Queries
Dear Members, Please enlighten, Can an Employer pay Gratuity to its employees for service period of 3 years, (As per Gratuity act) ?
1st December 2017 From India, Delhi

PARTICIPATING IN DISCUSSION:
Srinath Sai Ram
Hr Manager
KK!HR
Management Consultancy
S S Mishra
Agm Hr&admin
Rashmi Meshram
Hr Manager
+4 Others

Hello Ajay,

According to my knowledge to pay the employee any gratuity from employer, minimum 5 years of service is must.
1st December 2017 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
1st December 2017 From India, New Delhi

nathrao 1541
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.
1st December 2017 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.
2nd December 2017 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.
2nd December 2017 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
2nd December 2017 From India, New Delhi

It is possible only in case of death and termination when no boundation of 5 years continuous service.
5th December 2017 From India, Pune

KK!HR 146
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.
6th December 2017 From India, Mumbai

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