Gratuity Eligibility: Does Serving Notice Period Count Towards 5-Year Requirement?

Hi, I need help with two questions.

1. If an employee resigns just before completing 5 years (say 4 years and 11 months) and is serving the notice period when 5 years are completed, is he eligible for gratuity?

2. In similar circumstances, if the company pays him a basic salary but asks him not to serve the notice period, in effect, when he resigns after 4 years and 11 months, the company pays him 3 months' notice pay and asks him to hand over... What is the eligibility for gratuity?

Yes, the person is eligible for gratuity after the completion of the notice period. According to the new policy, any person who completes 4 years and 240 days of service in the organization is also eligible to receive gratuity benefits for layoff, leave with wages, sick leave, etc.

I hope this is clear.

Regards,
Leela

Gratuity Eligibility After Resignation

After resignation, the employee is ready to serve the notice period, and 4 years and 240 days will be completed. However, the employer doesn't allow the employee to serve after resignation, so the employee is not able to fulfill the above-mentioned condition. In that case, does the employee still get gratuity?

Regards,
Gold

As per my knowledge, the act states that an individual who completes 5 calendar years of service is only eligible to receive gratuity benefits. However, you mention that as per the new policy, any person who completes 4 years and 240 days of service in the organization is also eligible to receive gratuity benefits in cases of layoff, leave with wages, sick leave, etc.

If you have any proof or evidence to support this claim, please post the same or provide a reference.

Regards,
Venkat

Serving the notice period is also a part of service. It will be considered for gratuity calculation.

Dear all,

For this point, you can take reference to the Madras High Court Judgment on Payment of Gratuity. Please find the attachment.

For any further clarification, you are always welcome to contact me at my email: prasanta061782@gmail.com.

Regards,
Prasanta Ray

YES, he is eligible to receive Gratuity as long as he has worked for a continuous period of 240 days in each of the five years. Please understand that if he is serving his Notice Period, that will also have to be taken into consideration, after all, he is working on all of those days.

Vasant Nair

I need the gratuity document in full so that it is easy for me to see and understand the procedure. Can anyone help me in obtaining the document?

Hi, Mr. Prasanta Ray,

The judgment copy is okay. Is there any amendment in the Payment of Gratuity Act, 1972 with reference to this judgment? Is the judgment applicable to all states?

Regards,
Venkat.

Dear All,

In my understanding, the employee's gratuity period will be calculated until the closing hours of his/her last working day.

Regards,
Kapil Kotwal

Dear sir,

Please tell me, if a person joined on the 27th of August 2010 and left the job on the 30th of May 2015, is he eligible for gratuity? He has completed 4 years, 9 months, and 3 days.

Please reply.

Gratuity eligibility - I joined Aircel on January 2, 2015, but the company asked me to leave with August 16, 2019, being the last date. I completed 4 years, 7 months, and 15 days. However, due to insolvency, they gave me an exit letter. Am I eligible for gratuity?

I have completed 4 years and 7 months, and I am planning to resign from my current job in my current company. The notice period is 2 months. Will I get my gratuity? Will they consider weekends and my paid leaves also for gratuity - 4 years 240 days?

You have already completed 4 years and 7 months of service in your company. Now, if you are serving notice of resignation today, you shall be relieved from the company on 18/10/20. By that date, you shall be completing 4 years and 9 months, and you are fully entitled to receive payment of gratuity. The calculation of 240 working days is inclusive of weekly off, your paid leaves, and company-declared holidays, etc.