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Dineshpadwale
Dear Professionals, One of my friends is working for a small company for 5 years his date of joining was 31/03/2018 and his last working month was April 2023. He is completing his 5-year tenure as per the gratuity act prescribed job duration threshold limit and He is eligible for 5 years of gratuity as per the Gratuity Act, but his employer is saying when he was join in 2018 their employee count was less than 10 hence that time gratuity Act was not applicable to them.

This act was applicable to them since 2020 due to their employee count was increased by more than 10 employees, by saying this reason his employer is refused to pay him gratuity due to less than 5-year service from the gratuity applicable year 2020. How to counter this reason, please advice.

From India, Nashik
vmlakshminarayanan
919

Hi,

Your friend is very much eligible for Gratuity as he completed 5 years of continuous service with the Company. Gratuity cannot be denied just on the grounds that Company didn't came under the purview of Gratuity Act at the time of his joining (2018). Now that employee is getting relieved by year 2023 wherein Gratuity Act is very much applicable , for all employees who had completed 5 years continuous service period should be paid Gratuity at the time of relieving.

In case if the Employer refuse to pay even after proper application, then advise your Friend to appeal before the Assistant Commissioner of Labour ( of the respective office jurisdiction). Upon direction from ACL Employer don't have any option except to pay.

From India, Madras
Dineshpadwale
Thanks you Sir for quick advice
From India, Nashik
nathrao
3131

5 years service is basic eligibility for Gratuity.Any employee who has put in this many years of services is entitled to benefits of Gratuity.Time from which year gratuity Act was made applicable is not the criteria.
Ask you friend to apply and see the response. There are Govt authorities who can enforce legl provisions.

From India, Pune
PRABHAT RANJAN MOHANTY
581

Dear Friend,
I am also have same view, as Mr Lakshmi Narayan opined. That, your friend is very much eligible for Gratuity as he has been completed 5 years of continuous service with the Company.
It doesn't have any meaning on part of the company that in 2018 the Gratuity Act was not applicable because the establishment was with less manpower but subsequently the strength has increased and the act becoming applicable. Then, the employees who are working there in become eligible irrespective of their joining date.
You advice your friend to make an application for the payment of gratuity in prescribed Form and send it to his employer in registered post. If the establishment doesn't pay then make a case before the DM or in court in claim of gratuity.

From India, Mumbai
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