Madhu.T.K
Industrial Relations And Labour Laws
Psdhingra
Legal Analyst, Hrm
R.N.Khola
Labour Laws & Ir
Abhijit_Barua
Asst. Manager Compliance
Valbooj
Manager
Sunilgaik1976@gmail.com
Advisory & Execution Of Labour Law Compliance
1962shrikant
Head - Ir/hr
Watve Ravindra
Recently I Superannuated From Leading Automobile
Atulmalve
Senior Manager-hr, Er & Admin
Jeeni
Assistant Human Resource Manager
Cms.sureshhr
Manager- Hr & Ir
Pravin.k
Hr Officer
Raj_prt
Hr Professional
Maheshmeshi
Hr Executive
G K Sharma
Service
Indrp
Service
Bshari
Hr/labour Law Consultant
+8 Others

Thread Started by #indrp

I am in working in a private limited company which follows a five day working week for 4 years 8 months and 20 days. Am I eligible for Gratuity payment on resignation? Regards, Indradeb
1st April 2008 From India, Bangalore
According to Payment of Gratuity Act, 1972 & Rules, an employee is eligible for getting gratuity after the completion of five years in a organization. On the other hands, if a worker have worked for 240 days a year is complete. It is not the matter whether a six working days in aweek or 5 working days in a week. In my opinion after the completion of period of five years you will be entitled for getting the benefit of gratuity, wether you work any more or not.
( G K Sharma )
2nd April 2008
You are not eligible for gratuity since you have not completed 5 years. The question of 240 days comes into picture for deciding whether an employee was on continuous service or not and as such a person who had worked for 240 days (above the ground or 190 days below the ground) in a year is deemed to have continuous service for that year.
The provisions relating to six days week and 190 days of work was provided after the ruling by the apex court in Lalappa Lingappa Vs Laxmi Vishnu Texiles Mills, Sholapur, to safeguard the interests of those employees who would be denied gratuity for want of minimum days (240) in between the years. Here also completion of 5 years is mandatory. Once eligible for gratuity, if in any year one has not worked for 240 days, that year can be counted as continuous provided he was working for at least six days in a week and had worked at least for 190 days in the preceeding year.
Regards,
Madhu.T.K
3rd April 2008 From India, Kannur
Dear,
The Gratuity is only Payable after 5 years on the latest Amount of Basic and DA.
You have to do the continuos service for that i.e. without any absentessm but you can take your Holidays.
Hope this information will help u more.
Regards
Ranjeet
(Jeeni)
2nd May 2008 From India, New Delhi
No, You should have to complete Five years service, which must be Continious for the eligibility of Gratuity. Working Days are dosn't matter for the eligibility, even there is '5 days week'. But for continious service 240 working days should be counted for every completed year of service.
In your case, if you will be releived off after more than 3 months then you could have the right for Gratuity. which can be payable for 5 years of service.
Atul S. Malve
Pune
2nd May 2008 From India, Sholapur
Dear Inderdeb,
I have gone through your queries, As per Gratutity Act, You are not completed 5 Yrs. so you are not applicable for Gratutity. For Gratutity, You should be worked for Five yrs. then you are entitled for that.
6th May 2008 From India, Lucknow
To: Mr.Madhu T.K.Sir,I face a case regarding gratuity in my company.One employee left his on completion of his service period for 4 years 9 months.As per order of Kerol Highcourt (the paper is not with me) any body is eligible for gratuity after completion for 4 years 8months .Is is right ? Please help me in this matter.Regards,Swarnali Banerjee
30th June 2008 From India, Madras
entitlement of gratuity is only after complition of 5 year continuas service and 240 days is the minimum working condition per year to establish the contineous service of fi ve years
30th June 2008 From India, Chandigarh
Hi,
Gratuity is applicable after completion of 5 year but in last year i.e. five year must complete 240 days then employee is elegible for the gratuity. after that below six month not count any day and completed six month then count full year suppose any employee worked 5 year 6.2 month then count 6 year and worked 5 year 5.9 month then only count 5 year.
T&R
Manoj Kumar

6th July 2008 From India, Delhi
Five years of service is mandatory for an employee to be eligible for gratuity under the Act. The rule about counting part of the year's service etc. for eligibility of payment are relevant only for calculation of the amount payable, when the employee has not worked during all the weeks of the year.
8th July 2008 From India, Mumbai
Hi, For gratuity 240 days to b completed in the last fifth year, i.e. if any employee has worked 4 year 240 days in organisation then the are entitled for the avaling Gratuity.
29th October 2008 From India, Delhi
I have a unique case. Joining Date: 22nd May 2004 Planned Last Working Day: 8th May 2009 In this case is the person eligible for receiving gratuity
21st April 2009
Dear
According to the strict preposition of the Payment of Gratuity Act, 1972 ,you are also sailing in the same boat. We have heard that one of the Hon'ble H C have given a judgement to the effect that if any employee works for 240 days & above during the fifth year then that employee will also become eligible for receiving gratuity amount but without going through that judgement no one can advised you to file a claim case before the Controlling Authority under the Payment of Gratuity Act,1972. Due to this hearsay we are facing these types of expectations in the field.

