Will I Qualify for Gratuity if I Resign After 4 Years and 8 Months with a 2-Month Notice?

Would I get gratuity money if I have completed my continuous service in a company for the last 4 years and 8 months and I resign now? I know that if I resign today, then I would be released only after a two-month notice period, and by that time, it would be 5 years in total.

Whether my resignation date would be considered for the calculation of the continuous 5-year term, or it would be calculated on the day when I would be released (i.e., relieving date) from the company. Do I have to fill any form or inform the company about gratuity? If so, when? Just after receiving the relieving letter when it reaches 5 years or can it be submitted even before that?

Thanks a lot in advance.

Don't worry, dear. You are entitled to receive gratuity after completing 4 years and 6+ months; it is not mandatory to complete 5 years.

Regards,
Jitendra

Gratuity Eligibility Update

Gratuity is paid after the completion of 5 years only. After completing 5 years, if the employee works for 6+ months, they will be eligible for gratuity for 6 years. Recently, I came across a judgment that if an employee completes 4 years and at least 240 days in the 5th year, they are eligible for gratuity for 5 years. This is just to update you all.

Regards,
Arun

Gratuity Eligibility Clarification

Please help. I joined my current organization on January 15, 2007. I have a notice period of 90 days. I am seeking clarification on my eligibility for gratuity. If I resign after January 15, or if I resign three months before that, will the notice period time be counted?

Regards,
Dlp

Dear member,

Serving during the notice period is as good as normal service. The last day of your work will be considered for gratuity calculation.

Regards,
Pon

Dear friend,

Not the date of your submitting your resignation papers, but the date of your release would be counted for the computation of your gratuity. Be sure about it. From the date of your joining to the last day of work would be your total qualifying service, less any days of unauthorized absence, if any, which are not regularized by the competent authority as leave due and treated as leave without pay. However, leave without pay on medical grounds, duly supported with a proper medical certificate, is to be considered as qualifying service. Hope you do not have such a problem and would receive the gratuity admissible for a full five years of service. Good luck.

From the date of joining, you have to complete 4 years, 10 months, and 11 days of service to be eligible for gratuity. Please refer to the below Supreme Court judgment on this matter.

Clarity on Gratuity Eligibility Service (5 or 4.8 years):

The gratuity eligibility service as per the Gratuity Act 1972 is 5 years.

According to the judgment from the Supreme Court, it appears that the gratuity eligibility service is 4 years and 240 days.

"Judgment from the Supreme Court:

"By virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C.433)], it is sufficient that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act as well. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and is thereby eligible for gratuity."

Regards,
Tirupathi Reddi

Very important discussion, but I do not understand how 10 months and 11 days correspond to 240 days. Are these 240 calendar days or 240 working days?

Also, since a partial year is rounded, 0.5 is taken as 1. Then, will 4.5 years not become 5 years?

I will be extremely grateful for a reply.

Regards

Court Ruling and Gratuity Act Compliance

Court rulings or judgments are not incorporated into the Payment of Gratuity Act. Companies can adhere to the provisions of the Gratuity Act for employees with 5 years of service.

Regards,
Pon