Is My Employer Trying to Avoid Paying Gratuity by Releasing Me Early? What Should I Do?

Gratuity

I have been working in my current organization since 02-Mar-2005. Fifteen days ago, my employer accepted my 2-month notice of resignation. Now, he is planning to release me just before 1 or 2 days of my 5-year service term to avoid providing gratuity benefits.

Is gratuity solely based on the number of years of service, or are there any other clauses to avail it? Please help me.

Thanks,
Chanti

To avail the gratuity benefit, you have to complete the stipulated 5 years with the organization. In case you fall short, it can get withheld. Negotiate with your supervisor on your relieving. Of course, you need to work for 240 days every year.

Hi Chanti,

I am sorry to hear that you are resigning from the company, as you have mentioned that the company is not retrenching you. As an HR manager who has handled various Gratuity cases, I am confident that your HR team will not provide you with gratuity since you are not eligible for it as your service has not yet completed five years. Therefore, if you have not submitted your resignation, I suggest delaying it until you complete your five-year service period if you are planning to leave. Otherwise, you will not receive gratuity even if you decide to take the matter to the Labour court.

Best regards,

Ratikanta Rath
HR Manager

If you had served the company for at least 240 days continuously in the 5th year of your service, even if you are relieved half a day earlier, you are entitled to gratuity.

Hi,

In my opinion, and as per the law, gratuity is eligible only for employees who have completed exactly 5 years of service. This period is considered for gratuity calculation.

Thanks,
Ramki

You are eligible right now. Once you complete 4 and a half years, you are eligible. You can take up the issue legally if not paid. Before that, you can inform them and clarify the same with a legal person to avoid embarrassment.

As per my opinion, there is no lock-in period for entitlement of gratuity. After completion of four years and 240 days in the fifth year, you are eligible for gratuity. If your employer refuses to pay, then you should approach the Authority under the Gratuity Act.

Hi folks,

One judgment says that 4 years and 9 months are eligible for getting gratuity, so please check with a good lawyer.

K.N. Surendran
Coimbatore
98424 50847

Dear Friend,

There is no advantage to any organization if he wants to relieve you before the notice period. In such a situation, you can ask the HR to relieve you on the exact date.

To avail gratuity benefits, you have to complete 5 years. It's a statutory compliance. So, it's better if you complete your 5 years; you will get a pretty good amount, yaar.

Hi,

According to the Gratuity Act, those who complete a period of 5 years are eligible to receive gratuity.

Vairavan

Dear Friend,

You are entitled to get gratuity if you have worked for 240 days in the 5th year. On completion of 240 days, you are entitled to gratuity for that completed year of service, as clearly defined in the Gratuity Act. Please read the definition of a COMPLETED YEAR OF SERVICE.

Thank you,
Mahesh Pandey

There is a Supreme Court ruling for the same. Based on that, you currently stand eligible for your Gratuity.

Dear friend,

Don't be afraid. It is your employer's responsibility to award you gratuity as you have completed 4 years + 240 days. In the 5th year, the completion of 240 days can be considered as the completion of one year. In such disputes, all judgments have been awarded in favor of the employee. The incomplete remaining one month can't cease your gratuity period.

You don't need to beg your HR to extend the staying period until completion of 5 years. It is your right, friend.

Best,
Sathish

If the person has accrued 40 days of leave in their account at the time of resignation, will these days be considered as 240 days for gratuity calculation purposes?

Dear Member,

No, we are not to count the accumulated EL in actual working days. If the employee was on leave with wages earned in the previous year, then those days are to be considered as the number of actual working days for counting in 240 days actual working. (sec.2A)

Regards,
R.N.Khola

You are eligible for gratuity. Please check the attached document.

Don't worry, you will get the gratuity since you have completed 4 years and 8 months (240 days). Also, the labor court will support your claim in this matter.

Regards,
Anand

Refer to the Hyderabad High Court judgment - gratuity was paid for 4 years and 240 days. The Madras High Court also issued a similar judgment.