Am I Eligible for Gratuity After 4 Years and 7 Months in IT? Seeking Advice

Hello everyone, I have completed 4 years and 7 months of service with one of the IT companies. Am I eligible for gratuity? Details are:
- DOJ: 1st July, 2008
- Last date: Jan 31st, 2013
- Notice Period was from Dec 31 to Jan 31.

Am I eligible for gratuity? Any help would be appreciated.

Thanks in advance.

Regards,
Ashima

Thank you, Bhandhavi, for replying back. I was working in Bangalore, i.e., Karnataka. Any help or guidance would be appreciated. My office people said only when I complete 4 years and 8 months, I would become eligible.

Regards,
Ashima

If you have completed 4.5 years or more, you are eligible for gratuity. After 4.5 years, the remaining period should be rounded off for calculation.

Regards,
Rajeev Dixit

The Act states that a fraction of a half day should be considered as a full day, and less should be omitted. If you have completed 4 years and 6 months, it means you have completed a fraction of a half year, so it will be treated as a full year. This means 4.6 equals 5 years.

Suppose you have completed 4 years and 3 months, then you have not completed a fraction of a year, which means it's less than a fraction of half, so it should be omitted. This means 4.3 equals 4 years.

Therefore, you are eligible for gratuity.

Regards,
Arun J.

Hi Arunji, Thanks for the update. My years come out to be 4.58. Still, I believe I would be eligible. Any supporting document would help a lot.

Regards,
Ashima

If your organization operates on a 5-day working week, then gratuity is applicable for continuous service of 4 years and 190 days. Otherwise, it is applicable for 4 years and 240 days.

Does it apply in Noida as well? I have worked from 1st June 2007 to 11th January 2012, and my company was a 5-day working organization. Am I also eligible for the gratuity? However, my company policy stated it for 5 years.

Regards,
Hardeep Kaur

Yes, please go through the act and check Section 2A(2) where it is mentioned...

Eligibility for Gratuity

Five years are needed for gratuity. Rounding up to five will not help. Therefore, I understand that one should not post based on their own thoughts.

Regards,
Dr. Dave

Well, I also read the act. It clearly shows that service should be more than 5 years, and then rounding off 6 months or more applies. Am I correct?

For eligibility, one should have completed 5 years fully. A fraction of 6 months and above shall be rounded off only after your eligibility of 5 years for the calculation of gratuity purposes.

Gratuity Eligibility Clarification

You are not eligible for gratuity since you have not worked for 240 days in the 5th year. The rounding off of 6 months or more of service to one year is not for considering the eligibility of gratuity, i.e., 5 years of service, but for the computation of the number of years of service for payment of gratuity to eligible persons.

Regards,
Varghese Mathew

Please refer to Section 4 of the Gratuity Act. You are not entitled to gratuity as you have not completed the required minimum service of 5 years. Six months rounding to one year is counted only after you complete a minimum of 5 years of initial service.

Eligibility for Gratuity

You are required to render 240 days of service for five continuous years. It's just obvious that within seven months of the 5th year, you cannot complete 240 days. Thus, you are not entitled. For the sake of calculation, more than six months means another complete year but not entitlement to Gratuity.

Regards

Thank you, everybody. Ordysen Sir, my company operates on a 5-day working week. In this scenario, wouldn't I become eligible after completing 190 days, considering 7 months as 7 x 30 = 210 days? Kindly clarify this point. Thanks in advance.

You are eligible for gratuity. As per the aforementioned dates, your service period is 4 years and 7 months. According to gratuity rules, a day more than 6 months will be treated as one year. Therefore, your service period, considering gratuity rules, will be 5 years. Hence, you are entitled to gratuity.

Regards,
S.N. Raju U.

Please read the attachment provided by the Madras High Court judge, where it discusses the applicability of gratuity.

Thank you.

Regards

I apologize for my previous post as I did not review your question thoroughly. Based on the mentioned dates, your service period is 4 years and 7 months. To be eligible for gratuity, you need to have served for at least 8 months, which equates to 240 days in the 5th year. Unfortunately, you have only served 210 days (7 months x 30 days). Therefore, you are not eligible for gratuity.

I have attached a copy of the court judgment regarding the number of days required to be served in the 5th year for your reference.

Regards,
S.N. Raju U.

You have to complete 4 years and 240 days for gratuity entitlement. The fraction to round off is applicable after 5 years. For example, 5 years, 5 months, and 29 days will be considered as 5 years, while 5 years, 5 months, and 30 days will be considered as 6 years.

Thanks,

M.S. Rana

Eligibility for Gratuity Based on Service Duration

Service for 240 days in a year is mandatory as far as entitlement is concerned when you are not employed in a seasonal establishment.

Regards

From your statement, you have worked for 4 years and 7 months, and your claim is for gratuity. In one case, the judge has taken 240 days as the criteria in the fifth year, which is 80 percent attendance for 300 days, excluding 52 weekly holidays, festivals, and national holidays. You should have waited for a month, but you can approach the controlling authority. It is uncertain and may favor you or not.

You are eligible for the gratuity. The Madras High Court, in the case of The Management of Salem Mettur, decided somewhere in 1995, delivered a judgment.

Question About Gratuity Eligibility

I have a question: Can any employee avail gratuity while on the job? Is it necessary to resign and then claim gratuity? One of my friends has completed 5 years in Telecom in Delhi. Can she claim gratuity as she is still working with the company?

Please guide and suggest.

Regards,
Sima

If you have completed 1,701 days of active service, then you are eligible for claiming gratuity as per the provisions of the Act.

Thanks,
Maj. Nirmal Sharma

Eligibility for Gratuity After Employee's Death

The family of an employee who died after completing one year of service is eligible for gratuity. The decision of a High Court (HC) is applicable only within its jurisdiction unless the verdict pertains to the constitutional validity of a central order or law. In the absence of a contrary decision by its own HC on the same subject, the decision of another HC will have only a persuasive effect.

In the case of gratuity, the Madras HC has correctly interpreted Section 2A of the Payment of Gratuity (POG) Act, stating that an employee with four years and 240 days of working is eligible for gratuity even without relying on the Madras HC order.

Regards,
Varghese Mathew
Baseindia Business Solutions, TVPM
[Phone Number Removed For Privacy Reasons]

Sorry, you are not entitled to gratuity as you have not completed the minimum qualifying period of service of 5 years as per Section 4(1) of the Payment of Gratuity Act, 1972. One should not get confused by reading together the 'continuous service' contemplated under Section 2A of the Act with Section 4, as the latter is only for the purpose of arriving at the minimum number of days of service rendered in a particular stretch of period exclusive of certain periods of absence.

Eligibility for Gratuity

Simple rule - 1701 days of continuous service irrespective of any state. If you have completed 1701 days, you are eligible.

Regards