Dear Sir, I joined the organization in Bangalore in February 2007, and my last working day would be September 30, 2011. My company is mentioning that I would not be eligible as I would be completing only 4 years and 164 days, not the required 190 days as per the gratuity law. However, I would be completing 4 years and 227 days by September 30, 2011 (including Saturdays and Sundays as holidays).
Please let me know whether Saturdays and Sundays are not considered when calculating the working days for an IT company (assuming a 5-day workweek).
Regards,
Satish
From India, Bangalore
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Please let me know whether Saturdays and Sundays are not considered when calculating the working days for an IT company (assuming a 5-day workweek).
Regards,
Satish
From India, Bangalore
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It is correct that the employee must complete 5 years of service in order to be eligible for Gratuity payment.
However, in one case, the Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year, i.e., the fifth year, will be deemed to have continued in service for one year as stipulated by section 2A of the Act. Accordingly, an employee who has put in his service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of 5 years and is entitled to Gratuity.
In your case, your HR is right, and you are not eligible for Gratuity payment. 240 days of continued service include the actual working days for the employer.
Regards,
Kumar Anand
HR - SAMSUNG
From Korea
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16However, in one case, the Madras High Court has held that an employee rendering continuous service for a period of 240 days in a year, i.e., the fifth year, will be deemed to have continued in service for one year as stipulated by section 2A of the Act. Accordingly, an employee who has put in his service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of 5 years and is entitled to Gratuity.
In your case, your HR is right, and you are not eligible for Gratuity payment. 240 days of continued service include the actual working days for the employer.
Regards,
Kumar Anand
HR - SAMSUNG
From Korea
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The judgment of the Honourable High Court of Madras has a binding effect on the Authorities under the Payment of Gratuity Act in Tamil Nadu. If the High Courts of other states have passed similar judgments, then the Authorities under the Payment of Gratuity Act in those states are bound by those judgments. Otherwise, the Madras High Court Judgment can be cited to persuade the Authorities to follow that decision.
With regards,
From India, Madras
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With regards,
From India, Madras
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dear it is your company paying gratuity after completion of 4 years and 190 days in fifth year but legally 5 years service is must to get entitle for gratuity.
From India, Delhi
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From India, Delhi
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Dear Friend, You have to complete 240 days in the fifth year to be eligible for Gratuity. Best Wishes, Vasant Nair
From India, Mumbai
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From India, Mumbai
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Gratuity Transfer Between Companies
If an employee changes companies after 5 or 6 years, will the gratuity service continue with the new company, or will it stop with the previous company? Do we need to apply for gratuity after leaving the company, or can it continue with the new company?
Regards,
Cherry, HR
From India, Nagpur
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If an employee changes companies after 5 or 6 years, will the gratuity service continue with the new company, or will it stop with the previous company? Do we need to apply for gratuity after leaving the company, or can it continue with the new company?
Regards,
Cherry, HR
From India, Nagpur
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Gratuity Payment Dispute
I have read in CiteHR and am writing to you regarding the Payment of Gratuity Act. I joined a Pvt Ltd company on 1st June 2005 as a Trainee Surveyor, and as per the Appointment Letter, the trainee period was for a duration of 1 year. I resigned and was relieved from the job on 30th November 2011 after fulfilling a 1-month notice period.
Now, my company is refusing to pay me the gratuity, stating that I was a trainee until February 2007 (the date on which I obtained the surveyor and loss adjuster license), and therefore, I did not complete 5 years in the job, which is the basic requirement for the payment of gratuity.
In response, I have reminded them that as per the Appointment Letter, I was a trainee for a period of 1 year, and nowhere was it mentioned that I would be considered a trainee until I passed the surveyor exam and obtained a license from IRDA.
However, even after my above reply, the company is still not willing to pay me the gratuity.
Please advise me on the above situation to determine whether I am eligible for gratuity or not. I have not found anywhere that the trainee period will not be considered for the calculation of gratuity. Additionally, the employer is deviating from the terms of the Appointment Letter.
Thank you in advance.
Regards,
Manoj
From United Arab Emirates, Abu Dhabi
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I have read in CiteHR and am writing to you regarding the Payment of Gratuity Act. I joined a Pvt Ltd company on 1st June 2005 as a Trainee Surveyor, and as per the Appointment Letter, the trainee period was for a duration of 1 year. I resigned and was relieved from the job on 30th November 2011 after fulfilling a 1-month notice period.
Now, my company is refusing to pay me the gratuity, stating that I was a trainee until February 2007 (the date on which I obtained the surveyor and loss adjuster license), and therefore, I did not complete 5 years in the job, which is the basic requirement for the payment of gratuity.
In response, I have reminded them that as per the Appointment Letter, I was a trainee for a period of 1 year, and nowhere was it mentioned that I would be considered a trainee until I passed the surveyor exam and obtained a license from IRDA.
However, even after my above reply, the company is still not willing to pay me the gratuity.
Please advise me on the above situation to determine whether I am eligible for gratuity or not. I have not found anywhere that the trainee period will not be considered for the calculation of gratuity. Additionally, the employer is deviating from the terms of the Appointment Letter.
Thank you in advance.
Regards,
Manoj
From United Arab Emirates, Abu Dhabi
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx