Gratuity period eligibility - worked in a private company for 4 years, 11 months & 17 day

sandesh-kajrolkar
Dear Expert team, I had worked in a private company for 4 years, 11 months & 17 days. am I eligible for gratuity?
If Yes, is there any legal document available from Gov as my Company registered in WB & office in Pune?
umakanthan53
Yes; you are eligible for gratuity as per the ratio decidendi of the interpretation of sec.2-A of the PG Act,1972 by the Madras High Court in Mettur Beardsell Ltd case.

That if an employee completes 240 days of continuous service in the fifth year of service in the same establishment, he is eligible to gratuity under the Act is the ruling of the Madras High Court. There is no contrary judgment by any other High Court on this issue so far. Moreover, as PGA,1972 is a Central Act, the decision of a particular High Court will hold good across the country in the absence of a contrary decision by any other Court on the same issue.
suresh2511
Dear Sandesh,
As our Senior Member Umakanthan Sir has stated rightly that you are eligible for Gratuity Payment.
However, it depends from company to company. Some companies follow Court Order some go as per Payment of Gratuity Act, 1972 as it has not been amended yet.
If you are having good relation with the company, they may consider your case. You may require to give an application with a request to consider your case sympathetically giving a court order reference.

Suresh
umakanthan53
Sorry, Suresh; no employer can substitute his own interpretation with the ratio decidendi of a case law and decide the issue in utter disregard of a High Court's ruling. If one dares to do so, he would be penalised with cost and the burden of interest for the unpaid period by the Controlling Authority under the PGA,1972 later if a claim is filed by the aggrieved employee. As the Madras High Court judgment is as a result of an interpretative analysis of the existing definition of the term ' continuous service ' u/s 2-A of the Act, it requires no amendment. Moreover, this judgment is in sync with the interpretation of the similar term u/s 25-B of the ID Act,1947 by the Supreme Court earlier in several cases. In case of refusal by the employer to pay gratuity, the poster can certainly get it with interest by filing a claim under the Act.
PRABHAT RANJAN MOHANTY
Dear Sandesh,

The first question why did you left the service before completing of 5 years term as mandate under the law for eligibility of Gratuity.

Your employer may not consider you eligible for gratuity, because you have not completed five years of service rather worked 4 years 11 months 17 days.

You can approach your employer with the Madras High Court judgement in Mettur Beardsell Ltd case, if not considered for gratuity.
sumitk.saxena
You are eligible for payment of gratuity , the eligibility conditions of employment should be 4 years+240 days whch is equals to 5 years of service.
Thanks & Regards,
from,
Sumit Kumar Saxena
PRABHAT RANJAN MOHANTY
Dear Umakanthan Sir,
Just want a simple clarification and interpretation, the definition under the act
(b) "completed year of service" means continuous service for one year;
[2] [(c) "continuous service" means continuous service as defined in section 2A;]

Section: 4 of Payment of gratuity. (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -

The interpretation is : Working for not less than five years and all the completed years of service should be continuous nature, if wrong correct me.
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