Gratuity Fund - What is the rule of 4 years and 190 days? - CiteHR
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Suresh2511
Labour Consultant
Drbijoy
Med. Superintendent
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I have worked in my company from 19th September, 2013 to 7th May, 2018.
It is a 5 working days company.
Query : Am I eligible for Gratuity ?
What is the rule of 4years and 190 days? If any, kindly give reference of the document.
Thanks in advance.

Dear ANNONYMOUS Friend, Your employer is not liable to pay you Gratuity under the POG Act since you have not completed 5 years continuous service with the employer. There is no such rule of 4 years & ....... as you stated.
Hi,
As per my understanding and interpretation of law, you are very much entitled for gratuity if you completed continuously 4.5 years of your job. Further, each year you must have completed at least 240 working days.
Thanks in anticipation
Shamsheer Pal Singh Dhillon
Head Legal

Shamsheer Jee,
There is no amendment in Payment of Gratuity Act to pay gratuity if employee has not worked continuous service of 5 yrs.
There are case laws, where Courts have awarded Judgement to pay gratuity for working for 4 yrs. & >240 days. But this not binding on company, one has to take shelter of law & fight.
I agree with Shri Keshav Korgaonkar.
Regards,
Suresh

Hi,
First of all, There is no rule of 4 years and 190/240 days. The Payment of Gratuity Act is very clear on 5 years of continuous service. If you joined duty on 19th Sept. 2013 then you are entitled to gratuity if you resign on or after 19th Sept 2018. During each of these years you should have worked a minimum of 190/240 days during each of the years to qualify for continuous service. As mentioned by another member, individual court cases are not binding and do not mean the law is amended. 190/240 days is not applicable to regular salaried employees.

Dear Keshav Jee and Suresh Jee.
With due respect to you all and to your chair, the submission made toward ANONYMOUS Friend, by Keshav & Suresh jee to Shamsheer jee
is not in consonance with the pronouncement of Judgment by Apex Court in M/S. Kusum Ingots & Alloys Ltd vs Union Of India And Anr .
Others learned Members of Cite Hr has any others views are well come to share their views
Regards,

For the calculation of number of years of service, anything exceeding 6 months shall be rounded off to the next higher number and in this case the staff has completed more than 4 years and 7 months, in our opining he has to be considered for payment of gratuity.
Hi,
Basically gratuity can claim after working of 5 years of continuous services , but as per court judgment company have to pay gratuity on working of following ...........
1. 4 Years and 240 working days
2. 4 Years and 7 months
Note-------Even 4 Yeras and 6 months can not jump up to 5 years.
but most of companies are not following such norms because it particular judgement in particular cases.
Now my question is Whether gratuity is your CTC part or not.
Regards
Dhananjoy Kumar.

Crux of the Act:
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.
Definition of Continuous service.
(1) An employee shall be said to be in continuous service for a period if he has been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, LOP, lay off, strike or a lock-out.
(2) where an employee is not in continuous service within the meaning of clause (1), he shall be deemed to be in continuous service under the employer –
(a) if the employee during twelve calendar months, has actually worked under the employer for not less than
(i) 190 days ‘P’resent, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week;
(ii) 240 days ‘P’resent, in establishment which works for Six or Seven days in a week.
(Maternity leave, Accident, Laid-off period PL consumed of last year =P )
Which means one should be given gratuity after
4 years 9 Months 8 Days Calendar days including weekly offs
- minus ML and PLs of last year
+ plus CL, SL, LWP, A, PatL, etc.
+ Holidays
For example 4 yrs x 365 + 9 Months x 30.5 + 8 + 4 CL – 10 PL + 8 Holidays = 1745 days
-Sanjay

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