Is an Employee Eligible for Gratuity After 4 Years and 10 Months of Service? Urgent Clarification Needed

Employee joined on 25.09.2006 and was relieved from service on 31.07.2011. Please clarify whether the employee is eligible for gratuity as per the Gratuity Act. Treat the matter urgently.

He is eligible for gratuity if he has worked for 240 days in each of his service years, including in the fifth year.

Regards,
S. Sethupathy, Excellent HR Services, Erode.

Dear Sethu, you are correct. I have one doubt. If the employee has worked more than 5 years of regular service and is to be terminated by disciplinary action, does it mean that he is eligible for getting gratuity or not? Please explain the state policy.

Regards,
Sukumar

Dear Sukumar Ji,

If the employee is compulsorily retired with all terminal benefits, he is eligible for payment of gratuity. It is considered a mild punishment. The employee loses the remaining services but retains the benefits of past services. However, if he is dismissed, he loses the gratuity altogether. Therefore, please refer to the termination order for eligibility for gratuity.

Regards,

Dear Vijay Ji, please advise the concerned employee to lodge a claim for gratuity in the prescribed form. Whenever they receive it, please share the success in this column for the guidance of others.

Regards

Dear Suku,

As per the law, if an employee is terminated by the company under disciplinary procedures, they are not eligible to claim gratuity.

Regards,
Suri

If an employee is not terminated and completes 240 days in the fourth year before resigning, then they will be eligible for Gratuity.

No, this employee will not be entitled to receive gratuity from the employer.

Regards,
R N KHOLA

Maybe part of CTC, but it is only payable upon becoming eligible.

Regards,
R N Khola

Is there any exemption under Gratuity? For example, if an employee has worked for 25 years and at the time of leaving his/her Basic Salary was Rs. 30 thousand, then as per the Gratuity Act (for Pvt. Ltd. co.), his/her gratuity would be approximately Rs. 4,32,692. Would he/she receive the said amount or any other amount according to the Payment of Gratuity Act, 1972.

Regards,
Rohit

Dear Khola ji, is there any provision in the Payment of Gratuity Act, 1972, that considers any type of short entitlement for the service?

One of my acquaintances resigned from his position when he was close to completing his 5th year of continuous service. He resigned after completing 4 years and 11 months in the role.

Thanks,
Neeraj

I calculated the Gratuity amount as follows: Basic Salary + D.A (if any) / 26 * 15 * No. of years completed.

Regards,
Rohit

According to the Payment of Gratuity Act, 1972, an employee must complete five years of continuous service with the same employer. However, as per the judgment of the Hon'ble Madras High Court, an employee is entitled to receive gratuity upon completing 240 days of service in the fifth year. Members have repeatedly referenced this judgment to inform others, so please review it to address your query conclusively. I trust that the Controlling Authorities in the Gurgaon area under the PG Act are also taking this judgment into consideration when determining gratuity matters.

Regards,
R.N.KHOLA
(M) [Phone Number Removed For Privacy Reasons]

It is mandatory to complete 5 years at first instance. Then, one has to put in 240 days every year to be paid. If someone does not complete 240 days, he/she cannot claim gratuity for that year.

Regards,
Murali

If an employee is terminated due to misconduct or any practices that are included in the company's standing order, then even if he/she completes 5 years of service, they will not be eligible for gratuity or any form of settlement from the company.

Regards,
R. Devarajan