Gratuity Confusion: Am I Entitled After 4.9 Years of Service? Seeking Guidance

Hello,

I was in the company from 2/2/2013 to 15/11/2017. My last day of the job was 15/11/2017. The company did not release my Gratuity amount based on a 5-year policy, even though the company does not have any policy for Gratuity. I read somewhere that an employee is entitled to get Gratuity if he/she completes 4.9 years of continuous service. What action should be taken? Can anybody provide me with that ruling or amended clause? Please guide me.

Eligibility for Gratuity Payment

As a rule, it is 5 years of continuous service that entitles you to automatic gratuity payment if applicable to your company. However, if a person resigns, superannuates, or is terminated in the fifth year, 240 days of service in the 5th year can be argued to be a full year. Since you are the aggrieved party, you may submit a diplomatic letter/email stating that you are eligible to be paid gratuity as per the Act. If the company responds questioning your eligibility for payment, you may take further action and cite the judgments that were in favor of the petitioner/aggrieved employee.

Thanks and Regards

Yes, you are right, AKS. Find the enclosed judgment to support your claim.

Sethupathy
Excellent HR Services, Erode

As the definitions of continuous service in the Industrial Disputes Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act as well. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under section 4(2). This means 4 years plus 240 days in the fifth year of continuous service.

Thanks & Regards,

Sumit Kumar Saxena