Regards,


Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

21st April 2009 From India, Delhi
Sir, I am also having same problem as one of our employee has worked for 4 Yrs. 09 Months and 20 days in our organisation. Regards, Kuldeep Kaushik 09896991465
3rd November 2009 From India, Delhi
DearKuldeep,
Strictly according to the P G Act, 1972 the employee is not entitled to gratuity payment as he have not completed five years of service but the Hon’ble Madras HC in the case of Mettur Beard Sell Ltd Versus RLC has decided the same type of issue. It was held that any employee who completes 240 days of service in a year in the 5th year will be deemed to have continued in service for one year as stipulated by sec. 2A of the Payment of Gratuity Act. It was held that an employee who has put in his services for 10 months and 18 days for the 5 year subsequent to first 4 years should be deemed to have completed, continued service of 5 years and is entitled for gratuity. Therefore go through the judgement & discuss the matter with your management & take decision accordingly at your level.1998 LLR 1072 Mad H.C.


Regards,
R.N.Khola






3rd November 2009 From India, Delhi
Dear Ishmeet , If this Act is applicable to your unit then you are eligible to have gratuity payment considering service as 6 years. R.N.Khola
5th November 2009 From India, Delhi
Hi, I would like to ask the minimum years or days where an employee eligible for Gratuity. I have done 4 years, 10 months and 15 days. Am I eligible for gratuity? Some review says 4yrs 8 month and 20 days, some review says days 240 days after 4 yrs. Do we have any document which support. I have spoken with company HR / Finance, they are saying I am not eligible although I have completed 4 yrs 10 month and 15 days. Please help urgently
6th September 2010 From United Kingdom, Saint Helens
Dear Member,
Then go through judgement of hon'ble Madras HC & then decide whether you want to file a claim case for payment of gratuity before the Authority Under the PG Act of your area. You can have the copy of this judgement in similar topics appearing on the right side of this thread itself.
Regards,
R.N.Khola




6th September 2010 From India, Delhi
Yes you are elegible for gratiuty for your reference pl study madras high court decision on this issue. I also attach file for your ref. Thx & regards tarun arora
13th September 2010 From India, Chandigarh

Attached Files
Membership is required for download. Create An Account First
File Type: pdf MADRAS HIGH COURT.pdf (1.55 MB, 729 views)

I am working for a Private Firm and will be completing 4 years 10 months. I come across various people telling me that serving 5 years is mandatory as per Gratuity Act and any deviation needs to be settled only through court as there are citings of judgement stating 240 days (8 months) in the 5th year is eligible for Gratuity.. Is this true?? or is there any other way to get my Gratuity for short of 2 months..
3rd August 2012 From India, Mumbai
Sorry All
Indradeb applicable for Gratuity. first i tell u one think how many days we will consider as an one year 240 days right, so in this case his complete 4 years 280 days that means he is eligible for gratuity.
Example : my previous company history I worked 4 years 11 month that means i am not eligible for gratuity ? no i am eligible for gratuity and i got the gratuity amount last year.
and i have one judgement copy
4th August 2012 From India, Kolkata
Dear All

This has become a classic question amongst all fraternity of people.

Q. What is the eligibility for Gratuity?

A) Continuous service of not less than five years

Q. What is continuous service:

A. As per section 2A of gratuity act continuous service means the following:

Continuous service means period of uninterrupted service which includes:



1) Employee's all days of physical presence (i.e when he has attended work/duty)

2) Absence due to sickness

3) Absence due to accident

4) Absence from duties even after exhaustion of all leave (i.e leave without pay with

the approval from management; such absence should not be unauthorised i.e on

undisciplinary grounds like absence without any intimation, abandonment of duties

etc)

5) absence due to lay-offs (i.e when company lays off employees for their own

reasons)

6) absence due to authorised strikes or lock outs

7) absence due to cesation of work not due to any fault of employee

Q. How many days makes one 01 year of continuous service?

A. Continuous service for a period of one year (12 months) means:



a) 190 days for employee's stationed below the ground like mines or

b) 190 days for establishment which work less than 06 days in a week

c) 240 days for all other cases (i.e for all establishments working 06 days a week &

above the ground)

