240 working days is eligible for Gratuity. I have got the claims processed & settled for my colleagues with 4 years and 240 working days.
11th June 2014 From India, Bangalore
Dear Mr Anil Kumar, As per the gratuity act an employee who completes 4 years and 240 days is eligible for gratutity of 5 years. ~DM~
11th June 2014 From India, Mumbai
Dear All, It will be highly appreciated your sharing of experience/participation to form a general opinion with respebt to the subject matter. Anil
12th June 2014 From India, Pune
One of my friend worked 6 years 8 months and 10 days in a company and his last basic his 6000 so how much gratuity he will receive. And wats the formula for it.
12th June 2014 From India, Chandigarh
The calculation of Gratuity is as under: Rs.6,000/- — — — — — — - x 15 x 7 = Rs.24,231/- will be coming to the employee. 26 days Rgds PGR
13th June 2014 From India, Hyderabad
Dear Sir,
An employee retires in 3rd June13.
His fixed wages (Basic + DA) is Rs 10000 p.m
In May 13, the wages drawn is Rs 9000 by him. Becuase of absent of 3 daysin May 13 , he drawn wages of Rs 9000.
For gratulity calculation, should we take his last drawn wage of Rs 9000 or Rs 10000 as his contarcted wage fixed.
14th June 2014 From India, Madurai
it clear from the bare reading of section 2A, 2(b) & 2(c) of the Act that completed year of service means continuous service for one years.
2(c) defines "continuous service means service defined in section 2A.
section 2A sub section 2(b) clear speak that one year of service deemed to be continuous service if employee has worked for 240 days.
Section 4 provide the eligibility of payment of gratuity as who has rendered the continuous service of 5 years.
its logical to say that if an employee who worked for 4 years and 240 days in 5th years, than he shall be eligible for payment of gratuity taking into the consideration of section 2A sub section 2(b).
the same ratio was followed by Madras High Court in said judgment.
it is imperative that the act being social legislation should, the interpretation & construction of provision should be liberal.
Hope this satisfy your query.
Sanjay Kumar
16th June 2014
For how many hours in a month a worker can do maximum overtime ???
16th June 2014 From India, Chandigarh
As per the factories act it is 48 hours in a Quarter, which calculates to Maximum 16 hours in a month.
17th June 2014 From India, Delhi
Dear All,
From the above discussion, Mr. Sanjay has interpreted the Sections in the Gratuity Act with respect to completion of 5 years service to get eligibility for Gratuity paymnets. It is logical and contain the concept of protection to labours in such situations.
If some one to contradict with different case study / interpretation, please come and share you view before we are concluding the matter.
18th June 2014 From India, Pune
Dear all,
It means If employee has completed 4 years service and he has also completed 240 days of working days in fifth year, that means , that employee is tenable (eligible) for to get the gratuity benefit for five years. And if 240 days not worked in fifth year, he is not eligible for Gratuity benefits.
Am i right? please let me reply, anyone clear with sure.
Nilesh Bhatt
3rd September 2014 From India, Vadodara
Who is responsible to pay the gratuity? Naturally employer. But who should initiate? Is it employer or employee? Will you please clarify as per Gratuity act. Thanks Vinayak
5th September 2014 From India, Mumbai
Dear All
It is very nice to have a healthy interaction on this site.
Before putting our thoughts we hv to be very sure that what we are doing is correct, bcos our opinion is some time make the policymakers/decision makers to re think about their policy before implementation.
Our comments/reply should substantiate with some documentary evidences like Judgements, or G.O's etc
I wish one and all a successful career
A Venkattaraman
General Manager - HR and ADMIN
Agada Healthcare Pvt Ltd
Contact No:7299995838
6th September 2014 From India, Mumbai
1. Mr. Vinayakjm has raised the issue as to who should initiate the payment of gratuity as per said Act. In this connection, I may inform that as per The Payment of Gratuity (Central) Rules, 1972 application for payment of gratuity on prescribed form is to be submitted by the employee or nominee within 30 days on which date gratuity becomes payable to him (Rule 7). Further procedure has also been laid down in said Rules.
