Am I Eligible for Gratuity After 5 Years of Service? Let's Discuss

I joined an organization on 15th May 2008, and my last working day, including the notice period, was 14th May 2013. Will I be eligible for gratuity?

Yes, you are 100% eligible. I have also claimed within a period of 5 years, with your interval of start and end.

Eligibility for Gratuity

You are eligible for gratuity if you have:

1. Worked for 240 days in each of the last 5 years that you have been in that job.
2. There has been no break in service, such as resignation and then rejoining in a short period, etc.

For that matter, any reason whatsoever, if you have not worked 240 days in any given year, will disqualify you from gratuity.

Yes, have you filled out the form to withdraw gratuity before leaving the company? If not, please contact the HR department of your previous company and sort it out.

You are eligible as you have completed five years of continuous service with the same employer.

I am sorry to say that you are not entitled to the payment of gratuity under the Act. You need to complete the full term of five years. In the last year of your service, you need to calculate whether you have completed 240 days. You are not allowed to add your notice period while calculating your entitlement to gratuity. We have had a lot of discussions on this issue earlier.

I request members like Kamal not to misguide others unless you are sure of an issue under discussion. A plain reading of section 4 of the bare Act would have given you the exact information.

Regards,
Bs Kalsi
Member since Aug 2011

Eligibility for Gratuity

If you have continuous service for 5 years and have worked a minimum of 240 days in each year for all 5 years, you are eligible for gratuity. Simply request it from your employer. If you are not granted gratuity, you can approach the labor court for assistance.

Supreme Court Verdict on Gratuity Eligibility

After the verdict of the Supreme Court, it is now clear that even if an employee has worked for 4 years and 8 months, they are eligible for gratuity. You are entitled to Gratuity.

You have mentioned the same thing that I addressed in my previous email. You stated 4 years & 8 months, whereas I mentioned 4 years and 240 days in the final year of his service. The main question was whether the notice period should be considered when calculating the 5-year period that makes an individual eligible to receive gratuity. The term 'continuous service' is defined in Section 2A of the Payment of Gratuity Act, but there is no mention of the notice period. Based on these facts, he does not qualify for gratuity payment under the Act.

Regards,
BS Kalsi
Member since August 2011

You are eligible for the gratuity scheme if you have had continuous service for 5 years and worked a minimum of 240 days in a year for all 5 years. Just request the employer for the details, and if not provided, you can approach the labor court for assistance.

Please review your payslip and related factory documents to provide the necessary support for this scheme.

Regards,
V. Loganathan.

Dear Sir, if you have any updates regarding the gratuity scheme, for example, any ongoing processes related to the gratuity amount calculation based on a one-month salary scheme, please share them.

Regards.

I wanted to know whether it is appropriate or not to give someone gratuity from day one.

Dear Mr. Kalsi, First of all, the notice period need not be mentioned separately as it is considered a part of your service tenure. Also, please see the post and read carefully. Mr. Amit joined the services on 15 May 2008 and resigned on 14 May 2013, so even in any case, he completed 5 calendar years with his employer. How much notice period do you think he would have served? 3 months... even if you take that part out, as you say, he would still be crossing that 2 years 240 days mark, so he will be entitled to gratuity in any case.

I would request you to please read the post carefully before providing your opinion on the same and criticizing other members. Mr. Kamal Prasoon Sinha was right in saying that he is entitled to gratuity.

Regards,