Apex Management
Labour Laws Consultants
Korgaonkar K A
Gm (hr)
Senior Manager/freelance Consultant
Manager- Hr Compliance
Sr. Project Manager
Amit Sheth
Hr Manager
+12 Others

Thread Started by #manan1019@gmail.com

I am working in the one IT company since 12-May-2010 and i have resigned on 24-Jan-2015 and my last day of company will be 24-Mar-2015. Till today i have completed 4 years, 9 months .We have 5 days a week working company .So whether i am eligible for gratuity ? I have gone through many blogs some says i am eligible . If i am eligible then please help to get some legal document which says that i am eligible.
If yes How to process further for prove HR team.
Please help..!
6th March 2015 From India, Ahmedabad
Yes, you are 100 percent eligible. No doubt in that. I also had city completed 4 yrs and 8 months in my last company but company was denying initially to give gratuity. Later they gave me the gratuity when i produced some legal documents to them.
6th March 2015 From India, Bangalore
Dear Djoshi26, If I am your past employer, I would have not paid you the Gratuity unless you were subjected to judiclature of Madras HC. This subject is discussed earlier many times in this forum.
6th March 2015 From India, Mumbai
Dear friend, If you have completed more than 5 years and, say complted 6 years and 7 months, then you will be considered as 7 years for gratuity calculation. Mind it, that you should have continous service without any break for 5 years. If so you are eligible for gratuity.>>>>>>>>>>>b.sekar
6th March 2015 From India, Chennai
5 yrs of service is must. please use this link for Calculations Gratuity Calculator: Online Gratuity Calculator to find the Gratuity
6th March 2015 From India, Chennai
But in some section i have read of Act it is mention that 240 days is fine . In definition of continuous service it is mention they mention like this.
6th March 2015 From India, Ahmedabad
Dear gratuity is completed after 4yr 6 month and your working period is more than this so you are surely ok for it
7th March 2015 From India, Delhi
Based on some of the judicial pronouncements, if any employee completed 4 years and 240 days of physical working days in 5 th year , he is eligible for gratuity.
7th March 2015 From India, Bangalore
Dear Friends who are of opinion that Gratuity is payable even though the employees have not completed 5 years service, May I request you Sirs, supportings for your say?
7th March 2015 From India, Mumbai
Dear Manan,
You are eligible for gratuity. as per law it is 4 years and 240 working days. when we say working days it means 240 days for which you have received salary irrespective of 5 or 6 days working in the week. many employer and even human resource personnels deny giving out because of non awareness of this fact of 4 years 240 days. Even in this posting you will find people posting you as non eligible. Don't worry if your employer says no then please write to me on harpreet.walia@live.com to get the ruling copy which supersedes all.
Harpreet Walia.
7th March 2015 From India, New Delhi
Dear all
now a days some companies are working out the CTC with gratuity in that case if you were appointed and company has worked out your gratuity in your CTC than you can ask for it otherwise on completion of 5years it will be applicable to you
thanks and regards
7th March 2015 From India, Mumbai
Dear Harpreet ji,
Please share the ruling to entire forum.
My humble request to members to check the legality from any expert before writing any thing in this regards. In this forum, there are number of threads on this subject In which I have expressed my views with supports.
I am representing number of Corporates and I have been advising them that the Gratuity is not payable in case employee has not completed 5 years of service (except in TN). I also tell the participants / students of my seminars & lectures.
Members are requested to correct me if I am wrong with convincing supportings.
7th March 2015 From India, Mumbai
Dear Keshav ji,
You are very much right Sometimes members starts sharing their experiences which is not correct. IF some employer has paid the gratuity before completion of 5 years, it does not mean that the act is got amended. It is appropriate to share the relevant rulings in this forum, basis on which they are advising the payment before completion of 5 years.
P K Sharma
7th March 2015 From India, Delhi
In general.....If you have considered working days (other than sat-sun) then lets standard 22 working days in a month, so 240 days / 22 working days is 10.9 months. Total almost 4 years and 11 months.......
Is it how it should be?
9th March 2015
If any employee can complete 4 Years 8 Months 11 days service, Who is eligible for Gratuity As per Gratuity Act. But the employee can complete the above period must. Thanks, Sankar Potala
9th March 2015 From India, Pune
Dear Manan, Please take the printout of the attachement and show it to your employer. I am sure the person will not require any further discussions.
10th March 2015 From India, New Delhi

