Gratuity eligibility - total tenure would be 4 years 241 days - (Govt. Labor laws/court order) where it is mentioned?

anurag16
Hello all, I joined my organisation on 21/07/2014 and my last working day is 19/03/2019 (I had no breaks in my service).
The organisation follows 5 working days/week model. So, the total tenure would be 4 years 241 days.
Could you please tell me whether I would be eligible for Gratuity payout? If yes could you please also refer me a legal document (Govt. Labor laws/court order) where it is mentioned?
Rahul Chhabra
Dear Anurag,
One needs to complete a minimum continuous service of 5 years to be eligible for gratuity; unless the company's policy or standing orders mentions a continuous service of 4 years and 240 days to be eligible for gratuity. I suggest your thoroughly check your appointment letter, company policy/ standing orders if there is a mention of tenure eligibility for gratuity.
If not, you can refer to the case of Mettur Beardsell, wherein the Madras High Court passed a judgement that an employee having worked for more than 240 days in the fifth year will be eligible for gratuity.
Regards
Rahul
umakanthan53
Since your establishment adopts 5 days work per week, as per the ratio decidendi of the judgment cited above, if you have worked for 190 days during the fifth year of service it would be treated as continuous service u/s 2-A(2)(a)(i) of the PG Act,1972.
Therefore, in any case, you are eligible to gratuity under the Act.
Rahul Chhabra
For sure, there is a a lot of debate on Gratuity eligibility. Section 4 of PoG act clearly mentions eligibility to be 5 years of continuous service. Though the citations favoring 4 years and 240 days belong to the respective High Court of TN and Kerala; and can't find any Apex court judgement on the same. Hence, this may apply to the state of TN and Kerala; however not sure about the other states till there is an apex court decision.
Regards
Rahul
Aks17
Hi
Since you are the aggrieved party you may request the employer to provide you with the Gratuity for the service rendered. Wait for his answer before you take the next step. Check if he is citing any law or policy to the contrary before you take any legal action at this stage. You may as well challenge the company if they refuse to pay you and inform that you may have to go the Labour Comm to get your dues. Your lawyer will help in filing the papers with the relevant case laws. The fifth year completion is an issue as far as eligibility to the payment is concerned though 240 days criteria have been incorporated and also cited in the judgments.
Nothing to lose, go ahead and start with a request or two before embarking on the legal process.
Thanks and Regards
shyamalishoremisra
if during fifth year your no. of working becomes 240 days or more, one become eligible for gratuity as new amendments
R.N.Khola
If it is so then you are requested to supply the copy of amendment.
R N KHOLA
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