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Hi,
I joined on 10th Aug 2011 and my last working day was 4th July 2016, i was short by 36 daya to complete my 5 years. Am I eligible to claim gratuity? There was no break of service during my service period.
Please help me with an appropriate section to substantiate the claim
Thanks
Amit Roy
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your question is a debatable point. You are eligible for gratuity if you completed 4 years and 240 days. But the employer has the right to deny your claim, in that case you prefer file a petition before labour court and get orders for claim on gratuity
Dear Amit Roy, You are eligible to get gratuity according to gratuity act. Even employer is denying the same please approach labour office along with relevant documents.
You are very much eligible to get the Gratuity, please fill the required form and submit within 30 days to the competent authority.
1)
As per section 4(1) of Payment of Gratuity Act, 1972.
Gratuity shall be payable to an employee on the termination of his employment after he has rendered his continuous service for not less than 5 years;
i) on his superannuation
ii) on his retirement or resignation
iii) on his death or disablement due to accident or disease
Except above clauses, Gratuity is payable in case of death or disablement even if Employee has not completed 5 years of continuous service.
As you have not completed 5 years of continuous service, you are not eligible to get the gratuity benefit.
2)
If your Employer has considered gratuity as a part of your CTC since starting of your service, then there is a case law, and in that case you will be entitled to get the gratuity amount.
Regards.
Dear Royamitk, you have not mentioned the worked days of the 5th year in service, if it is 240 days or more in the 5th year, you are definitely eligible for the gratuity benefits.
There are many court judgment stating that if any employee has completed 4 years and 240 days then the employee is eligible for gratuity. Please submit the requisite form to the competent authority immediately without further delay.
Dear Mr. Saji Would be glad if you would share reference of judgements where Gratuity is been paid on completion of 4 Yrs and 240 days. Regards.
As per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.

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 240 days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."

Now almost all organizations are paying gratuity if an employee has completed 4 years of continuous service and 240 days continuous working in 5th year
The judgement delivered by the Madras High Court on the eligibility of gratuity is attached for the convenience of the queriest.
1998 LLR 1072
MADRAS HIGH COURT
Hon’ble Mr. S.M. Abdul Wahab J.
W.P. No. 21350f1987
Decided on 12.6.1996
MetturBeardseU Ltd. (represented by Its Personnel Manager), Madras
vs.
Regional Labour Commissioner (Central)
(Authority under Payment of Gratuity Act).
Madras & Others
PAYMENT OF GRATUITY ACT 1972- Sections 2(a), 2(b), 2(c), 2(e) and 2A -'Continuous service' - Qualifying period of service by an employee –Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year as stipulated by section 2A of the Act -Thus an employee who has Put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous s6rvice of five years -His claim for gratuity is tenable.
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