Am I Eligible for Gratuity After 4 Years and 244 Days? Seeking Clarity and Legal Insights

Hi Everyone,

Please guide me if I am eligible to get gratuity or not. I had joined a company on 15th December 2003, and my last day in the company was on 14th August 2008. This means I had completed 4 years and 244 days of service with them.

I am hearing a lot of different views on the eligibility of gratuity payment but didn't get any one concrete answer to it. Can you all please help me find a valid answer to it? In case I am eligible to get gratuity, please share the related case law or judgment also in this context so that I can take it forward with my previous employer.

Thanks a lot in advance for all your help.

Regards,
Shikha

Dear Shikha,

At least 5 years of continuous service with the same employer would be necessary to avail the benefit of gratuity.

Thank you.

Dear friends,

I agree that there are conflicting views and I also want to know the exact legal position. It is understood that the Madras High Court, in the case of Mettur Beardsell Ltd, Madras v Regional Labour Commissioner (central), Madras LLR 1072 (Mad HC), has held that an employee who has served for 10 months in the fifth year following the fourth year should be deemed to have completed 5 years and is entitled to receive gratuity. However, I do not have a copy of the judgment. If anyone has a copy, kindly share.

The Supreme Court, in the case of Surendra Kumar Verma v Central Govt. Industrial Tribunal (1980 (4) SCC 433), has also held that an employee who has completed 4 years, 10 months, and 18 days would be considered to have completed 5 years for the purpose of the Industrial Disputes Act.

Regards,

Hi,

As per The Payment of Gratuity Act, an employee is eligible for gratuity if they have completed 5 years of continuous service in an organization, wherein continuous service stands for 240 days in a year. In your case, you mentioned that you have completed 4 years and 244 days with the company. However, based on my understanding of your situation, you were not actually present for 240 days, but this is the period for which you were working with this company. Therefore, I doubt that you are eligible for Gratuity according to the act.

Hi all,

I am working in a public sector company on a contract basis since 06 June 2008. Can anybody tell me if our company falls under the Gratuity Act or not? Are there any specific criteria for companies that come under this act? Please provide some information soon.