Eligibility For Gratuity - PDF Download - Eligibilty For Gratuity

K/A Ms.Ashmi,
Regrets for my earlier post coz I haven't gone through ur question correctly.
As per the aforesaid dates ur service period is 4 years 7 months. In order to become eligible for gratuity u must have served for atleast 8 months. I mean 240 days in the 5th year, which will make u eligible for gratuity. But u have served only 210 Days (7 Months X 30 Days). Hence u r not eligible for gratuity.
Court Judgement copy regarding no. of days to be served in 5th year is attached hereunder for your reference.
Regards,
S.N.Raju.U.

Section: 2A

Continuous service.

For the purposes of this Act, -

(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -

(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 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;(b) for the said period of six months, if the employee during the period of six 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) ninety-five 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) one hundred and twenty days, in any other case;

Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -

(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;

(ii) he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and

(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.

(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.

Regards

Tushar

Dear Ashima,
You have to complete 4 years and 240 days for gratuity entitlement . fraction to round off is applicable after 5 years. Suppouse 5 yrs 5 months and 29 days will be considered as 5 years and 5 yrs , 5 months 30 days as 6 years.
Thanks,
M.S. Rana

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

Ashima
From your statement you had worked 4 years and 7 months and your claim is for Gratuity. In one case the judge has taken 240 days as criteria in the fifth year that is 80 per cent attendance for 300 days leaving 52 weekly holidays and festival and national holidays. You should have waited for a month. but u can knock the door of controlling authority. It is cat on the wall may favour u or not.

Your are eligible for the Gratuity. Madras high court in THE MANAGEMENT OF SALEM METTUR case decided somewhere in 1995 had delivered a judgement.

Dear Rajeev
I have a question can any employee avail gartuity while on job? Is it necessary to resign and then claim for gartuity.One of my friend has completed 5 years in Telecom in delhi.can she claim gratuity as she is still working with the comp.
Pls guide and suggest.
Regards
Sima

Dear ashima - if you have completed 1701 days of active service then your are eligible for claiming Gratuity as per the provisions of the Act.
Thanks
Maj Nirmal sharma

The family of an employee who died after completion of one year service is eligible for gratuity.The decision of a HC is applicable only in its jurisdiction unless the verdict is on a constitutional valdity of a central order or law.In the absence of contrary decision of 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 only correctly interpreted sec 2A of the POG Act by which an employee with four years and 240 days of working is eligible for gratuity even with out relying on madras HC order.
Varghese Mathew
Baseindia business Solutions .TVPM
9961266966

Dear Ashima,
Sorry; u are not entitled to gratuity as u have not completed the minimum qualifying period of service of 5 years as per S.4(1) of the P.G.Act,1972.One should not get confused by reading together the 'continuous service' contemplated u/s 2A of the Act with S.4, for the latter is only for the purpose of arriving at the minimum no of days of service rendered in a particular stretch of period exclusive of certain periods of absence.