Am I Eligible for Gratuity if I Include Weekends in My Work Tenure?

Dear Sir, I joined the organization in Bangalore in February 2007, and my last working day would be September 30, 2011. My company is mentioning that I would not be eligible as I would be completing only 4 years and 164 days, not the required 190 days as per the gratuity law. However, I would be completing 4 years and 227 days by September 30, 2011 (including Saturdays and Sundays as holidays).

Please let me know whether Saturdays and Sundays are not considered when calculating the working days for an IT company (assuming a 5-day workweek).

Regards,
Satish

It is correct that the employee must complete 5 years of service in order to be eligible for Gratuity payment.

However, in one case, the Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year, i.e., the fifth year, will be deemed to have continued in service for one year as stipulated by section 2A of the Act. Accordingly, an employee who has put in his service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of 5 years and is entitled to Gratuity.

In your case, your HR is right, and you are not eligible for Gratuity payment. 240 days of continued service include the actual working days for the employer.

Regards,
Kumar Anand
HR - SAMSUNG

The judgment of the Honourable High Court of Madras has a binding effect on the Authorities under the Payment of Gratuity Act in Tamil Nadu. If the High Courts of other states have passed similar judgments, then the Authorities under the Payment of Gratuity Act in those states are bound by those judgments. Otherwise, the Madras High Court Judgment can be cited to persuade the Authorities to follow that decision.

With regards,

I joined the organization in Bangalore in February 2007, and my last working day will be 30th September 2011. My company is stating that I will not be eligible as I will only complete 4 years and 164 days, not the required 190 days as per the gratuity law. However, I will complete 4 years and 227 days on 30th September 2011 (including Saturdays and Sundays as holidays).

Please clarify whether Saturdays and Sundays are not considered when calculating working days in an IT company with a 5-day workweek.

Regards,
Satish

You have to complete 240 days in the fifth year to be eligible for Gratuity.

Best Wishes,
Vasant Nair

Gratuity Transfer Between Companies

If an employee changes companies after 5 or 6 years, will the gratuity service continue with the new company, or will it stop with the previous company? Do we need to apply for gratuity after leaving the company, or can it continue with the new company?

Regards,
Cherry, HR

Gratuity Payment Dispute

I have read in CiteHR and am writing to you regarding the Payment of Gratuity Act. I joined a Pvt Ltd company on 1st June 2005 as a Trainee Surveyor, and as per the Appointment Letter, the trainee period was for a duration of 1 year. I resigned and was relieved from the job on 30th November 2011 after fulfilling a 1-month notice period.

Now, my company is refusing to pay me the gratuity, stating that I was a trainee until February 2007 (the date on which I obtained the surveyor and loss adjuster license), and therefore, I did not complete 5 years in the job, which is the basic requirement for the payment of gratuity.

In response, I have reminded them that as per the Appointment Letter, I was a trainee for a period of 1 year, and nowhere was it mentioned that I would be considered a trainee until I passed the surveyor exam and obtained a license from IRDA.

However, even after my above reply, the company is still not willing to pay me the gratuity.

Please advise me on the above situation to determine whether I am eligible for gratuity or not. I have not found anywhere that the trainee period will not be considered for the calculation of gratuity. Additionally, the employer is deviating from the terms of the Appointment Letter.

Thank you in advance.

Regards,
Manoj

You are absolutely right, and you are entitled to get gratuity. If you were receiving a salary during the training period, why would you not be eligible for gratuity?

I have a similar case. I joined the organization on 9th July 2007, and my last date is 10th April 2012, which will be 4 years and 270 days, including weekends. Will I be eligible for the gratuity?