Gratuity Rules for Overseas Transfers: Is It 5 Years or 4 Years and 210 Days?

Please suggest on Gratuity rules in case of transfer to a group company outside India. What is the minimum working period for Gratuity payment: 5 years or 4 years and 210 days?

Thanks & Regards,
Rajiv.

Thank you for your response. To explain further, I joined in June 2007 and am likely to get transferred within the company outside India in January 2012. I would like to know if I will still be eligible for the gratuity payment, especially since it is the same company in a different country.

Thanks & Regards,
Rajiv.

Since you have not completed 5 years of service or 4 years and 240 days of service, considering your tenure from June 2007 to January 2012, you will not be eligible for gratuity.

Dear Rajiv,

The intention of the company is quite clear that it wants to avoid payment of gratuity, as the minimum period of service in the 5th year must be 240 days (not 210 days) to count as 5 years of service to be eligible for payment of gratuity. With 4 years and 210 days of service, you won't become eligible for payment of gratuity.

Thanks & Regards,
[Name Removed For Privacy Reasons].

Hi, friends and seniors, One of my friends worked in a company for 4 years and 10 months (i.e., 4 years and 255 days completed). Could you please let me know if he is eligible for Gratuity? The company stated that eligibility is only after completing 5 complete years. However, he argues that he had completed 4 years and 240 days, which should qualify him for Gratuity. Consequently, the company is requesting proof such as an article.

I kindly request that you send me any Gratuity Law article that mentions 4 years and 240 days as eligible for Gratuity (with the specified section number or article number under the Gratuity Act).

I look forward to your positive reply.

Thank you.

Your friend may quote Section 2A(2)(a) of the Payment of Gratuity Act, 1972, in support of his claim, which reads as follows:

EXTRACT of SECTION 2A(2)(a):

(a) For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than:
(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) Two hundred and forty days, in any other case.