Am I Eligible for Gratuity After 9 Years in a Private Limited Company? Seeking Legal Insights

Sir,

I want the legal section of the same.

I have worked in a Private Limited company for 9 years. Am I eligible for Gratuity?

Please let me know.

Hi,

Yes, you are eligible for gratuity. Anyone working in the organization for 5 years or more will be eligible for gratuity.

Dear Chandresh,

In Section 1 of the Gratuity Act, it states that if your company employs more than 10 people, then gratuity is applicable. Therefore, you are eligible for gratuity.

Regards,
Rajnish

If the employer is denied the same, please provide me with the procedure for it.

Regards, Chandresh

Hi Chandresh,

As per your email, you mentioned that you have worked for 9 years. During these nine years, did you have a salary structure as a consultant (i.e., consolidated pay) or a salary structure including basic salary, HRA, and PF, etc.?

If your salary structure falls under option 2, then you are eligible for the criteria.

The gratuity amount is calculated as follows:
Basic/26 * 15 * number of years.

Please refer to the Gratuity Act, 1972, available on the website.

Regards,
Suresh

Dear Panchal,

Whether it is a Private Limited, Partnership firm, or Proprietorship, the Gratuity Act will apply if they employ more than 10 members. The designation is not the issue. If anybody is receiving a fixed amount as a Consultant's salary, then they are not eligible for Gratuity if they have completed more than 5 years as a Consultant or Advisor, etc.

In other cases, with a designation as Consultant or any other designation, if they provide a salary slip or obtain a signature in the salary register showing Basic+DA+HRA+Conveyance, and the employee has completed more than 5 years, then they are eligible for Gratuity. For example, if the total service is 5 years 6 months and 10 days, the calculation of gratuity is for 6 years.

Regards,
Rapolu HS

Dear Member,

If the gratuity is denied, a person can make a claim before the Commissioner for Gratuity, not before the labor court. The labor court can resolve industrial disputes as defined under the schedules of the ID Act.

Murugavel B.
Chennai

Dear Friend,

Yes, you are eligible. If any employee crosses 5 years of continuous service, they are eligible for Gratuity under the Gratuity Act.

Thanks & Regards,

B. RAVI MURUGAN

If you have worked continuously for 5 years, you will become eligible to receive gratuity. The term "continuous service" includes 240 days of physical attendance, which encompasses all paid and weekly holidays.

Thank you.