Attached Files
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File Type: pdf gratuity case- 5 year issue reference.pdf (675.0 KB, 358 views)

Dear Harpreet ji, I started feeling that this is not a right forum in which person like me should share the knowledge. Given case is well discussed in this forum earlier many times.
10th March 2015 From India, Mumbai
Mr Keshav Korgaonkar Ji, I would request you to please share your knowledge again and correct us as you do in corporate sectors as per your posting above. Might we will all learn something from you. Moreover it may be possible that the case which you have discussed many times in this forum is not in our knowledge.
About your feeling that is this the right forum for you or not, i think a person can better judge for himself instead asking some other one's opinion. we are now derailing ourselves from the topic started originally and posting things which are not required. thanks.
12th March 2015 From India, New Delhi
Dear Sir, I want to ask that whether obtaining insurance policy is compulsory for the Employer under Payment of Gratuity Act.
12th March 2015 From India, Mumbai
Dear All, kindly do let me educate in regard to eligibility & calculation of Gratuity in below situation. As per Act, I pre-suppose to consider 5 years of continuous service for its eligibility and 240 days for one completed year for 6 days week.
This is a general query : If "X" joined on 01.01.2009 &
If "X" worked for 1st Calendar year - 305 days
If "X" worked for 2nd Calendar year - 300 days
If "X" worked for 3rd Calendar year - 170 days
If "X" worked for 4th Calendar year - 320 days &
If "X" worked for 5th Calendar year - 242 days
It is presumed that Mr "X" is in continuous service without break. However, he resigned exactly after completion of 5 years service say on 02.01.2014.
Under such circumstances, whether "X" is entitle & eligible for payment of Gratuity & if yes, to what extent?
Thanks for guidance in advance.
With regards,
IR positioned at MNC
12th March 2015 From India, Gurgaon
Yes you are eligible for gratuity please see the Madras High Court Decision 1998 LLR1072 (W.P. No. 2135 of 1987)
13th March 2015 From India, Alwar
4 yrs and 240 days means 240 working days . As we all will have 240 working days in a year. Hence total 5 yrs.
14th March 2015 From India, Chennai
Dear Mr. Harpreet Walia,
Hon'ble Madras High Court verdict in respect of entitlement of gratuity before completion of five is not applicable to rest of the states .It is applicable only within the jurisdiction of Madras HC . So what Mr. Korgaonkar has said on this forum is cent per cent correct . This has been validated by leading other experts in HR/ IR/ Legal.
With this fact the discussion on this matter should come to logical closure for HR fraternity .
Anil Sharma
16th March 2015 From India, Pune
Dear All,
My wife is employed with CTS since August 02, 2010. She is under Maternity leave since 12, March 2014. She was getting paid until August 2014. She has to join back to company from May 20th 2015. In her case, could you please let me know when she will be eligible to get the Gratuity ( how long she has to serve to get the Gratuity). Her basic is 15000 and how much she will get as gratuity ?
Please let me know for further details.
17th March 2015 From India, Bangalore
hi, if company doesn’t provide any gratuity even though if we complete more than 5years . what shall we do . Company doesn’t have a gratuity policy then what happens
17th March 2015 From India
Hi Manan,....
Definitely you are not eligible for Gratuity... The primary eligibility to get Gratuity is to complete 5 years even it 4 years 11 months and 15 days also not eligible. The 240 days calculation is considered for only after completion of 5 years. Eg. if you worked 5 years and 7 months, then it could be consider as 6 years.
20th March 2015 From India, Tiruppur
Hi Guru.....
Your Mrs. has to work till 01/08/2015 end of working hours. Maternity leave is to be Gratuity calculations.
She will get as per the following calculations.
1500/26 x 15 x 5 = 43269.23.
Trust your doubt is cleared
20th March 2015 From India, Tiruppur
Hi Loveden, No doubt.... you can approach the Industrial tribunal in the jurisdiction. It is void whether the Employer having Insurance poly for Gratuity.
20th March 2015 From India, Tiruppur
Hello SaroHRD,
Thanks for the clarification. I still need few more
1. Maternity Leave: Company has given 3 months paid leave + 9 Month Loss of Pay. In this case also she is eligible for Gratuity by Aug 01, 2015?
2. 1500/26 x 15 x 5 = 43269.23.
How this calculation made?
Thanks for your time and understanding.
20th March 2015 From India, Bangalore
Hi Guru..... The 84 days maternity leave will be considered but the 9 month LOP will not consider normally.
Gratuity calculation as per act is
Per day wages x 15 days x No. of years worked.
(for monthly salary persons Monthly salary / 26 days)
21st March 2015 From India, Tiruppur
Dear Harpreet
we respect your suggestion but please note any court judgement in particular case is applicable to that case only.Gratuity act still says that eligiblity to get gratuity is five years than where from 240 days has come.we are mixing other sections to analyse the situation in our favour.if madras high court has given judgement in one case than it can not be considered it as a law.

