Madras High Court Ruling: Can You Claim Gratuity with 4 Years and 240 Days of Service?

Dear Friends,

I am sharing with you an attachment of a Madras High Court Judgment under the Payment of Gratuity Act. In this judgment, the eligibility of an employee to claim gratuity under the Payment of Gratuity Act has been clarified by interpreting continuous service as 4 years and 240 days, the minimum eligibility criteria for claiming gratuity.

Hi Satyam,

Thank you very much for sharing valuable information. I appreciate it. I am facing a similar problem and with your post, I believe I can now resolve it.

Thanks a lot,
Narender Singh

Hi All,

I would like to know about the latest updates on the Payment of Gratuity. I understood from this judgement that 4 years of continuous service and 10 months plus 18 days in the fifth year are considered for an employee to be eligible for gratuity. Is an employee eligible if he has completed 4 years of continuous service and 258 days in the fifth year?

Please help with this or provide any information on the latest amendments in the act.

Many thanks in advance.

If he has completed 4 years of continuous service and 258 days, then he is eligible for gratuity. In the judgment attached to this thread, it was held that 4 years and 240 days will be the minimum eligibility criteria for claiming gratuity.

Hi Satyam,

Thank you for posting valuable information. However, I would appreciate your comments on my concerns.

This is a case where I am unsure about the basis on which the conclusion was made. I believe that this policy could benefit those who are asked to leave the company by management but not those who choose to leave on their own. In my opinion, unless an amendment is passed stating that completion of 4 years and 240 days is an eligibility criterion, this policy cannot be implemented in practice.

I welcome expert thoughts.

Sughumar R.K.

A concern employed a person on a part-time basis or contract basis to maintain its accounts. The person thus employed for accounting work receives remuneration on a monthly basis from this concern. He is a full-time employee of another concern. Can he be considered an employee under the Payment of Gratuity Act and entitled to gratuity? Can he be considered an employee to be included in the count limit of ten employees so that the Payment of Gratuity Act becomes applicable to others?

Clarifying Employee Status Under the Payment of Gratuity Act

Whether a car driver or the proprietor of a proprietary concern can be considered an employee under the Payment of Gratuity Act is a question that needs to be clarified. Similarly, if an individual only comes in to clean the office in the morning and does not perform any other tasks, can they be classified as an employee of that concern under the Payment of Gratuity Act?

It is essential to understand the specific criteria and definitions outlined in the Payment of Gratuity Act to determine the eligibility of individuals in different roles within an organization.

Dear KP, The Payment of Gratuity Act states 4 years and 240 days.

Regards,
Umesh Maurya (Advocate) Labour Laws

Dear All, I worked as an account manager in a private limited company from 3-5-2016 to 31-1-2021, which amounts to 4 years and 9 months. After leaving the job, they have denied my gratuity payment. Please let me know if I am eligible for it or not.