Am I Eligible for Gratuity If My Notice Period Completes 5 Years of Service?

Hi,

Could anybody explain the eligibility for gratuity during the notice period?

For example, if I joined a company on 19-Sep-2006 and resigned from the service on 19-July-2010, with a notice period of 2 months, my last working day with the company would be 20-Sep-2010, completing my 5 years of service. I just want to confirm if I am eligible for gratuity in the above case.

Thanks,
Dhirendra

Dear sir,

Even the period of 4 and 1/2 years is treated as 5 years, so why do you have such doubts? It is certainly plausible to you.

Regards.

Dear R. N,

Thank you. Actually, the period mentioned above was just a dummy period for simplicity, but the actual scenario is the same for me. I have completed 4 years and 8 months and I want to resign at the earliest, but my notice period is 2 months. So, I just want to make sure that I do not miss out on the gratuity and I want to check when I can be eligible at the earliest.

Thank you

Dear Dhirendra,

To be on the safer side, I would like to suggest you complete five years of service, including that of the notice period. The notice period is also included in the length of service.

Regards,

R N KHOLA

I would like to differ with Mr. B.N.P Singh in this regard. To count your length of service, you have to complete 5 years (including your notice period). Even 4 years 11 months will not make you an eligible employee in terms of gratuity. So, I agree with Mr. R.N.Khola; you must complete 5 years of service to avail gratuity.

Regards,
DG

As per the Madras High Court judgment, a period of 4 years and 240 days completed will be eligibility for Gratuity, but to be on the safer side, completing 5 years would be better.

Hi,

I have a doubt regarding gratuity eligibility. Will gratuity eligibility be considered from the date of joining (DOJ) or after confirmation?

In my case, I joined my organization in August 2011 (probation period), and after 6 months, in February 2012, I was confirmed (permanent). Please clear my doubts.

Gratuity is calculated from the date of joining.

Check my blog www.labourlawhub.com for more information.

Gratuity is payable for continuous service rendered for not less than five years. Under Section 2A, "continuous service" includes periods of leave, absence without permission, etc. For the purpose of calculating the quantum of gratuity, it is payable for each "completed year of service," i.e., 240 days per year. So, I think working for 4 years and 240 days will make you entitled to gratuity. For more information, check www.labourlawhub.com.

You are eligible for gratuity.

Dear Dhirendra,

Whether an employee is in his notice period, if the salary will be paid to him for that period, it will be the Net Amount (after all the deductions, including gratuity too). So, the gratuity will be paid to him. The last date of working is always considered as THE DATE OF RELIEVING after the completion of the notice period. So, it will definitely be counted.