21st March 2015 From India, Delhi
Dear Keshav jee
i too agree that eligiblity to get the gratuity is 5 years of service and on the basis of one judgement it can not become a law.Even in tamil nadhu also it is 5 years of service to get gratuity.in one case madras high cpouurt has given judgement on variouus interpretations but there is no amendm,ent in gratuity act where it is clearly mentioned 5 years service is required to become eligible for gratuity
js malik

21st March 2015 From India, Delhi
If you completed 5 years of service then you are eligible for gratuity(except in the case of Death).
21st March 2015 From India
dear friend, Tomorrow will be your last working day. If you send a mail directly to me. I will send the total act details. Here I do not know how to add word doc in which it is available.>> sekar mail ID chith1954@gmail,com
23rd March 2015 From India, Chennai
The gratuity eligibility service as per Gratuity Act 1972 is 5 years.But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.
"Judgment from Supreme Court:

"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
23rd March 2015 From India, Delhi
Dear Hrnitinji,
You are requested to read carefully the Judgment of Supreme Court and talk about.
I have read the said Judgment carefully and in one of my posts earlier I have given my views on it. You may do research on it.
In fact I had decided not to participate in this discussion, but your post compelled me to write this.
23rd March 2015 From India, Mumbai
Dear All,

We agree that the definition in the act still says 5 years, however there are many cases wherein different courts has given judgements in favour of 4 years and 240 days. I believe the judges have some sense in interpretation of this act and finding it sensible enough what the unspoken meaning of 5 years service is all about.

Also have anyone thought of putting it forward a suggestion in the forum, may not be the right area however if have had taken in the right area where the acts/laws can be considered to be modified. Also a question to those who call themselves so "expertise" that have the ever thought that why there are prevailing law/acts/. Are these for people or people are meant for them? Truly says, my thinking supports that 4 years 240 day consideration cases can be adopted to modify the act if put forwarded in the right forum. till then if even i have to raise my voice to anyone to get things in favour of me to claim the gratuity amount, i will seek support of the judgements given. Hope this will be done by others as well in all the states and then there will not be any question of validity in specific area only. we are not advocates here and also the forum is not for the advocates who run the show only on the basis of black and white. we are human resource person's who have to consider what is right and wrong and can we modify/alter the things by giving or proposing in the right direction.

24th March 2015 From India, New Delhi
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