Am I Eligible for Gratuity After Resigning with a Notice Period Discrepancy?

I have resigned from my previous organization after 4 years and 6 months. It should be noted that there is a discrepancy in the number of days mentioned, as considering my notice period, it will actually be 12 days instead of 5 days. This organization operates 6 days a week, and I am seeking clarification on my eligibility to receive gratuity.

Moreover, gratuity was included in my Cost to Company (CTC) at the time of joining. Therefore, I kindly request clarification on the eligibility criteria for gratuity in my current situation.

Thank you for your attention to this matter.

Sincerely,
[Your Name]

Eligibility for Gratuity

You are not fulfilling the criteria of 5 years (read 4 years and 240 days) of continuous service to be eligible for gratuity as per the Payment of Gratuity Act (PGA).

The CTC is a different aspect. It is a calculation for the employer to know how much your employment costs the employer and to make provisions in accounts to discharge the liability when it appears. Since you have not completed 5 years of work, you are not eligible to receive gratuity.

Thank you.

Thank you, Prabhat Ji, for your prompt reply. I am attaching the judgment from the Supreme Court. Please go through it. From that, it appears that 4 years and six months are eligible for getting gratuity.

Dear Kareem, it gives me pleasure to learn about your endeavors. Unfortunately, the government has not yet enacted the New Labour Codes. The court judgments are specific to each case. You can make a claim by referencing the court order to your employer. In this particular case, the court is the appropriate forum for a decision.

Industrial Dispute Act vs. Payment of Gratuity Act

The judgment in Surendra Kumar Verma's case by the Supreme Court pertains to the Industrial Dispute Act of 1947 and not the Payment of Gratuity Act of 1972. The 4-year, six-month eligibility criteria, applicable where it is five working days per week, does not align with the current work schedule of six days per week. Hence, the required continuous service would be 240 days or more. Even if the Mettur case decided by the Madras High Court is applied, the service still appears to fall short of the eligibility criteria.