Am I Eligible for Gratuity After 4 Years and 8 Months at My Job?

I have completed 4 years, 8 months, and 11 days. Am I eligible to claim gratuity from my organization?

No, as you have not completed five years of service, you are not eligible to claim gratuity.

Yes, you can claim the gratuity under the Payment of Gratuity Act since you have worked for more than 240 days. This means that you have effectively worked for five years, making you eligible for gratuity.

Hi,

Is the interpretation of shekarvarma2606 correct? A reading of the Act gives the impression that COMPLETION OF FIVE YEARS (five full years) is a necessary condition for gratuity. Only for the purpose of determining the quantum of gratuity, the rounding off formula for the number of years comes into play. I request senior members to clarify. The question is - should we round off the number of years of service even for the purpose of determining the eligibility for gratuity.

Thanks,
Srinivasan

For the calculation of working days, you can also take into account all the paid leave days that you have availed. If all your working days and the paid leave days total over 240 days in the fifth year, then you are clearly eligible to claim gratuity.

Hi,

What if an employee has completed more than 12 years of employment and thereafter resigned, but the previous employer is not paying the gratuity, which is equal to 12 months of basic salary calculated based on the last month's drawn salary? What can be done?

Ajjuji

An employee who has worked for more than 240 days in the fifth year will be entitled to gratuity. Please see the Madras High Court ruling in the Mettur Beardsell Ltd. case (1998).

Best,
Jai.

Dear All,

The interpretation of Shekar Verma, Jai, and others may be correct, but the Gratuity Act does not allow the same. Five years of service is a must, as written by Srinivasan. Rounding off is necessary beyond five years for eligibility; the clause does not permit otherwise.

However, in one case, as even mentioned by our friend Jai, the Madras High Court has given a judgment that an individual is eligible to receive gratuity if they complete 240 days in the fifth year. Based on this judgment, no amendment has been made in the act; therefore, it cannot become a law. Five years of service are necessary to be eligible for gratuity.

Friends, if an employer is not willing to pay, to whom do we have to complain or report? As Mr. Malik mentioned, it is just a judgment, not an amendment.

The interpretations of Shekar Verma, Jai, and others may be correct, but the Gratuity Act does not allow the same. Five years of service are a must, as written by Srinivasan. Rounding off is necessary beyond five years; for the eligibility clause, it is not allowed.

However, in one case, as even mentioned by our friend Jai, the Madras High Court has given a judgment that an individual is eligible to receive gratuity if they complete 240 days in the fifth year. Based on this judgment, no amendment is made in the act, so it cannot become a law. Five years of service are essential to become eligible for gratuity.

Absolutely right! The reference to 240 days is in a different direction. Even if an outgoing employee has completed more than five years of service, such years in which he/she has not shown 'actual attendance' of 140 days, those years may be deducted from the total service of the employee.

The interpretation of Shekar Verma, Jai, and others may be correct, but the Gratuity Act does not allow the same. Five years of service are a must, as stated by Srinivasan. Rounding off is necessary beyond five years; for the eligibility clause, it is not allowed.

However, as mentioned by our friend Jai, in one case, the Madras High Court has given a judgment that an individual is eligible to receive gratuity if he completes 240 days in the fifth year. Based on this judgment, no amendment has been made in the act, so it cannot become a law.

Five years of service are necessary to become eligible for gratuity.

Absolutely right! The reference to 240 days is in a different direction. Even if an outgoing employee has completed more than five years of service, the years in which he/she has not shown 'actual attendance' of 240 days may be deducted from the total service of the employee.

It depends on the court decision. In a similar case, the A.P. Court gave a positive decision, but in Gujarat, it was rejected by the magistrate.

Thank you.