Is notice period included in calculating 5 years eligibility period for gratuity?

Dear Sreelatha, I regret to say that I am not well versed in Income Tax matters. Even on matters connected to Labour Laws and Labour relations, I am still a student. My advices are based on my own experiences and situations I faced in my past employment - that too in Kerala where the employees are more informed of the latest amendments in Labour Acts than the Managers! Well, I didn't see your post on IT. I shall locate it and try to do some thing. For any matters for which you feel I am confident, you may mail me or contact me. My mail id and telephone no. are: [Login to view] 09847583239 Regards, Madhu.T.K

Hai Gratuity eligibility is 5 years continous service. If you serve the one month notice period till Feb 28th, i.e. you will have to work till February 28, 2009. So they have to calculate the working days till 28.02.2009. You can submit your resignation letter on 31.01.2009 and ask them to relieve on 28.02.2009 (one month notice period). You will be eligible for Gratuity. MANOKAVIN

Dear Seniors, AN EMPLOYEE WHO HAS DIED BUT COMPLETED ONLY 3 YEARS OF SERVICE. IS HE ELIGIBLE FOR GRATUITY AND CALCULATION SHOULD BE DONE CONSIDERING 3 YEARS OR 5 YEARS. AND IN CALCULATING GRATUITY BASIC + DA SHOULD BE TAKEN OR ONLY BASIC. Regards, shreya

Dear All Gratuity Act does not limit the maximum amount that a person can receive in the form of gratuity. Payment of Gratuity Act 1972 Sec. 4 (5). It says that employer can cap his liability to a maximum of Rs. 3.5 lakh per employee but nothing in the law prohibits him to provide better benefit than the one mentioned. Though the Income Tax Act says that as long as the Gratuity amount is not exceeding 8.33% of employees annual salary, its not taxable even if it crosses 3.5 lakh limit (Ref. Income Tax Act RR 98 to 111) There are companies who pay gratuity without cap i.e. an employee can accumulate gratuity as long as he work, even if he crosses 3.5 lakh limit.v

You are entitled to count the period of service of one month under notice period for claiming gratuity. Period of service is totally different from the period of notice. S. Krishnamoorthy

Dear Anuj, The gratuity act states that any employee who has served any organisation for 05 years is eleigible for Gratuity under the act. Although it is also specified that if any employee has served for 04 years and 240 days, he/she is eligible for getting gratuity payment. your notice period shall become a part of yor tenure while computing your gratuity payment. 05 years shall be counted while taking into account your Date of joining and the last day of your working in the organisation. Thanks Amit Anand Gera

The completed years of 5 years service includes one month notice period.Therefore you will become eligible to receive gratuity amount.

Hi, As per the Gratuity act, you will be eligible for Gratuity even if u submit ur papaers in jan and work for one month notice.... But you dont know whether your company allows you to serve the notice period or not. In some cases even it cna relieve you with immediate effect by paying in lieu of notice period to u. so not to take risk with these companies...better submit after feb ..... Neelima

Hi, Employee has every right to withdraw the resignation before its effectiveness despites its acceptance by the competent authority, as per the settled principles of law. Therefore, resignation can be submitted before completion of 5 years of service but effectiveness after 5 years. Judgment of Madra High Court takes care of 240 working days in the 5th year as completed year of service. regards, kadalirao

One of our employee died due to health related problem. He is eligible for gratuity, if yes what is the procedure to claiming gratuity.
His doj : 11.05.2017
Death on : 22.07.2017