2. I think, you may not be covered under said Central Rules. Therefore, you may study the Rules framed by the appropriate State Govt., where your office/unit is located and may find out the procedure of such claim of gratuity as laid down in said rules.
3. I hope, you will find the correct procedure in said rules.
6th September 2014 From India, Noida
Dear All,
A slight deviation had happened to our core issue of eligibility of Gratuity payment after 4 years 240 working days of serivce.
Finally Mr. Nilesh had raised a question of legality of above eligibility.
If Madras High Court had given its order pertaining to the above subject, is it necessary to consider as a guiding principle to similiar cases in other location than Tamilnadu?
Can someone share a similiar verdit/procedure happenrd somewhere else?
10th September 2014 From India, Pune
Hello All,
I am working in a private company and working since feb 2010, I have resigned on Jan 19.
I have completed 4.11 years in this company and now I am in notice period.
Am I eligible for the Gratuity, as company management is saying I have not completed 5 years.
Please Guide.
Neha More
4th February 2015 From India, Pune
Gratuity is a gift/reward by an employers when an employee leave/resign the company. It eligible when an employee completes 5 or more years in a company.
5th February 2015 From Pakistan, Karachi
Hello Sir,
I am Venkateswaran. I have jointed as a Graduate Trainee Engineer in private company. I am moving out of this company now. Totally i have 4 years 10 months experience. I am eligible to get gratuity or not. Kindly advise on this and as soon as possible.
Many Thanks!
20th March 2015 From India, Chennai
Dear all
I m worinking with an export house situated in gurgaon haryana. A worker has complete 4 years and 7 months,his doj is 10/01/2011and is to fnf on 10/09/2015.
Is hi eligible for gratuity pls tell me asap.
7th September 2015 From India
Hi.. If any person completed 4 Yrs 240 Days of service means, they will be eligible to get the Gratuity.. Regards Ram
8th September 2015 From India, Hyderabad
I'm working in a private limited company , i am completing 4.11years as a contract employee but at last month the new fm vendor is coming , I just want to know am i applicable for gratuity . if not plz assist me ????
14th September 2015 From India, Thane
Search in indiankanoon.org for the caption and you will get the judgement. Do some R&D on net. Develop the habit.
13th October 2015 From India, Mumbai
dear sir,
I have a query about gratuity, I have joined on 02/10/2007 & left the job on 01/07/2015 let me know how many year of service i have completed, during the service period i have utilised paid leave only. but company has counting 7 year of service, as per there calculation of year of service they are deleted 02/10/2007 to 31/12/2007 period & 01/01/2015 to 30/06/2015 in this period i have not completed 240 day. whether it is correct. please explain me about how to calculate year of service.
guru kalshetti
31st October 2015 From India, Pune
Its wrong calculation the employer has done, the calculation of 240 days in a calendar year is not stated anywhere in the Act as far as my knowledge is concerned. Please ask the HR/Accounts to comment on such calculation.
2nd November 2015 From India, Ahmadabad
240 working days?? Is this includes weekly off holidays and leaves taken??
20th May 2016 From India, Delhi
Hi. I have joined an organisation on 12th March 2012 & my last day of working was 02 January 2017. So am I eligible for gratuity.
1st February 2017
Yes you are eligible for Gratuity as you have completed 4 years and 240 days of the 5th year.
2nd February 2017 From India, Ahmadabad
Thanks Saji. I also wanted to understand what is considered as calendar year for calculating Gratuity Jan to Dec or my Joining Date & other question is as my organisation had every sunday & alternate saturday as weekly off & as per gratuity act only sundays are to be considered as weekly off, so need clarity on the same.
