Is employee eligible for gratuity is company closes before 5 years of service

In case you approach the local State Labour Machinery, your claim can be entertained upto a max of 30 days EL, since in most Shops & Est. Acts of the States the max accrual of EL is 30 days. Regards, PRADEEP

Dear Mr.Kiran,
Please try and explain your point and do not offend the comments made by others. It is important for you to see who is addressing whose query. May be the answer may be to a query posed by yet another person in the thread.
This is a professional forum please restrict to your comments only.
Thanks
M.V.KANNAN

Dear Mr.Mahenda,

Please do not keep worrrying about the matter as to who is eligible. I suggest that you do the following.

1. Advise the claimants (father or mother), if there is a dispute between the father and mother to file a legal heir certificate from the local thasildhar or such authority authorised to issue certificate. In some instances the court gives a legal heir certificate.

2. Based on the legal heir certificate ask them to furnish Form 19 for claiming PF and Form 10D for claiming Pension.

3. Please also note that the nominees are eligible to receive the EDLI benefit (Employees Deposit Linked Insurance Scheme).

4. Consult a lawyer and get an indemnity bond drafted stating that the employer is processing the PF/ Pension claim based on the legal heir certificate produced and in the event someone makes a claim in future date and is entitled for it then this nominee will indemnify the amounts due to the third party making the claim and the company will have no role in settling the claim made by the third party.

If you have any further queries please feel free to contact [Login to view]

M.V.KANNAN

Dear friend Harinder Singh,
At the first instant i have explain and conclusion of the same is in the circumstances when company is legally closed and not a single employee has completed 5 years of required service as stipulated in The Payment of Gratuity Act u/s.4 and also Raghunath has reproduced sec.4 then there should not be any doubt that in any condition if employees losses their services before 5 years; they are not eligible to receive the payment of gratuity.
regards,
KIRAN KALE

Mr. Kale is absolutely right that our dear friends are focusing on the other issues but not on the exact querry. So kindly focus on the main issue. I also wants to draw attention to our friends regarding entitlement for Gratuity and that is 5 years it has nothing to do with income tax, 5 years is mendatory.
Regards
Rajesh Chakraborty