B. Continuous service for a period of six months means:

a) 95 days for employee's stationed below the ground like mines or

b) 95 days for establishment which work less than 06 days in a week

c) 120 days for all other cases (i.e for all establishments working 06 days a week &

above the ground)

C. Continuous service for employees in seasonal employment means 75% of days worked

on which the establishment was in operation/working (be it for calculating 01 year of

continuous service or 06 months of continuous service, it will be seen whether

employee has worked 75% of total working days of the establishment)

Therefore please check the following:

1. Whether you work below or above the ground

2. Your establishment is 06 days a week or less than 06 days

Then as per your total years of service, calculate for each completed 12 months the eligibility for continuous service. It should be five years of continuous service & NOW dont get confused about the meaning of continuous service:)
4th August 2012 From India, Mumbai
Dear All, Five years,"contineous Service", refer the definition of "Contineous Service", you all will found answer whether he will eligible or not ?
7th August 2012 From India, Mumbai
Sec 2A ( continuous service ) under payment of Gratuity

For the purposes of this Act,-

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [* * *] treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act ;

(2) where an employee (not being, an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-

(i) one hundred and ninety days, 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 ; and

(ii) two hundred and forty days, in any other case ;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, 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 ; and

(ii) one hundred and twenty days, in any other case ;

Explanation.- For the purposes of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which-

(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 ( 14 of 1947), or under any other law applicable to the establishment ;

(ii) he has been on leave with full wages, earned in the previous year ;

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment ; and

(iv) in the case of a female, she has been on maternity leave ; so, however, that the total period of such maternity leave does not exceed twelve weeks.

(3) where an employee, employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
8th August 2012 From India, Kolkata
hi to all my frends here As i understood Gratuity is due after competing continous five year of job May I know about gratuity rules for construction industry all over India. Am I right
23rd February 2015 From India, Noida
iam working 15 years for pvt ltd company i want service graduaity detail no p.f only salary 9600 please send me
20th May 2015
Eligibility for Gratuity
1)Continous service / uninterrupted service for 5 yrs.
2) 240 working should be present in a year.
3) In case of continuous service for a period 5 yrs but not completed 240 days in any year , employee is eligible for payment of Gratuity for 4 yrs not for 5 yrs.
Hope this brief will sort out the all gratuity related discussed issues.
29th August 2015 From India, Pune
Dear Sandeep Singh, Doubtlessly, you are eligible for gratuity, as your service is more than the minimum prescribed qualifying service of 4 years and 240 days.
13th March 2016 From India, Delhi
I Joined my organization on 4 October 2011.So Can anyone please let me know that Am i eligible for Gratuity now or not??Please revert.
29th June 2016 From India, Gurgaon
Yes you are eligible for gratuity since you are going to complete 4 years and 8 months on 4 th October 2016
Quote : according to the 2012 supreme court judgement a person who has completed 4 years and 6 months of service is eligible for gratuity
29th June 2016 From India, Hyderabad
Dear Team,
Thanks for your valuable information, I am looking for support on knowing that if a employee worked for 5 years and put paper on the same month for interest to resign and he is in notice period ,whether he is eligible for Gratuity?
-Priya
4th July 2016 From India, Bangalore
Hello Priya As per your information given, the person is eligible for Gratuity and it has to be shown in the F&F settlement.
5th July 2016 From India, Hyderabad
I am a bit confused as I am a Fresher. 4 Years 240 days makes a person eligible for gratuity, but only when he completes 5 years he can claim for it??? Am I right?? Please guide me
7th July 2016 From India, Bengaluru
Hi Priya, You are misinformed. If employee has worked for 240 days in the 5th year, the year is treated as completed for the purpose of gratuity.
8th July 2016 From India, Delhi
This topic came up for discussion in 2008. Hence there could be different interpretations on this. In a recent judgement of Kerala High Court which followed the Madras High Court verdict in Mettur Beardsel's case, it has been held that working of 240 days in the fifth year would make an employee eligible for gratuity. Following these verdicts no change has been made to Payment of Gratuity Act by means of an amendment. Therefore, barring Kerala and Tamil Nadu, if any employer or any Controlling Authority under the Payment of Gratuity Act, viz, the Labour Officer, refuses the claim for gratuity saying that as per law, an employee who has put in 5 years continuous service would only be entitled to gratuity and the interpretations of High Court will not bind in individual cases, the employee will have to move to court. If your court interprets that 240 days is the days work to be put in over a period of 12 months in order to make the service continuous and uninterrupted, and the Act has not made it clear that a person who has not completed 5 years of service from the date of joining but has worked for 240 days in each year including the fifth year in which the gratuity has been claimed as due will not be eligible for gratuity, what will be the next step?