3rd February 2017
Hi friends
In reply to Mr Anil Kumar T
The liability of payment of gratuity if the live employees completes the service after putting 4yrs and 240 days of service and in case the death of the employees the gratuity is payable to his/her legal heirs. On the other hand if the employee is dismissed/Discharged from his/her service due to his/Her act which cause huge loss to the institution, the management need not pay the gratuity amount to him/her if it is proved beyond doubt.
A Venkattaraman
5th February 2017 From India, Mumbai
No post mentions about meaning of 'continuous service of one year' under the act.
It means as follows: a) performing 190 days of work in a year in org that has adopted to 5-day week. b)performing 240 days of work in a year in org that has adopted to 6-day week.
Since employee has completed 240 working days in 5th year, he can claim gratuity under the act.
5th February 2017 From India, Mumbai
I have a query on gratuity . I have worked 4 yesrs 9 months in a company of 6 working days per week . The duration was 17th Sepetember 2008 to 25th june 2013( total 4years 9months 8 days). Company was limited organization.
Could you please tell me wheather i am eligible or not ?
14th June 2017 From India, Hyderabad
Dear Sattideepu
Yes you were eligible for Gratuity, but am curious to know why you are asking your eligibility now i.e. after 4 years of your leaving the organisation. To the best of my belief I am afraid its too late to claim now.
15th June 2017 From India, Ahmadabad
How to approach organization if denied and asked for references/amendment to consider 4 years 240 days cases. I know few of my colleagues who have not been considered for such benefits.
15th June 2017 From India, Bombay
If i want to claim , what documnts i need to provide them to show like i am eligible.
Is there any time limit is there for graduity claim ?
I asked the HR when i am leaving the company. He told thst i am not eligible due to 5 years not completed.
Please help me on this. I have a contacts with HR persons.
15th June 2017 From India, Hyderabad
At the time of leave i enquirer about this. our HR told that i am not eligible, because i am not completed 5 years like that. because of that i am not claimed
Is it any time limit is there for claim the gratuity amount ?
Please mention that what are documents i need to submit which support like I am eligible for the gratuity claim ?
I have a contacts with my Previous company. I will approach them .
Please help on this how to proceed further.
15th June 2017 From India, Hyderabad
Hi Siji,
At the time of leave the company i enquirer about the HR. He told that i am not eligible, because i am not completed 5 years .So that i am not claimed at that time
Is it any time limit is there for claim the gratuity amount ?
Please mention that what are documents i need to submit which support like I am eligible for the gratuity claim ?
I have a contacts with my Previous company. I will approach them .
Please help on this how to proceed further.
15th June 2017 From India, Hyderabad
Dear Sanket
Sorry for delay in replying for Gratuity purpose the date of joining till your last date of working with the company is considered as continous service and not calender/financial year is considered. There is no provision of excluding weekly off.
16th June 2017 From India, Ahmadabad
Dear Satya, Ghanshyam and Anonymous
As per the POG Act the employee has to apply to the controlling authority within 30 days, nevertheless you can still try claiming it and if the controlling authority ask the employer to make the payment then it will be paid with interest till now.
16th June 2017 From India, Ahmadabad
Dear All
Let me know the clarity on the eligibility for gratuity for workers working in the factory at electrical division under the sub contract.
So how we can take eligibility means on 4 years service completion or 240 working days or 5 years completion.
Hence kindly please suggest me.
19th July 2017 From India, Visakhapatnam
240 days on the 5th year is treated as whole completed year hence if any employee leaves after completing 4 years and 240 days on the fifth year are eligible for Gratuity
31st July 2017 From India, Ahmadabad
Hi All,
Any one please clarify if the employee medical expenses can be adjusted after his termination?.
21st September 2017 From India, Bangalore
Dear Sudhakar
Please elaborate your query, the medical expense reimbursed from the Mediclaim Policy of the company/ ESIC or any loan given to employee for Medical expense/assistance from the FnF of the employee ???
22nd September 2017 From India, Ahmadabad
Where should I complain about my gratuity not received?
10th November 2017 From India, Mumbai

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