Am I Eligible for Gratuity After Resigning with 4.9 Years of Service?

Hi Friends, I have served a company for 4.9 years and resigned from that company. Am I eligible for Gratuity in that company?

Thanks, Kumaresan P

The answer is "NO." One needs to complete 5 years in the organization to be eligible for gratuity. You could have waited for one more month to qualify for gratuity.

You will get gratuity after completing 4 years and 6 months. It is considered as 5 years. Here in Karnataka, we are paying out the same.

Hi, as per the rules, we have to pay gratuity to whoever completes 4 years and six months of service.

If you have not completed 5 years in service but have completed 240 paid days (Present + OD + All paid leaves + NF + NH) in the fifth year, then you are eligible for gratuity.

As per the law, you are not eligible for gratuity. However, if an organization wishes to pay gratuity for less than 5 years, the act/law will not object.

Regards,
N. N. Tiwari

This rule will be implemented after 5 years. For example, 5 years 6 months or above, not less than 5 years.

Hi,
As per the law, a person who has completed 5 years of continuous service is eligible for Gratuity or 6 months' leave. This means that if there are 6 months remaining to complete 5 years of service, the individual is still eligible for the payment of Gratuity, i.e., from 4 years 6 months onwards up to 5 years of service.

Regards,
S S Daware

If an employee completes 4 years and more than 6 months in the fifth year only, then he will be eligible for gratuity. He can claim the amount of gratuity from the employer according to the Gratuity Act.

Thanks,
Parduman Kumar Sharma

As per the Gratuity Act, one should have at least five years of continuous service to be eligible to receive gratuity. However, the decision on the period is a prerogative of the company to decide and announce. So, please check with your HR department or management.

Regards,
VM007

Dear Kumaresan, you are not entitled to gratuity as you did not complete the minimum required years of service as stipulated under the Gratuity Act. To be eligible for gratuity, you must first complete 5 years of continuous service, during which you should have worked for not less than 240 days in each year, subject to the exceptions granted under the act.

Some of our colleagues seem to be confused and are under the misconception that serving 4 years and 6 months is sufficient to qualify for gratuity. This is a completely erroneous concept. In reality, gratuity is only payable after completing a full 5 years of service, and if an individual completes 6 months of service beyond the 5 years, then they should be paid gratuity for six years.

Regards,
NVRao
Hyderabad

As per the Gratuity Act, it is not applicable to you. It is a benefit given by the Act and the employer to you, so the limit will be 5 years, which you have to complete.

I have advice, and as per the act, it is also the same. There should be no more confusion about this topic.

Thanks,
Murali

Yes, you are eligible for getting the Gratuity. Just when you cover 4 years and 6 months + 1 day, you are entitled to the gratuity. This is legal and affirmative.

Regards,
Raj Thaker

Eligibility for Gratuity under the Payment of Gratuity Act

As per the Payment of Gratuity Act, completion of five years of continuous service is mandatory. A year is considered continuous when 240 days of work are performed. Similarly, any fraction of a year more than six months shall be taken as a year for deciding the amount of gratuity. Therefore, an employee who has worked for five years, six months, and a day will be eligible for gratuity for six years. However, this does not imply that all six months shall equate to one year.

In the case of P Raghavalu & Sons Vs. Addl. Labour Court, AP, it was established that a service of 4 years, 11 months, and 10 days would not make an employee eligible for gratuity. Conversely, in the Mettur Bearsell's case, the Madras High Court ruled that an employee who has worked for at least 240 days in the fifth year shall be entitled to receive gratuity. Consequently, establishments in Tamil Nadu are anticipated to provide gratuity to employees who have worked for 4 years and 240 days in the fifth year. However, since this is a High Court ruling, it may not have any implications in other states.

Even if we adhere to this ruling, six months and a day will not be adequate to fulfill the requirement of 240 days of work in the fifth year.

Regards,
Madhu.T.K

Hi, you are eligible for a bonus as per the decision from the Chennai High Court. Even 4 years and 6 months, if completed, can also be treated as a completed year of service.

Regards,
Nimesh Paul
Stringz Cochin

You have to complete 4 years and at least 10 months. Then you can claim gratuity.

Dear Shri Kumaresan Ji, Shri Madhu T. K., the Board Moderator, has made things crystal clear. While some members have expressed opinions in the affirmative, others have given negative replies. I, therefore, request you to please file an application with your former employer for the payment of gratuity for 4 years and 9 months of services rendered by you. Whenever you receive it, please do not forget to post the news with details on this forum for the information of all concerned. Your experience would be noted as a precedent by all concerned, both the employees who have to leave their job before actually completing the 5-year duration (short of a few days or months) as well as academicians. Best of luck.

You will not be eligible for gratuity as you have not completed the basic requirement, i.e., you have not completed 5 years.

GOD BLESS

Regards

Dear seniors, I want to know how gratuity is calculated and by which method. Please help me.

If an employee has completed 4 years and 240 days of continuous service in their 5th year, they are eligible for gratuity.

With warm regards,
Bhuvnesh
MSW