Gratuity Eligibility Confusion: Can I Claim It with Only 4 Active Employees?

mny

Hello All,

I have been working with an HR company for the past 6 years. Our company currently has 4 active employees and has had a total of 17 employees since its inception. Am I eligible for gratuity? Please advise.

Shrikant_pra

Once an organization engages 10 or more employees, the Act remains applicable to it even if manpower reduces below 10. As such, you are eligible to claim/receive gratuity.

mny

Thank you, Srikant.

Can I claim it now while continuing the job? Will they give the gratuity now?

dmc123

Gratuity is payable upon termination, superannuation, or separation only. Therefore, it will be payable if you are eligible at the time of resignation, that is, having completed a minimum of 5 years of continuous service in the organization.

saswatabanerjee

The company may have had 17 employees in total from the start till date. But was the number of active employees above 10 at any point? If not, then the act does not apply, and you are not eligible for gratuity.

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute