Gratuity Eligibility - PDF Download - Gratuity Act

Dear
Of course it is fine.
With Regards,
R.N.Khola

Dear,first of all for employee is eligible for the gratuity only after completion of the five year.

I differ with the remarks given by Sathish on the eligibility part. 4 years & 240 days can not be the eligibility criteria for the gratuity. It from the date of joining to the completion of 5 years.
thanks,
Shreedhar Kantharia
Re: Gratuity eligibility
Dear Friend,
Not. Atleast he should have completed 4 years + 240 (8 months) to become eligible for gratuity. In case of death such service is not compulsory.
sathish

Normally in any offer of appointment, however small the organisation may be, they will men tion that PF & Gratuity would be as per rules. As the eligibility of gratuity starts after completion of 5 years service, question does not araise to add in the ctc at the time of initial appointment. As the gratuity will be paid on Basic Pay + DA , some of the companies arrive notional Basic + DA at the time of initial appointment it self, so that no ambiguity is faced while arriving gratuity amount at the time of payment at a later date.
The rule of taking the service of 6 months or above as completed year of service for gratuity purpose will be applicable only after completion of first 5years service but not to fill the gap of 5 years. Perhaps, your employer took this wild decision of sending you out, only to avoid gratuity.

Hi Friend,
Refer the attached case law.
240 days also consider for one year completed.
Regards,
Shyam Pandirkar
9320023005/9870166192

1) Give example of gratuity calculation.
2) If company has given appointment letter on contract basis for 7 years then that time gratuity apply or not.

Hi,
He is eligible for gratuity if he has spend 4 yrs and 240 days in continuous employment.However.If the company have framed any Gratuity payment Rules then in that case those should not be less favourable to that provided in the Payment of Gratuity Act, 1972 if this Act is applicable to that unit and he will be governed by those rules.
Hope this will answer your query, if you wants more details than pls. put forward your query .
Thanks & Regards
Chander Mohan Mohla

The following points should be of interest on this discussion :

• As per Sec 2 (e) of the Payment of Gratuity Act 1972, an employee becomes eligible for gratuity when he completes 5 years of service.
  
• However, there has been certain case laws, wherein for the purpose of determining the completion of 5th year (wherein the ex-employee is to be paid gratuity), Courts have ruled that completion of 240 days of duty in the 5th year can be taken as completion of 5 years for the purpose of giving gratuity.
  
• This is a benevolent provision to prevent denial of gratuity on technical grounds that an employee has not completed 5 calendar/full years of service.
  
• Any organization is free to award more beneficial terms in respect of any provisions set out in Labour Acts. As such, it is perfectly alright (and indeed, commendable) if an organization wants to give gratuity even prior to completion of 5 years.
  
• In case of accident or death, gratuity can be paid irrespective of numbers of years completed.

Hope the above, helps in appreciating the legal provisions for gratuity.
Warm regards.

Dear friend,
He/she should have completed the continous service of atlease 4 years+240 days.
sathish

Hi,
To be eligible for gratuity, one has to complete 5 years of service. All units in India,irrespective of foreign or local, will have to abide by the rule in India. Any company can formulate their own gratuity rules, provided, the provisions therein should be more favourable/benefitial to the employees.
A reference to the Gratuity Act will clarify the matter.
Regards.
Pavithran.