Query
Dear Sir, I have a query related to gratuity.

I am working for IT sector in Chennai and got resigned. Previously my company follows 4 years 190 working days rule and now it follows 4 years 240 calendar days rule to claim gratuity amount.

My Date of joining:15-mar-2013

My last date in company:15-dec-2017

I have worked for 4 years 9 month, please let me know whether am I eligible for claiming gratuity amount according to 4 years 240 days rule and 4 years 190 working days rule?.

Awaiting for your kind reply
30th November 2017 From India, Chennai

PARTICIPATING IN DISCUSSION:
Harpreetwalia
Senior Manager/freelance Consultant
KK!HR
Management Consultancy
Rainbow123
Employees Relations & Hr Advisor
+2 Others

KK!HR 173
Yes, you are eligible as per Payment of Gratuity Act .You have completed more than 4 years and 240 days of service.
1st December 2017 From India, Mumbai

nathrao 1572
Rule position is as follows:
Section 2A indicates that 'Continuous service' means an uninterrupted service and includes service interrupted by sickness, disablement due to accident during the course and arising out of employment, earned leave, maternity leave in the case female (max 12 weeks)lay off, strike or a lock oat or cessation of work not due to any fault of the employee concerned. If the service is interrupted by causes other than those enumerated above, it will not be deemed to be continuous. Section 2-A further provides that the employee shall be deemed to be in continuous service, if for minimum number of days the employee has been actually employed and worked. In the case of case of persons employed below the ground of a mine, atleast 190 days and in any other case for atleast 240 days in a year employee must have worked. If the period to be reckoned is 6 months then the above minimum number of days will be not less than 95 days in the case of mines and 120 days in other cases.
Entitlement of gratuity arises on completion of five years continous service subject to above rules.
Company may contest gratuity claim.
1st December 2017 From India, Pune

As specified by Nathrao -
You have not completed continuous service of 5 year. This provision of 4 year + 190 or 240 days became applicable in case of termination of employment, retrenchment or termination of employment on the basis of Award.
You have resigned from employment and your claim of Payment of Gratuity will not be entertained by your employer as so many established case laws are available.
2nd December 2017 From India, Mumbai

Hi Sentha,

The topic for eligibility of a person who has worked from 4 years and 240 days has widely been discussed in the past and people have segregated interpretations on the topic. Wherein the The Payment of Gratuity Act 1972, prescribes that to be eligible, a person has to render the service of 5 years without interruptions which excludes any lockouts, accidents during employment etc. which are not beyond the control of employee.

In one of the judgment by madras high court, wherein the employee filled the case against the company as of the same case you are claiming here, the decision was in favor of the employee. By the regular process if you file your case with employer then they may reject the application submitted in Form 1 however this process of filling the application cannot be escaped. If your employer fails to provide the same as usually it happens due to interpretation of the act, then you may file the case firstly to local area assistant labour commissioner referring to case copy which I am attaching for you.

Further it may happen that you won't get your desired through labour as well then you need to approach the hon able court for the same. If you required any assistance in this matter, you may contact me at my below mentioned number.
2nd December 2017 From India, New Delhi

Attached Files
File Type: pdf Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf (1.55 MB, 26 views)


Hi All,

Thanks for your response.

I have mentioned below details as specified in our company gratuity policy.

Gratuity Policy Objective:
This is a statutory payment as per the Payment of Gratuity Act, 1972.
Gratuity payment of eligible employees for their service period of not less than 4 years and 240 calendar days will be paid as part of their final settlement.

Eligibility:
In case of Separation due to resignation, retirement Gratuity is payable to you on separation after you have rendered continuous service for not less than 4 years
and 240 calendar days. (continuous service being working days excluding LOP)

My date f joining:15-Mar-2013
End date:15-Dec-2017

I completed 4 years 9 month (including weekend,Public holidays, sick leave &,paid leaves) in my company.

So kindly please clarify as per above statement am I eligible to get gratuity amount as part of final settlement?
3rd December 2017 From India, Chennai

Dear Mr. Sentha,
Since you have completed 4 years and 309 days of service, even as per your company's policy you are entitled for Gratuity. The policy excludes LOP only for calculating continuous service.
4th December 2017 From India, Chandigarh

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