Gratuity Eligibility Dilemma: Is 4 Years and 240 Days Enough for a Claim?

Dear All, I am seeking your input regarding a case where an employee has completed 4 years and 300 days in the current organization. According to the rules of the Payment of Gratuity Act, an employee must complete 5 years to be eligible for gratuity. However, the employee is claiming eligibility after completing 4 years and 240 days. I would appreciate hearing your thoughts on this matter.

Regards,
Vivek

I am sending you the file of updates done by the government on gratuity for employees.

Dear SGVivek,

For gratuity claim completion, 240 days of actual work have been accepted by the courts. Hence, even though the employee has completed 4 years and 300 days of actual work, he/she will be eligible to claim the gratuity as a lawful right.

Ravindra Chaubal

Hi Ravindra,

This is very valid information. Is there any notification to this effect saying 240 days can be considered for a claim? Please revert.

Regards,
Pradeepan

He is entitled to the Gratuity. The Supreme Court has ruled that if a person completes 240 days of work in the fifth year, he is entitled.

Lalit M. Sharma

I agree with Pradeepan. This information is very important since some of our staff will fall under the category of working for less than 5 years. Is there any notification stating that 240 days can be considered for a claim? Please respond with support for this claim. URGENT PLEASE!!

There is a Madras High Court judgment on this issue. I hope it will help all of you. Please find the attachment.

Thank you,
Tarun Arora

Dear Ravi,

Thank you for your valuable suggestion. Do you have a scanned copy of a notification that confirms or any other supporting documents that will assure our management? I will be very thankful to you if you are able to provide it to me.

Thanks,
Warm Regards,
Bhupesh

Can you provide proof of this Supreme Court judgment? It would be beneficial for everyone. The rule of gratuity requiring a minimum of 5 years of service (365x5 days) would then have no significance.

He is eligible as in the Act it is mentioned as "number of years completed or part thereof," which means the number of years completed plus any excess of 6 months will be calculated as 1 year. In the present case, he has completed more than 6 months in addition to 4 years, which is deemed to be 5 years as stipulated in the Act. Hence, he is eligible.

Regards,
Venkataraman

If the employee had served for 300 continuous days in the year, he is eligible for Gratuity.

Hi,

Please view the attached document. I will get the doubts cleared.

Jay