Hi, I have attained 58 years of age and will be retiring after completing 4 years and 3 months of service in the current company. In such a situation, am I eligible for gratuity? I request expert advice on this issue. Thanks.
The Payment of Gratuity Act, 1972, states that an employee is eligible to receive gratuity only after working with an organization for at least five years. The employee is entitled to the gratuity amount upon superannuation, retirement, or resignation. In your case, it is 4.3 years, and hence you are not eligible for gratuity.
As per Sec. 4 of the Payment of Gratuity Act, 1972, an employee is eligible to receive gratuity on termination of his or her employment after he or she has rendered continuous service of not less than five years (a) on his superannuation; or (b) on his retirement or resignation; or (c) on his death or disablement due to accident or disease; provided that the continuous service of five years is not necessary where the termination of an employee is due to death or disablement.
Eligibility for Gratuity
However, the Madras High Court in Mettur Beardsell Vs. Regional Labour Commissioner (Authority under the Act) and Others has held that even if an employee works for 4 years and 240 days in the fifth year, he can be eligible for payment of gratuity under the Act. The Act says that it is five years of "continuous service" as defined under Sec. 2A of the Act.
Hence, with 4 years and 3 months, you will not be eligible for gratuity under the Act.
You are not eligible for gratuity since you have not worked for five years before the cessation of services.
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