Gratuity against 4 years 11 months 24 days working

Sir/Madam,
I completed 4 years 11 months 24 days in public sector company in outsource basis. In four years i take only 12 Casual leave & 6 medical leave. Fifth year also i taken 6 casual leave and 5 medical leaves. More than 700 people working in this firm. 5 days working. How to approach HR for claim gratuity?. I hear about 4 years 240 days rule. If you have any court order against this order please share me & guide me to approach our HR team.

Thanks & Regards,
Resmy K V

Dear Resmy,
You are eligible to claim gratuity for the entire service of 5 years as per S.2-A of the PGA,1972 since you completed 4 years and 11 months of continuous Service which includes the leave of absence you mentioned.

Dear Resmy,

You are eligible for Gratuity ,

Gratuity is an amount paid by an employer to its employees for rendering their services for equal to or more than 5 years.

usually 4 year and 240days considering 5 years of service , in this case you are served 4 years 11 months so you are eligible for gratuity.

refer the attachment for gratuity act

best regards

It is better to submit an application in Form I to the employer for claiming gratuity. If the Gratuity is denied then you may approach controlling authority i.e. Assistant Labour Commissioner (Central) if you were working in Central Public Sector Undertaking. If you were working with State Public Sector undertaking then approach to the Assistant labour Commisioner of concerned state to decide on the issue of gratuity by filing an application in Form N

As you have mentioned you have worked on outsourced basis, if you had been employed through a contractor then you need to apply to your contractor in Form I and not the Principal employer. if contractor failed to pay then you may approach controlling authority. You may make contractor and Principal employer party while submitting application before the Controlling Authority.

As per Section 4(1) of The Payment of Gratuity Act, 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. Accordingly the Payment of Gratuity Act supports completion of 5 years of service to get gratuity. However, in certain High Court rulings like that of Madras High Court, Kerala High Court have been a different interpretation to the term continuous service and accordingly employees who have worked for 4 years and 240 days in the fifth year are made entitled to gratuity.