Gratuity Eligibility After Forced Leave: Can My Friend Claim It After 4 Years and 7 Months?

elok
One of my friends used to work for Satyam and completed 4 years and 7 months. He was put on Long Leave with only Basic Pay, which forced him to quit the job without completing a tenure of 5 years. Under such circumstances, will he be eligible for Gratuity as he wanted to continue.
bunu_roopa
There is a Supreme Court judgment on this matter. If an employee works continuously for 4 years and for 240 days in the 5th year, they are entitled to gratuity. If your friend has completed 240 days in the 5th year, they would be entitled to it.

Regards,

S K Biswal
Prompt Management Solutions
R.N.Khola
Dear,

If you have any judgment, please quote the same for the information of the members.

elok
As we are all aware of the Satyam scam, the concerned person has completed 4 years and 210 days of continuous service with a lot of appreciation for their work. It was unfortunate that they were put on long leave with basic pay due to prevailing circumstances at Satyam. They would have continued their services but not at the cost of basic pay; hence, they had to resign from the job for better prospects. Can they be eligible under such circumstances?
R.N.Khola
Dear Sir,

No, he is not eligible for gratuity payment.

With Regards,
R.N.Khola

eirvalsa
He is eligible for Gratuity. There is no doubt about this. He can prefer a claim, and if the company refuses to pay, he can approach the Deputy Commissioner of Labour who has jurisdiction over his last place of working. There are a few judgments which say that if a person has worked for 240 days in the preceding 12 months, the period will be reckoned. If he has put in a minimum of 240 days in the fifth year of his service, he can make a strong claim sustainable in law.
R.N.Khola
Dear EIRVALSA,

He himself has stated that the concerned person has not completed 240 days in the fifth year.

With Regards,
R.N.Khola
elok
Concerned person has not completed 240 days in the fifth year and is not eligible. Is there any clause by which he can fight for, as he would have continued service, but the company has given him a notice of 3 months to look for another job. During these 3 months, he will be only eligible for basic pay. Under such circumstances, can he fight for being, despite a good service record, missing gratuity by 30 days is unfair just because of the company scam and policy at the last moment.
elok
All I wanted to ask is one thing: 4 years and 240 days is the eligibility for any individual. But what if you are shortfall of just 30 days against your will and wish? The concerned person was aware of the fact and wanted to continue service by another month. During this period, Satyam came up with a new policy under which the employee will be given only basic pay and a time period of 3 months to look for an alternative job. Now, under such circumstances, priority shifts when your job is at risk because if he waits for gratuity eligibility, he will lose the job. Can he fight for Gratuity? If yes, please let me know how to proceed.
elok
Before putting down the papers, the concerned person knew that he was missing out on the gratuity by just 30 days. However, he had no choice as the company had given him a three-month period to look for an alternative job. The company was in bad shape, even though his tenure and performance were excellent, and he was a star performer.
sathish.hr1975
Dear friend,

Completing the continuous service of 4 years and 8 months can be considered as the completion of 5 years.

Sathish

A.K.GAUTAM
Dear Elok,

As per the judgment of the Madras High Court, an employee is eligible for gratuity if he has completed 240 days in the fifth year.

Regards, A.K. Gautam
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mahesh.hr22
Seeking Advice on Gratuity Issue

I worked with one organization for 4 years and 294 days and resigned from the job, but the company is not giving gratuity. I have approached company officials several times and communicated with them about the decision of the Madras High Court, both orally and in writing, but I have still not received my gratuity amount. I have submitted a written humble request letter for gratuity, but I have still not received the gratuity amount.

Please suggest what should be done to obtain the gratuity amount.

Thanks in anticipation.

Regards,
Mahesh
Abhinav S
Hi Mr. Khilaigi,

Are these 240 days referring to only business days, or is it equivalent to approximately 8 months? Also, if an employee has taken leave during these 240 days or if there was any public holiday, does it increase by that many number of days? One last question, does this 240 days include the notice period tenure of the employee as well?

Thanks,
Abhinav
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