Am I Eligible for Gratuity After Early Relieving? Seeking Advice on My Situation

Hi, I joined on 1-8-2007 and resigned on 11-1-2012 with a notice period up to 31-3-2012. Our employer relieved me on 31-1-2012 with full pay up to 29-2-2012. Please let me know whether I am eligible for gratuity or not?

Gratuity Benefit Eligibility Conditions

The following conditions must be fulfilled for the Gratuity benefit:

• 5 years of service should be completed.
• The training period should not be considered as part of the service period.

As you have not completed 5 years of service, you are not eligible for gratuity.

Going by your joining date and relieving date, you are not eligible for the reasons Mr. Reddy already informed.

Regards,
B. Saikumar

Dear Madhusudan,

As per my knowledge, there is no provision for 3 years. If you have any documentary proof of the same, please share it with the group. It will help us solve many queries.

Please find enclosed herewith the Madras High Court judgment on eligibility for Gratuity for your reference.

Regards,
Madhusudan

Gratuity Eligibility Criteria

Gratuity eligibility is based on the completion of 5 years of service. After completing 5 years, you will be eligible for gratuity. There is no provision for eligibility after 3 years for gratuity.

I read the comments from all of you professionals. Some of my candidates, whom I placed with a company in Noida, have been working there for the last 3 years. I understand that they are not eligible for gratuity, but what if the company decides to close down?

Eligibility for Gratuity in Case of Company Closure

The company has suddenly decided to close down its operations and shut the offices. Will they be eligible for gratuity in such a case? Please reply.

Thanks,
Kumar

Gratuity Act and Fictional Service

The Gratuity Act does not provide for fictional service in an establishment that is closed, as there may not be an end to revel in such fiction, and there may be claims for P.F. & PL encashments, etc., on the basis of fictional service. However, if the employees are workmen, they can claim closure compensation under Sec. 25-FFF of the Industrial Disputes Act, 1947.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

I was just reading the conversation and would like to add a little clarification regarding the period of 5 years of continuous service. The term "continuous service," as defined in the Gratuity Act, refers to an employee who completes 242 days of uninterrupted service. Therefore, concerning the entitlement of Gratuity, if an employee completes 4 years and 242 days of continuous service, he/she is entitled to Gratuity.

Regards,
Ravi Kumar Jha
Manager, Corporate Legal
CMC Limited (A TATA Enterprise)

As per my understanding, the eligibility period was 5 years. However, the rule might have changed. I want to know when these changes happened. I need the cut-off date.