abhishek.pawar
I joined my company i.e. a Services-based Software MNC in Bangalore on July 5th, 2016. I have completed 4 years and 9 months in this organization. If I resign on 15th April 2021, my last working day would be 90 days later i.e. 14th July 2021. This means by 14th July 2021 I will have 5 years completed. The question is, will I be eligible for Gratuity if I complete my 5 years in my notice period?

umakanthan53
6016

Dear Abhishek,

All rights and benefits of employment are available to an employee serving his notice period and since on the completion of the same only his resignation would become effective thereby ending the contract of employment, automatically, the notice period would get added to the continuous service rendered for the purpose of gratuity.

As per sec.2-A(2) of the P.G Act,1972 and in tune with the ratio decidendi of the judgment of the Madras High Court in the case of Mettur Beardsel Ltd v. Regional Labor Commissioner [ 1998 LLR 1072 ], if the employee completes 190 days in the 5th year of his service in case of an employee employed below the ground in a mine or if the establishment is one which works for less than 6 days in a week and in any other case 240 days, he shall be deemed to have completed 5 years of continuous service in the establishment.

Therefore, even now you are eligible and entitled to gratuity under the Act.

From India, Salem
PRABHAT RANJAN MOHANTY
581

Dear Abhishek,
You commenced your service on 05.07.2016 and you will be completing 5 years of service on 04.07.2021, whereas your services ends in 14.07.2021.
As per the law an employee is eligible for Gratuity on completion of 5 years continuous service. In same consideration you are eligible for Gratuity, since you have completed 5 years of service before leaving the company.

From India, Mumbai
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