Is an Employee Eligible for Gratuity After 4 Years and 11 Months of Service?

We have a typical case regarding gratuity and would like to request your advice. An employee with the designation of Manager has worked with us for 4 years, 11 months, and 12 days. Is he eligible for the payment of gratuity?

Regards,
Somraj Dey
Dy Manager HR

He/She should have completed continuous service of 5 years. (Continuous service means 240 days in each year of service.)

Yes, he is eligible for gratuity. If the payment of gratuity is applicable, then more than 6 months will be rounded. If the act is not applicable, it will not be calculated. So, first, confirm whether the act is applicable in your company or not. Generally, a company with more than 10 employees is eligible for the payment of the gratuity act.

Regards,
Rashmi

You can pay gratuity even if he is not eligible. I don't think you will get a clear answer from this group as it depends on how you interpret the law, so it would be better if you make your interpretation and keep it lenient towards the employees.

Regards

I agree with the comment of Vidhya that if a person continuously works for 4 years and 240 days, then they are eligible for Gratuity.

Regards,
ALPESH THAKKAR
ASST. MANAGER - HR
ADVANCED SYSTEK PVT. LTD.

An employee who has worked for 4 years and 240 days is eligible to claim 20 days of leave. This applies in the case where the employee has worked for 4 years, 11 months, and 11 days.

Regards,

He is eligible for gratuity if he has worked for 4 years and 240 days in the fifth year. For your reference, I am enclosing a judgment in this regard.

Regards,
S. Sethupathy
Excellent HR Services
Erode

Hi, there have been various discussions on this topic earlier. One of the members had mentioned a court ruling (I think Chennai-based) where the employee was granted gratuity on having completed 240 days in the 5th year and not actually completing 5 years. Please refer. When there is confusion regarding the interpretation of an Act, I personally suggest that it depends on the management: i.e., if they prefer to have a flexible or a rigid approach within the realms of the Act.

Regards

He will be eligible for gratuity. I am working in BHEL, and here the gratuity is limited to Rs. 10 lakhs (Basic pay + DA).

Rules:

1. Service up

He will be eligible for gratuity. I am working in a PSU where the gratuity is limited to Rs. 10 lakhs (Basic pay + DA).

Rules:

1. Service up to 1 year = 2 months' emoluments.
2. Service after 1 year but before the 5th year = 6 months' emoluments.
3. Service after 5 years but before 20 years = 12 months' emoluments.

Regards,
Manju

Hi Som, I would like to inform you that after the completion of five years of service, an employee will be entitled to gratuity. In some cases, if an employee has completed 4 years and 240 days of continuous service and can prove this in the High Court, they will be eligible for gratuity for five years. You can refer to the attachment of Sethupathy for more information.

Thanks and Regards,
Sunil Sharma
V3S Group
[Email Removed For Privacy Reasons]

He is eligible for gratuity if the employee has continuously worked for 4 years and 8 months in the organization. There are decisions from the Chennai High Court stating that gratuity can be paid for a period of 4 years and 6 months as well. Therefore, we can consider 4 years and 8 months as the eligibility criteria for gratuity.

Regards,
Nimesh Paul

Stringz - HR Consulting, Staffing, Recruiting in Kerala
http://www.stringz.in

In this case, he is eligible for gratuity as he has completed more than 240 days in his fifth year of service. As per the Gratuity Act, if he serves more than six months, it is rounded off to a full year. Therefore, he has to be paid the amount of gratuity.

Regards,
Mendonca

Yes, it is applicable. Four years and 240 days in the fifth year. Each year, 240 days should be considered.

Regards

Eligibility for Gratuity Payment

Employees who have worked for 4 years and 240 days are eligible for payment of gratuity as per the judgment of the Madras High Court. This applies if an employee completes 4 years and, in the fifth year, completes 240 days.

Yes, I agree with Ms. Rashmi. For 6 months and above, a full year should be considered for gratuity calculation.

-prodigytechnologies.in

Gratuity is payable if continuous service is 4 years and 240 days (which means completed 5 years) as per the Act and decision of the Madras High Court.

Regards,
K. Ramachandra
Bangalore

He will not be eligible for Gratuity as per the provisions of the Payment of Gratuity Act, 1972.

Eligibility for Gratuity

An employee, to be eligible for Gratuity, should, in the first instance, complete continuous service of 5 years or more.

In the instant case, he has completed service of 4 years, 11 months, and 12 days. The question of 240 days of service, as indicated in subclause (ii) of clause (2)(a) of Section 2A, to confer the status of "deemed to be in continuous service," will not be applicable while deciding the initial qualifying period of 5 years. The judgment quoted by one of the members is of the Chennai High Court and would not be applicable in Delhi. The directions given by the Chennai High Court can be challenged in the Supreme Court of India. Any final interpretation of this issue can only be decided by the Supreme Court of India. However, until such time this issue is decided by the Supreme Court, we have to go by the minimum initial qualifying period as laid down in the Act, irrespective of any other consideration.

Regards,
Sudhir Savant

[Phone Number Removed For Privacy Reasons]

Gratuity Payment Eligibility

Gratuity shall be payable to an employee on the termination of their employment after they have rendered continuous service for not less than 5 years. However, the completion of continuous service of five years shall not be necessary where the termination of the employment is due to death or disablement.

I agree with Mr. Sethupathy. When the provisions of any Act are not clear, one should always refer to the judgments passed in this respect by the competent courts, which is always safe and appropriate as well.

If his service is more than 4.6 years, we have to consider it as 5 years. According to me, he is eligible to close the issue with a simple logic. Don't drag it for a long time for unnecessary problems.

If his service is more than 4.6 years, we have to consider it as 5 years. According to me, he is eligible. Close the issue with simple logic; don't drag it out for unnecessary problems.

No doubt he is eligible for gratuity as he has completed more than 4 years and 6 months in the same organization.