Am I Eligible for Gratuity If I Complete 5 Years During My Notice Period?

Dear Sir/Madam, I joined an NGO project on the 7th of June 2010. My first PF amount was paid in October 2010. Now, I would like to resign from my job by the 10th of June 2015, for which I should issue the notice 30 days earlier (by the 10th of May 2015). If the management accepts my resignation, please let me know if I am eligible for GRATUITY benefits (considering our organization's requirement of 5 YEARS for gratuity eligibility).

My question is simple: Am I eligible for gratuity benefits if I complete the required years during the NOTICE PERIOD (4 years & 11 months of normal working and the final 1 month in the notice period)? Please answer this question as soon as possible because I need to make decisions and plan accordingly.

Thank you.

Notice period will be included in the 5-year service period. However, you may also consider other members' views.

Dear Kailash,

You are eligible for gratuity payment as you will have completed 5 years, and your last work day will be the 10th of June as mentioned. Your claim for gratuity is valid.

Regards,
Murali

The question of payment of gratuity arises only on the exact date of actual termination of employment. Therefore, the service rendered during the notice period will have to be included in the qualifying service for gratuity.

You are surely eligible for gratuity. It is based on the total duration of work.

What if he resigns on the 10th of May as planned by him and the management relieves him in a couple of days? Will he still be eligible for gratuity?

Would you like to know if he will still be entitled to gratuity if he resigns on the 10th of May, as planned by him, and the management relieves him in a couple of days?

The person is giving notice from his side as per the offer letter. He is stating the mandatory period, mentioning that he will be resigning/leaving the job from 10 Jun. The company cannot simply accept the resignation with immediate effect to avoid paying gratuity. The Payment of Gratuity Act is a welfare legislation, and attempts to avoid the responsibility of paying gratuity through clever tactics will not be tolerated by the regulatory authorities.

Thank you, Mr. Nathrao. But look at it from the employer's perspective. He knows that the employee has lost interest in working in his organization. Under the circumstances, it is in his best interest to relieve the employee as soon as possible, even by paying for the notice period. Anyway, the employer cannot entrust new assignments to the resigned employee, and both the employer and employee are going to waste each other's time.

Regards,
A. S. Bhat

Asbhat,

What you say may have merit in its own way. Giving notice and quitting is a laid-down procedure. Giving him notice pay and then making him ineligible for gratuity is not the right way. All such expenses are part of the expenditure of running a business.

There is a misconception. Notice Period service is as good as the normal working period. The term N.P. is merely for the purpose of the employer looking for a suitable replacement and other handing over formalities. The professionals don't differentiate between the normal working period and the working during N.P. They deliver in the same spirit. The period of N.P. working must be included in the service period.

Pon