Am I Entitled to Gratuity After 4 Years and 8 Months at My Job? Seeking Clarity

I have worked in an organization for 4 years and 8 months. Am I entitled to gratuity? Please answer me. If yes, then how? If no, then why?

If you have an attendance of 4 years and 240 days, you are eligible for gratuity.

Regards, Abbas.P.S

The LIC department denied releasing the gratuity. Can anyone provide a legal case reference or any judgment related to this matter?

Clarification on Gratuity Eligibility

Sorry, there was some misunderstanding due to one verdict from the Supreme Court and another one from the Madras High Court that if there is an attendance of 240 days in the last year, it will be considered as a full year. When I went for a detailed study, to my knowledge, after the above judgments the act is amended as follows:

1. Minimum eligibility to get Gratuity is 5 years.
2. In the case of permanent employees, for the preceding 12 months, there should be a minimum attendance of:
- 190 days:
- for those who work in Mines
- for those who work for less than 6 days in a week
- 240 days in other cases.

In other words, 240 days is the minimum attendance in 12 months.

Regards,
Abbas.P.S

You are not eligible to receive gratuity because a minimum of 5 years of service is required to qualify for gratuity.

Regards,
JS Malik

Gratuity Eligibility Queries

Thank you for sharing your opinions on Gratuity. I have two additional queries as follows:

1) Whether it is for 4 years and 240 days OR the successive completion of 5 years. Suppose an employee joins an organization without an appointment letter, and the company pays them via petty cash voucher. After 2 months, the company issues a letter mentioning the appointment date, including the initial 2 months. In this scenario, is the employee eligible for Gratuity?

For example, an employee joins an organization on 1st November 2005. The company pays their remuneration for November '05 and December '05 via petty cash vouchers and adds them to the payroll from 1st January 2006. Although the company intended to offer an appointment letter from 1st January 2006, the employee discusses this with their boss, resulting in the cancellation of the initial letter. A new letter is then issued on the company letterhead, reflecting the appointment date as 1st November 2005. Is the employee eligible for Gratuity from this date?

2) If an employee has worked with an organization for more than 5 years, such as 5 years and 2 months, 3 months, 4 months, etc., are they eligible for the exact duration they have worked, or are they only eligible for a flat 5 years? For instance, if an employee has worked for 5 years and 2 months, are they eligible for 5 years and 2 months of Gratuity, and if they worked for 5 years and 4 months, are they eligible for 5 years only, or 5 years and 4 months?

Please provide any supporting documentary evidence.

Thank you,

Nitz

It's been 5.10 years since I have been working with the same organization, and I want to apply for gratuity. The problem is I joined in December 2004, and another company took over in 2006. They are considering my Date of Joining from 2006, which means I am not eligible for gratuity as per their records.

Please suggest what needs to be done in this case and also confirm if I am eligible for gratuity or not with the calculation.

Regards,
Vishnu Sabharwal

Dear Nitz,

In response to your first query, the employee's joining date should be considered as 1st Nov. 2005 for the purpose of gratuity payment.

Regarding your second query, attendance of 180 days or more (equivalent to six months or longer) after completing 5 or more years of service is counted as one complete year for gratuity payment. However, attendance of less than 180 days (less than six months) after completing 5 or more years is not considered for gratuity payment.

Thanks, R K Singh

For the payment of gratuity, the fraction to be rounded up to the next year should be more than six months. If it is six months, it will be rounded down. Also, don't take 6 months as 180 days.

For a fraction of 6 months from 1.7.2009 to 31.12.2009, the number of days is 184 days. But this will not be rounded up but ignored. In this case, only the completed years of service will be taken into account.

Regards,
Abbas P.S.

You are eligible to receive gratuity if you have completed four years and a minimum of 240 days in the fifth year.

HC Judgement of Madurai, TN

Thanks,
AK Sharma

Gratuity Eligibility and Impact of Leave

What is the formula for gratuity? If an employee takes a leave, such as maternity leave, would they still be eligible for gratuity? In the case of an employee being given a break from the company's side, what would be the impact on gratuity?

Latest Judgment on Gratuity Eligibility

Guys, the latest judgment of the controlling authority ALC(C) Delhi in my case was decided in my favor. On 03/06/2010, DMRC Ltd was ordered to release my gratuity as determined by the CA for my service of 4 years, 9 months, and 19 days. So, let us be clear and sure about that 5 years of continuous service thing!

Can you share a copy of the order issued by the Asst. Labour Commissioner in Delhi regarding the payment of gratuity? It will be of great help.

Thanks & Regards,
Umesh