We have a typical case in Gratuity. Would request to please advise. An employee of Manager designation has worked with us for 4 years 11 months and 12 days. Is he eligible for payment of gratuity?
Somraj Dey
Dy Manager HR
From India, New Delhi
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Somraj Dey
Dy Manager HR
From India, New Delhi
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He/She shd have completed continues service of 5yrs (Continues service means 240 days in each yr)of service.
From India, Coimbatore
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4From India, Coimbatore
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Yes, he is eligible for gratuity. If the payment of gratuity is applicable, then more than 6 months will be rounded. If the act is not applicable, it will not be calculated. So, first, confirm whether the act is applicable in your company or not. Generally, a company with more than 10 employees is eligible for the payment of the gratuity act.
Rashmi
From India, Ahmadabad
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Rashmi
From India, Ahmadabad
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You can pay gratuity even if he is not eligible. I don't think you will get a clear answer from this group as it depends on how you interpret the law, so it would be better if you make your interpretation and keep it lenient towards the employees.
Regards
From India, Delhi
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Regards
From India, Delhi
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Dear All,
I agree with the comment of Vidhya that if a person continuously works for 4 years and 240 days, then he is eligible for Gratuity.
Regards,
ALPESH THAKKAR
ASST. MANAGER - HR
ADVANCED SYSTEK PVT. LTD.
From India, Ahmadabad
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I agree with the comment of Vidhya that if a person continuously works for 4 years and 240 days, then he is eligible for Gratuity.
Regards,
ALPESH THAKKAR
ASST. MANAGER - HR
ADVANCED SYSTEK PVT. LTD.
From India, Ahmadabad
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Hi, Person who has worked 4 yrs. & 240 days is eligible as he can claim a leave of rest 20 days (in case of 4 yrs. 11 months & 11 days.). Rgrds,
From India, Calcutta
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From India, Calcutta
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Dear all He is eligible for Gratuity if has worked 4 years and 240 days in the fifth year. For your ref I am enclosing a judgment in this regard S.Sethupathy Excellent HR Services Erode
From India, Selam
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From India, Selam
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Hi,
There have been various discussions on this topic earlier. One of the members had mentioned a court ruling (I think Chennai-based) where the employee was granted gratuity on having completed 240 days in the 5th year and not actually completing 5 years. Please refer.
When there is confusion regarding the interpretation of an Act, I personally suggest that it depends on the management: i.e., if they prefer to have a flexible or a rigid approach within the realms of the Act.
Regards
From India, Visakhapatnam
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There have been various discussions on this topic earlier. One of the members had mentioned a court ruling (I think Chennai-based) where the employee was granted gratuity on having completed 240 days in the 5th year and not actually completing 5 years. Please refer.
When there is confusion regarding the interpretation of an Act, I personally suggest that it depends on the management: i.e., if they prefer to have a flexible or a rigid approach within the realms of the Act.
Regards
From India, Visakhapatnam
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Mr Sethupathy seems to have read my mind and has posted his attachment while I was writing my reply. Thaanks Mr Sethupathy. Regards
From India, Visakhapatnam
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From India, Visakhapatnam
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He will be eligible for gratuity. I am working in BHEL and here the gratuity is limited to Rs. 10 lakhs. (Basic pay + DA) Rules 1.Service up
From India, New Delhi
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From India, New Delhi
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He will be eligible for gratuity. I am working in a PSU where the gratuity is limited to Rs. 10 lakhs (Basic pay + DA).
Rules:
1. Service up to 1 year = 2 months' emoluments.
2. Service after 1 year but before the 5th year = 6 months' emoluments.
3. Service after 5 years but before 20 years = 12 months' emoluments.
Regards,
Manju
From India, New Delhi
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Rules:
1. Service up to 1 year = 2 months' emoluments.
2. Service after 1 year but before the 5th year = 6 months' emoluments.
3. Service after 5 years but before 20 years = 12 months' emoluments.
Regards,
Manju
From India, New Delhi
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Hi Som,
I would like to inform you that after completion of five years of service, an employee will be entitled to gratuity. In some cases, if an employee has completed 4 years and 240 days of continuous service and can prove this in the High Court, they will be eligible for gratuity for five years.
You can refer to the attachment of Sethupathy for more information.
Thanks and Regards,
Sunil Sharma
V3S Group
Email: ssmbahr@gmail.com
From India, New Delhi
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I would like to inform you that after completion of five years of service, an employee will be entitled to gratuity. In some cases, if an employee has completed 4 years and 240 days of continuous service and can prove this in the High Court, they will be eligible for gratuity for five years.
You can refer to the attachment of Sethupathy for more information.
