Am I Eligible for Gratuity After 4 Years, 11 Months, and 18 Days? Seeking Advice

Hi Sir, I am Dinesh. I need information regarding the 4 years, 11 months, and 18 days I spent in the company, i.e., from February 13, 2009, to January 31, 2014. Am I eligible for gratuity? Please help as the company is denying the same.

Regards,
Dinesh Mehra

An employee has to complete exactly five years of satisfactory service to become eligible for Gratuity; hence, you are not eligible.

Dear Dinesh, An employee has to complete exactly five years of satisfactory service to become eligible for Gratuity; hence, you are not eligible.

Clarification on Gratuity Eligibility

Thanks for your reply. As I searched for Gratuity eligibility, I found that a judgment from the Madras High Court states that an employee who has completed 4 years and 240 days in the 5th year, i.e., 4 years, 10 months, and 18 days, is eligible for Gratuity. Could you please clarify this judgment for me?

A copy of the judgment is also attached for your reference. Once again, thank you.

Regards,
Dinesh Mehra

Dear Dinesh Ji,

As per your inquiry, you are eligible for Gratuity after completing 5 years as per the judgment of the Madras High Court and other decisions. Please reach out to your HR department to discuss this matter further.

Regards,
[Name Removed For Privacy Reasons]

Dear Mohan Sir, I had requested the HR department of the company and made them aware of this judgment, but they are denying it. Please suggest what I should do and where I should approach to avail my rights.

Regards,
Dinesh Mehra

First, make an application to your employer requesting payment of Gratuity, including your date of joining and date of leaving. Send it by registered post.

Wait for 15 days, then send a reminder letter to your employer, emphasizing that your initial letter has not been acknowledged and that payment, along with applicable interest, is due.

After another 15 days, send a third letter to your employer, stating that this is a formal notice under the Payment of Gratuity Act, 1972, claiming the amount owed. Notify them that you are prepared to escalate the matter to the Controlling Authority under the Payment of Gratuity Act, 1972, within your employer's jurisdiction. Send a copy of this notice to the Controlling Authority.

Proceed to approach the Controlling Authority under the Payment of Gratuity Act, 1972, with all your correspondence and evidence, such as payslips and documentation of your joining and leaving dates. Obtain Form 'N' either directly from the Controlling Authority or by downloading it online. Complete the form and submit it in triplicate to the Controlling Authority, ensuring you retain a copy for yourself. Specify your claim amount in the form. The Authority will review your case and provide a decision. This is the procedure I have followed in Puducherry Jurisdiction for similar claims.

Dear Dinesh Ji,

If your department does not agree with you, you may go to your area labor inspector and submit a request application regarding this. Your labor inspector will assist you in obtaining the gratuity payment.

Regards

Dear Dinesh,

Many organizations do not pay gratuity until the completion of 5 years of service. Each organization has its standard policies and practices. You can refer to the Madras High Court judgment regarding gratuity grievances. Wait and watch for their statement, then you can proceed with the case in labor court.

Regards

Thank you for your valuable insight. Now, from where I see the case, the company is liable to pay gratuity as per the Payment of Gratuity Act, 1972. No deduction shall be made on the part of the employee's salary when it comes to gratuity; however, for PF emoluments, a lump sum of 12% is deducted, and a similar 12% is contributed by the employer.

Requirements for Claiming Gratuity

1. The employee should have worked for not less than five years for the employer or, in certain cases, four years and in excess of six months. (Please note: the minimum time (days) to consider a year as a continuous year of service is 240 days if working above ground and 190 days in the case of mines). So, here the claim is valid by the employee.

The Gratuity is calculated as follows: (Basic + DA) / 26 x 15 x Number of Years Worked.

Coverage of the Act

If 10 or more persons have been or were employed on any day of the preceding 12 months, then gratuity is applicable.

Current Amendments

Gratuity up to INR 10,00,000 is tax-free, and the maximum gratuity payable should not exceed a total of 20 months' wages.

Hope your query is cleared to some extent. And please, other members, if I am wrong anywhere, please do correct me. I am always open to learning.

However, for people with doubts about anything related to the HR fraternity, you can contact me on my LinkedIn profile Arakanshu Singh - India | LinkedIn or email: [Email Removed For Privacy Reasons].

Attribution: https://www.citehr.com/481806-gratui...#ixzz30HXktYBz

Regards,
Arakanshu Singh

Gratuity Eligibility Under the Gratuity Act

As per the Gratuity Act, one should complete a full 5 years of service for eligibility. The Madras High Court judgment is valid in Tamil Nadu only. In other states, you can request to adopt the Madras judgment and consider it for gratuity payment. They may accept or reject it according to their company policy. However, you can request payment from them.

Gratuity is payable only after the completion of five years of service, i.e., 60 months. The Madras High Court judgment clarifies only the eligibility criteria in a particular year.

Is gratuity payable if an employee is terminated after completing more than five years of service? One such case has occurred where we terminated the services of an employee after seven years in our organization. He was terminated due to habitual absenteeism and non-performance.

In this situation, should we pay him gratuity?

With regards,
sdd.

Yes, gratuity is payable even if an employee is terminated for absenteeism or non-performance.

Regards,
Varghese Mathew