Am I Eligible for Gratuity After 4 Years and 11 Months? What If My Employer Refuses to Pay?

I am working with a private bank since February 2007. Now, I got another offer from a different bank, and they agreed to the notice period of 3 months. So, I will be joining there in January 2012, i.e., I will complete 4 years and 11 months. My question is, am I eligible for gratuity, and if my previous company is not ready to pay me the gratuity, what can I do for the same? Please help me in this regard.

You are eligible for gratuity as you have completed more than 4 years and 8 months. In case the company is not willing to pay you the gratuity amount, show them the judgment copy of the Madras High Court, which is readily accessible from this site only.

Thanks,
Amitava Majumder

Dear Amitava, there is a small change to your kind post; please don't mind.

Gratuity Eligibility Based on Location

Dear Rekhus, if your location is different from Tamil Nadu, then the Madras Court ruling is not binding for your "State" where you are currently working. Therefore, I advise you to please complete five years and then leave the job.

I suppose you will be working all through your notice period and will, therefore, complete 4 years and 11 months. Under these circumstances, yes, you are entitled to receive Gratuity.

Regards,
Vasant Nair

Yes, you are eligible for payment of gratuity because for payment, 4 years + 240 working days should be considered, which you have completed.

Thanks & regards,

Sumit Kumar Saxena

One of my colleagues is also facing the same problem. She has completed 4 years and 10 months in her last job, but the company is not willing to accept this clause and is refusing to give her gratuity. Can someone provide proof, like a gazette copy, etc., so that she can use it as evidence with her last employer? Please help me so that I can support her, as she is financially very weak.

Thanks in advance.

Regards, GRETTAPL

Gratuity Act Information

I'm enclosing the Gratuity Act. Everyone can avail of gratuity benefits only if they complete 5 years or more. If anyone resigns within 5 years, they cannot avail of it.

Regards,
AJ

As per the act, an individual is eligible for gratuity only after completing 5 years of service.

Gratuity can be claimed if the Payment of Gratuity Act 1972 is applicable. Then, an employee can claim gratuity under the terms of the employment contract. However, an employee can only claim gratuity after completing five years of service if the Payment of Gratuity Act is applicable.

According to your post, you have not completed five years of service, so you are not eligible for gratuity payment.

Thanks,
Brijesh Kumar Vishwakarma.

You will be entitled to gratuity on completion of five continuous years of service. In your case, you will be completing 4 years and 11 months. You will be deemed to have completed continuous service of 5 years in terms of Section 2A of the Payment of Gratuity Act 1972. I hope this clarifies any questions you may have.

If you have any doubts or need further clarification, please contact:

RL Dhingra, Advocate
Labour Law Consultant, Delhi
Phone: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

Thank you.

Eligibility for Gratuity Payment

Ask your friend to get the leave record of himself from the establishment. By doing this, we can determine the working days of the employee for the last 10 months. If he has completed 240 days, he should be eligible for gratuity payment. If the employer refuses to do so, they are liable to be punished.

Thanks & regards,

Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]

Thank you for your reply. Her joining date was 1st September 2006, and her last working day, as per the letter provided by the company, was 15th June 2011. She was on medical (ESIC) leave for 15 days before she resigned. This means she completed 240 days in the 5th year. We require proof to demonstrate her eligibility to her former employer. Whenever she inquires about gratuity, they simply respond that her case has been forwarded to their consultant, and they will take action once they receive a response. They are taking time as she left the job in June, and it is now September.

Regards,
Grettapl