Thanks and Regards,
Sunil Sharma
V3S Group
Email: ssmbahr@gmail.com
From India, New Delhi
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Hi,
He is eligible for gratuity if the employee continuously worked for 4 years and 8 months in the organization. There are decisions from the Chennai High Court stating that gratuity can be paid for a period of 4 years and 6 months as well. Therefore, we can consider 4 years and 8 months as the eligibility criteria for gratuity.
Nimesh Paul
Stringz - HR Consulting, Staffing, Recruiting in Kerala
[http://www.stringz.in](http://www.stringz.in)
From India, Kochi
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He is eligible for gratuity if the employee continuously worked for 4 years and 8 months in the organization. There are decisions from the Chennai High Court stating that gratuity can be paid for a period of 4 years and 6 months as well. Therefore, we can consider 4 years and 8 months as the eligibility criteria for gratuity.
Nimesh Paul
Stringz - HR Consulting, Staffing, Recruiting in Kerala
[http://www.stringz.in](http://www.stringz.in)
From India, Kochi
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Dear All,
In this case, he is eligible for gratuity as he has completed more than 240 days in his fifth year of service. As per the Gratuity Act, if he serves more than six months, it is rounded off to a full year. Therefore, he has to be paid the amount of gratuity.
Mendonca
From India, Pune
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In this case, he is eligible for gratuity as he has completed more than 240 days in his fifth year of service. As per the Gratuity Act, if he serves more than six months, it is rounded off to a full year. Therefore, he has to be paid the amount of gratuity.
Mendonca
From India, Pune
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Dear All, Yes it is applicable,4 year and 240 days in the fifth year,each year 240 days should be considered.
From India, Jhajjar
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From India, Jhajjar
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Employees thosse has worked 4 yrs. & 240 days is eligible for payment of Gratuity as Judgement of Madras High court. (in case of 4 years complete and fifth year if he has complete 240 days.
From India, Tiruppur
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From India, Tiruppur
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Yes I agree with Ms Rashmi For 6 months and above full year to be considered for gratuity calculation. -prodigytechnologies.in
From India, Pune
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From India, Pune
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Dear all Gratuity is payble if continuous service is 4 years and 240 days (which means completed 5 years) as per the Act and decision of Madras High Court. Regards K.Ramachandra Bangalore
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He will not be eligible for Gratuity as per the provisions of the Payment of Gratuity Act, 1972.
An employee to be eligible for Gratuity should, in the first instance, complete continuous service of 5 years or more.
In the instant case, he has completed service of 4 years 11 months & 12 days. The question of 240 days of service, as indicated in subclause (ii) of clause (2)(a) of Section 2 A, to confer the status of "deemed to be in continuous service," will not be applicable while deciding the initial qualifying period of 5 years. The judgment quoted by one of the members is of the Chennai High Court and would not be applicable in Delhi. The directions given by the Chennai High Court can be challenged in the Supreme Court of India. Any final interpretation of this issue can only be decided by the Supreme Court of India. However, until such time this issue is decided by the Supreme Court, we have to go by the minimum initial qualifying period as laid down in the Act, irrespective of any other consideration.
Regards,
Sudhir Savant
Cell No: 08888409104
From India, Pune
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An employee to be eligible for Gratuity should, in the first instance, complete continuous service of 5 years or more.
In the instant case, he has completed service of 4 years 11 months & 12 days. The question of 240 days of service, as indicated in subclause (ii) of clause (2)(a) of Section 2 A, to confer the status of "deemed to be in continuous service," will not be applicable while deciding the initial qualifying period of 5 years. The judgment quoted by one of the members is of the Chennai High Court and would not be applicable in Delhi. The directions given by the Chennai High Court can be challenged in the Supreme Court of India. Any final interpretation of this issue can only be decided by the Supreme Court of India. However, until such time this issue is decided by the Supreme Court, we have to go by the minimum initial qualifying period as laid down in the Act, irrespective of any other consideration.
Regards,
Sudhir Savant
Cell No: 08888409104
From India, Pune
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What is the correct answer to this question, so that the same can be considered in the policy.
From India, Mumbai
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From India, Mumbai
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Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years. Provided that completion of continuous service of five years shall not be necessary where the termination of the employment is due to death or disablement.
From India, Sirsa
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From India, Sirsa
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I agree with Mr. Sethupathy. When the provisions of any Act are not clear, one should always refer to the judgments passed in this respect by the competent courts, which is always safe and appropriate as well.
From India, Bangalore
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From India, Bangalore
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if his service more then 4.6 years we have consider as 5 years According me he is eligible close the issue with simple logic dont take it for long time for unnecessary problems
From India, Bangalore
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From India, Bangalore
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if his service more then 4.6 years we have to consider as 5 years According to me he is eligible, close the issue with simple logic dont take it for long time for unnecessary problems
From India, Bangalore
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From India, Bangalore
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Less than 5 years service - Eligibility for payment of gratuity.pdf
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