Am I Eligible for Gratuity After 4 Years and 9 Months? How to Approach My Employer?

Hi, I worked for 4 years and 9 months in a company as a housekeeping boy in a shopping mall. They took signed resignation letters from all of us, informing us that the contract would close on 31st December 2022. By that date, I had completed 4 years and 9 months of service. However, the company is providing gratuity only to those who have completed 5 years. Am I eligible to receive gratuity, and how should I inquire about it?

As per the Payment of Gratuity Act (PGA) 1972, continuous service of 4 years and 240 days suffices for entitlement to gratuity under the act. Accordingly, you are entitled to gratuity. You may approach the employer citing the Madras High Court Judgement in Mettur Beardsell Ltd. vs. Regional Labour Commissioner (Central) & Authority under the Payment of Gratuity Act 1972. (Ref. 1998 LLR1072)

Please refer to the Madras High Court Judgment in Mettur Beardsell Ltd. vs. Regional Labour Commissioner (Central) & Authority under the Payment of Gratuity Act 1972 (Ref. 1998 LLR1072). Accordingly, please submit your claim to your employer. If your employer refuses, please escalate your grievance to the Labour court.

Dear Prashanth, Gratuity is payable under the Payment of Gratuity Act, 1972. Gratuity is paid to employees who have completed five or more years of service in their respective companies. Section 4(2) of the act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. The Madras High Court in the Salem Textile Case held that an employee who has completed 4 years and 240 days is eligible for gratuity.

Dear Alok Sir, Am I eligible to claim gratuity as you said?