Am I Eligible for Gratuity After Just 4.8 Months in My Current Job?

I have completed 4.8 months in my current company. Now, I want to change jobs. Could you please confirm if I am eligible to receive gratuity or not?

Regards,

I have been working in my current company for the last 4 years and 8 months. Now, I want to change jobs. Could you please confirm whether I am eligible for gratuity benefits or not? This is because there are 4 months pending to complete the 5 years of service.

You are not eligible for gratuity. What Kavitha says is correct. You worked only 8 months. 240 working days may not fall within an 8-month period.

Regards,
Alphonse

It's 240 continuous working days that include official holidays and approved leaves as well. So, Rajesh, you are eligible to claim gratuity.

You are not entitled to gratuity as you did not complete the required service of 5 years with your employer organization. To be eligible for gratuity, one should have completed 5 years of continuous service (not less than 240 days in every year) in a single organization. Only then will such a person receive gratuity. Of course, there are exemptions under the gratuity act for this rule with regard to deceased employees and persons who resigned due to sickness, etc., before completing 5 years of service. In such cases, continuous service of 5 years is not necessary, and the gratuity is to be paid for the actual number of years completed plus future liability in the case of the death of an employee.

Regards,
N.V. Rao

You are not eligible for the payment of gratuity as five years of continuous service is necessary. Secondly, what Kavita stated is true, but keep in mind that 240 days should be the working days excluding weekends, leaves, and festival holidays.

Thanks and regards,

Sumit Kumar Saxena

[Phone Number Removed For Privacy Reasons]

You have to complete 5 years of service fully to get gratuity. In Tamil Nadu, the Madras High Court gave a verdict that 4 years and 240 days of work in the 5th year will be eligible for gratuity. Therefore, please wait and work for 4 more months to be eligible for gratuity.

Regards,
D. Gurumurthy
HR/IR Consultant

As I am outside of the country, we do not calculate gratuity here. However, I want to know how to calculate it. Please advise me.

As mentioned, you cannot claim gratuity if you are not entitled to it. To be eligible for gratuity, you need to have worked for at least 240 days (excluding weekly offs, paid holidays, etc.). An employer may choose to provide gratuity voluntarily based on your past performance in this regard.

Gratuity Continuation of Services

Gratuity continuation of services means one who works for 240 days in a year, including leaves and holidays. In your case, if you work for 240 days in the 5th year, then you will be eligible for gratuity. In law, judgment differs from case to case; no one can say in writing whether you are eligible or not. The past high court has given the judgment that one who works completely in the fifth year is eligible for the payment of gratuity.

In case the employer is not willing to pay, you can go legally and file a petition in the Industrial Tribunal Cum Addl. Labour Court of the jurisdiction of the employer. Also, considering the welfare of the employee, some companies pay the gratuity; in your case, it all depends on the employer and courts.

I hope this brings you insight to make a decision and to act accordingly.

Thanks,
Naresh

"Judgment from Supreme Court:
\"Yes, by virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C. 433)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec. 4(2) and thereby is eligible for gratuity.\""

Entitlement for Gratuity

Entitlement for gratuity requires 5 years of continuous service in an organization. For the calculation of gratuity, you need not have less than 5 years of continuous service in an organization for the first 5 years.

The Act provides that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

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

As the act clearly states, one should have completed five years of continuous service to be eligible for gratuity. In such a case, one must have completed the full five years and nothing short of it.

Mr. NV Rao is correct because five years of continuous service is required for gratuity eligibility. In cases of death and permanent disablement, this condition is not applicable. Please let me know if you need any further assistance.

Yes, definitely you are eligible for gratuity as per the provisions of the Gratuity Act. As you mentioned, you have completed 4.8 years of continuous service in the company. In your case, the only thing to ensure is that you have worked for 240 days (including weekends, holidays, and paid leave) during the last 8 months. According to the act, 4.6 years and a minimum of 240 days of working attendance in the last year are considered as 5 years of continuous service and thus make you eligible for gratuity.

With Regards,
Gawas V