Am I Eligible for Gratuity After Maternity Leave? Seeking Clarity on HR Policy

Dear Friends,

I need your help in this regard.

I have been working in an IT company for the past 6.5 years. During this time, I took a maternity leave of 8 months. Out of these 8 months, 3 months were paid leaves, which were maternity benefits, and the remaining 5 months were approved leave.

Now, my HR is informing me that I am not eligible for Gratuity as per the policy. I am confused about this matter. Could you please confirm whether I am eligible for Gratuity benefits or not?

Please help me with this issue.

Warm regards,
Usha H.

Yes, you are eligible for gratuity. Gratuity is applicable to those who have completed five years.

Thanks & Regards,

Raghavendra HR Executive ITC Fortune Hotels

Dear Usha,

You are 100% entitled to gratuity as per the Payment of Gratuity Act 1972, which specifies that an employee should have completed 5 years for entitlement. Even if your service is more than 6.5 years, you will be paid 7 years of gratuity, or if it is less than 6.5 years, you will be paid 6 years of gratuity. You can also refer to the Payment of Gratuity Act 1972 for the bare act.

Regards,
Baba Naresh

Hi Ushajk75,

You are 100% eligible for gratuity. As rightly mentioned by Mr. B Naresh, the entitlement will be for 7 years of service. Though the Act provides for 5 years of continuous service for entitlement to gratuity, the Madras High Court, in a decision, had held that if someone works for 4 years and 240 days in the fifth year, he becomes entitled to gratuity.

You may speak to your HR accordingly. In case of refusal to pay, first serve them a notice, and in case of no payment, make an application to the designated authority.

Best,
Jai

Dear all,

You are 100% eligible for gratuity! Maternity leave is different, and gratuity is different. Please discuss with your HR.

KVR

Also note that a period of leave of absence on account of legitimate reasons like maternity, accidents, etc., shall not be taken into consideration while computing the 5 years of continuous service. The employer is justified in proportionately reducing the gratuity payable to the extent of the authorized period of absence.

Dr. Sureshkumar

I have just joined a public limited hotel group in Gujarat. My friend is saying that if your take-home salary is Rs. 25,000 and above per month, you are not eligible for PF. Is it right? Please advise.

Suresh

Dear,

Please refer to Section 2A of the Gratuity Act. Up to 12 weeks of maternity leave per child is included in the period of continuous service.

With Regards,

E-mail: rajanassociates@eth.net
Mobile: 9025792684

Hi Suresh,

Your salary has nothing to do with PF. If the company employs more than 10 people, the company should register itself for PF, and all employees are eligible for PF. As per the law, 12% should be deducted from your basic salary towards PF, and 12% of the basic should be contributed by the employer.

Regards, Tanu

Dear Ushaji,

You have posted your query regarding eligibility for Gratuity. As per section 2a of the Gratuity Act, you are eligible for maternity leave, which will be included in the service. Furthermore, the Madras High Court recently issued a judgment stating that an employee who has worked for 4 years and 240 days in the 5th year is eligible for gratuity.

I am forwarding the Madras High Court judgment in a PDF attachment file with this email. Additionally, you can file a simple petition with the Regional Labour Commissioner in your area.

Regards,
Ravi.V
9769987407

Can gratuity payable to an employee be retained if the employee is involved in a vigilance case? In our government organization, a retired employee was not given the employer's contribution of PF and the gratuity amount since he was involved in a vigilance case.

Dear Member,

You have to go through the applicable central/state Civil Service Rules for your query.

With Regards,
R.N.Khola

Dear Mr. Suresh,

The present maximum wage/salary for PF eligibility is Rs 6500/- per month. If your pay is more than this limit, you can opt for PF, and management will allow you 12% of Rs 6500/- (Rs 780 per month), and the same will be remitted to various heads under the scheme.

If the management is willing to contribute without limit as specified above, it can be remitted to the scheme with certain formalities like a joint application and approval from PF authorities, etc.

Thank you,
Tm

Hi Trupti,

I am working in a software firm, and one of our employees has completed 5 years. He is eligible for gratuity. Could you please let me know if we can give the gratuity amount while he is still with us, or should it be provided after his resignation? Also, please explain how the policy works.

Thank you.

Dear all,

Thank you very much for your information. I have taken an 8-month leave in the 5th year itself and have not completed the minimum 240 days in the 5th year. In this case, am I eligible for Gratuity? Please clarify the doubt. I need to show your inputs to my HR and get it clarified.

Warm regards,
Usha

As per the above discussions, if one person leaves the company after completing 4 years and 8 months, he or she will be eligible for gratuity... Is that right?

I joined an organization on 1st September 2009 and resigned on 28th August 2014. However, my last working day was on 12th September 2014. In my experience letter, my job period is stated as 1st September 2009 to 12th September 2014. Can you please advise if I am eligible for gratuity?

Thank you.