Srinath Sai Ram
S S Mishra
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
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
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
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