Can I Claim Gratuity After 4 Years and 5 Months of Service? Seeking Your Advice

Dear Friends,

On 25th October, I left my last organisation where I worked for more than 4 years. My date of joining was 24th May 2003, and my total working period was approximately 4 years and 5 months. Can I claim for gratuity? Please give me your suggestions. Do I deserve it or not?

I am eagerly waiting for your response.

Regards,
Vineet Mittal

Dear friend,

No, you cannot claim gratuity because as per the Payment of Gratuity Act, you must have served a full five years to be eligible for claiming gratuity. Only in the case where the employee passes away before completing 5 years, their nominee can claim the gratuity.

Seniors, please correct me if I am wrong.

Regards,
Guru

Dear Vineet,

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease. Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Therefore, you do not qualify for Gratuity.

Thanks & Regards,
Raj

Dear guru,

There is one more rule to note: if an employee completes 4.5 years in the company, at the discretion of management, they can receive gratuity after 4.5 years. However, this is solely at the discretion of management.

Regards,
Vineet

Dear Mittal,

Yes, you are correct. If your management is ready to release your gratuity, then you can get it for sure. I have seen a case where an employee had worked for 4 years and 11 months. In simple terms, it is left for your management to make a decision on this. So, go ahead and try. All the best.

Regards,
Amith R.

Dear Mittal,

The law stipulates a minimum period of five years, but if the company wishes to pay for a lesser duration of service, it can do so. According to the Gratuity Act, a year consists of 240 days. Therefore, if someone has worked for, say, 10 or 11 months, they can claim gratuity. The rationale behind this is that the act specifies that if the last year of service is more than 6 months, it must be considered as one full year. However, in cases where the years of service amount to 4 years and a few months, it is necessary for the employee to have worked for more than 240 days. Typically, such cases end up in court for a final decision.

In your case, with only 4 years and 5 months of service, you do not qualify for gratuity by any means or standards.

Regards,
Nilendra

Hi there,

I joined the company on June 1, 2003. Now, I have an offer from another company, and my notice period for my current employer is 3 months. As I am approaching 5 years of completion, I cannot make a decision. I have two questions regarding this situation:

1. Can I resign from the current company in March so that I will be relieved in June '08, completing 5 years without compromising on gratuity?
2. Should I wait for the 5-year completion and resign in June '08 to claim gratuity?

Please guide me.

Thanks,
Rajendra