It is true that legislations are meant for the beneficiaries. Therefore, if the employer is ready to give gratuity to an employee who has not worked for 5 years, it is well and good. Similarly, the Controlling Authorities may also follow the same interpretations about gratuity qualifying service. But you cannot say that 240 days in the fifth year will qualify for gratuity until and unless the Act is so amended.

Madhu.T.K
8th July 2016 From India, Kannur
Hi Madhu,

Your post is quite confusing and provides the interpretation, as if the law does not provide for 240 days of the year to be treated as a completed year for the purpose.

The definition, as in section 2(c) states:

"(c) "continuous service" means uninterrupted service and includes service which is interrupted by sickness, accident, leave, layoff, strike or a lock-out or cessation of work not due to any fault of the employee concerned, whether such interrupted or interrupted service was rendered before or after the commencement of this Act."

"Explanation I.- In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than-"

"(i) 190 days, if employed below the ground in a mine, or"

"(ii) 240 days, in any other case, except when he is employed in a seasonal establishment."

THE DEFINITION IS QUITE CLEAR.

However, can you please make it clear, which type of amendment you want for which part of the definition, as per your interpretation?
9th July 2016 From India, Delhi
I meant to say that a provisio to be added to section 4(1) of the Payment of Gratuity Act whereby to clarify that 240 or 190 days, as the case may be, shall constitute eligible service in the fifth year. At present it is said that gratuity shall be payable to an employee after he has rendered continuous service of NOT LESS THAN FIVE YEARS. This section makes it obligatory that in order to be ELIGIBLE for gratuity one should have worked for 5 years. The same interpretation was given by High Court of AP in P Raghavalu & Sons Vs Addl. Labour Court. Though Madras High Court and Kerala High Court have produced superseding judgements with a different interpretations and rejecting the judgement of Hyderabad High Court saying that it was basically based on AP Shops and Commercial Establishments Act and not merely on Payment of Gratuity Act, we cannot rule out the significance of this judgement unless we have a clarification as to the eligibility of gratuity to an employee who has not rendered five years of service.

Madhu.T.K
9th July 2016 From India, Kannur
Hi Madhu,
Interpretations differ from case to case depending upon the smartness or ignorance/laziness of the lawyers fighting the case, as judgment of the judges tilt towards the submissions of the lawyers who can convince the judge an any case. You can very well understand that point if contradoctory judgments exist in law. Otherwise, the provision of section is very much clear on the definition of 5 years of service. Provisos every here and there is quite unwarranted, when the section of law makes cear about the provision.
10th July 2016 From India, Delhi
Ban -SWB yes you are right ,,,,Hydrabad high court also gave order on the little same case,
17th July 2016 From India, Kolhapur
Hello myself karan singh my joining date is 19-april-2011 and i still working in organization.
i have completed 5 years 4 month.
so will you please confirm me m i eligible to gratuity.
someone said to me you are completed 5 years 6 month than you are eligible.
so please confirm me the status of gratuity.
do the needfull
6th August 2016 From India, Delhi
Dear Karan Singh,
You could have understood very well from the long discussions held in original query that you are eligibible for gratuity without any doubt. You have been wrongly informed by some one about completion of 5 years & 6 months of service.
7th August 2016 From India, Delhi
Hi All, I have completed 4 years and 304 Days (15 July 2012 to Till date). Am I eligible for Gratuity payment on resignation?
11th May 2017 From India, Bangalore
sir/madam,
if employee has completed his service five year in the company on register, starting two year continue present & further next 3 year continues absent or ESIC leave. he will be eligible for gratuity.
maan
28th August 2017 From India , New Delhi
I was joined one organisation dated on 02.01.2012, that time they are giving offer letter only then March 1st 2012 I got appointment letter that day only mention as a date of joining , my last working day 13th Nov 2016, i was resigned properly also can i eligible to apply for gratuity?
14th February 2018 From India, Chennai
Dear Sir / Madam,
I have work in a company 4 years 9 month, do I eligible for gratuity or not.
if company denine for given gratuity then what will be way to get gratuity.
6th June 2018 From India
if a worker not completed 240 days in all 5 years, then is he entitled to Payment of gratuity.
6th June 2018 From India, Bhogpur
240 days is inclusive of all paid holidays and paid leaves and if an employee has not done 240 days' working he will qualify for gratuity.
7th June 2018 From India, Kannur
Dear All's
As per section 4 of gratuity act is clear mention, service is not less then rendering continues five year service. so that no any eligible for gratuity less than five years.
7th June 2018 From India, Pune
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™