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Dear Members, Please enlighten, Can an Employer pay Gratuity to its employees for service period of 3 years, (As per Gratuity act) ?
From India, Delhi
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Hello Ajay,
According to my knowledge to pay the employee any gratuity from employer, minimum 5 years of service is must.
From India, Jaipur
Dear Mr Ajay Sharma, Please go through The Payment of Gratuity Act, 1972 & relevant rules before raising query
Employer can pay Gratuity to an Employee who has completed just 3 Years of Service not under the Act, but as a gesture of goodwill etc. But, this will set a precedent
From India, New Delhi
Gratuity is a sum of money that the employer pays to employee for services rendered in the company.
Payment of Gratuity Act 1972 lays down some terms and conditions.
Period of 5 years continuous service is mentioned as a primary condition for eligibility.
However employer can on his own pay gratuity after 3 years also but it is not mandatory as per the Act.
It is a kind of good will gesture to an exiting employee as a reward for good service.
No legal compulsion exists in this case.
From India, Pune
As per gratuity act a employee has to complete minimum 5 years continue service.if your company will be giving gratuity below 5 years,it will benefit for employees but as per indian labour law it not applicable.
From India, Chennai
As per gratuity act a employee was death or terminated of services company will be giving gratuity if employees was worked less then 5 years of services,it will benefit for employees but as per indian labour law it not applicable.
From India, Noida
Dear Hr@slindia, Please Post with due application of mind. your statement that "As per gratuity act a employee was death or terminated of services company will be giving gratuity if employees was worked less then 5 years of services"
Please note that Employees who have not completed 5 Years will not get Gratuity in case their Service is Terminated
From India, New Delhi
It is possible only in case of death and termination when no boundation of 5 years continuous service.
From India, Pune
Dear Sharma: The query is answered by Section 4 (1) of the Payment of Gratuity Act 1972, read as follows:
4. Payment of gratuity.- (1) 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,--
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
So it is only in the event of death or disablement that gratuity becomes due and payable before completion of five years continuous service as per the PGA.
From India, Mumbai
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