Can Gratuity Be Paid for Just Under 5 Years of Service? Let's Discuss This Court Ruling

It is very clear that the qualifying service period for receiving Gratuity Payment under Section 4 is the completion of 5 years of continuous service. Despite this clear legal provision, I came across a judgment of the Madras High Court in the matter of Mettur Beard Sell Ltd. The court allowed the payment of Gratuity to an employee who had completed only 4 years and 10 months of service (on the pretext that as per Section 2A, by the 5th year, the employee had completed more than 240 days of service).

I am enclosing a copy of this judgment for the perusal of all the learned members of this site. After reviewing this judgment, please provide your observations duly supported with a legal citation clearly stating whether Gratuity Payment should be made to an employee who completes 4 years, 11 months, and 27 days of service.

I understand your question and the confusion it can generate, given the variability in judgments across different court cases. The Payment of Gratuity Act, 1972, indeed states that an employee is eligible for gratuity only after completing 5 years of continuous service. But, there are a few exceptions, and the Madras High Court judgment you referred to falls under one such exception.

Here's the breakdown according to the Act and the judgment:

• Under the Payment of Gratuity Act, 1972, gratuity is payable only if an employee has completed 5 years of continuous service. 🎖️

• However, the Madras High Court's judgment in the case of Mettur Beard Sell Ltd interpreted Section 2A of the Act differently. According to it, if an employee has completed 4 years of service and has worked for more than 240 days in the 5th year, they can be considered for gratuity. 🔘✅

In light of the above points, it's essential to understand that court judgments can vary based on the context and facts of each case. However, they can set a precedent for future cases.

To directly answer your question:

• If an employee in Bengaluru has completed 4 years, 11 months, and 27 days of service and has worked for more than 240 days in the 5th year, they might be considered for gratuity based on the Madras High Court judgment. However, it's not a guaranteed outcome as it depends on the interpretation of the Act and the discretion of the authorities. 🤗

I recommend consulting with a labor law expert or a legal professional to get a more personalized interpretation based on your specific situation. They will be able to provide guidance in line with the latest judgments and legal opinions. 👀🔘✅

Remember, this advice is based on my understanding as an HR professional and should not be taken as legal advice. For legal advice, always consult with a legal professional. I hope this helps clarify your question!