Am I Eligible for Gratuity After 4 Years and 10 Months of Service? Seeking Advice

Dear Sir,

In my present organization, I have completed 4 years, 10 months, and 15 days (from 2.8.10 to 16.6.10) and I have resigned and been relieved now.

The eligibility for receiving Gratuity is 5 years. Since I have completed 4 years and 10 months, am I eligible to avail the same?

Regards,
Jayajith

Hi,

Gratuity is an amount given to employees by the employer when they leave the job after completing five years or a minimum of 240 days per year or after retirement. So, if you completed your 240 days a year, only then you can get the gratuity benefit.

For details, you can calculate your gratuity amount using the given formula. Gratuity is calculated as: Basic + DA divided by 26 * Number of years of service * 15.

Mayuri Jangam.

Dear Jayajith,

Yes, you are entitled to gratuity benefits. You have completed four years and ten months in the fifth year. As per the provisions of the Payment of Gratuity Act, 1972, you are entitled to receive gratuity benefits. You may refer to the Honorable Madras High Court Judgment (Honorable Judge Mr. SM Abdul Wahab. J) dated 12/06/1996, which ruled that an employee who has served for at least 240 days in the fifth year following the first four years should be deemed to have completed continuous service of five years and is eligible to claim gratuity.

Further, you have not clarified your date of joining and date of relieving in that particular organization.

Thanks,

Dear Sir,

My date of joining is 02-08-2005, and the date of leaving is 16-06-2010. During this period, there was no break other than privilege leaves taken.

Regards,
Jayajith

At the time of appointment, the company calculated gratuity in CTC. Now, the employee is going to resign from the job after 3.5 years. Is the employee eligible for gratuity? Please provide details.

Dear Mr. Rupesh123,

As the employee has not completed five years of continuous service, he is not entitled to gratuity under the Payment of Gratuity Act. If the appointment order issued to the employee at the time of his appointment prescribes a lesser period of service for entitlement to gratuity, then the employee will be eligible to receive gratuity if he had worked for that particular number of years. Otherwise, if the company has formulated gratuity rules which provide for the payment of gratuity for a fewer number of years of service, that is fewer than five years, then also the employee will be entitled to receive gratuity if he had worked for such years.

V. HARIKRISHNAN Joint Commissioner of Labour (Retired) Government of Tamilnadu Labour Law Consultant Chennai