If an employee leaves an organisation after completing 4.8 years of service, is he eligible for gratuity? Vidya
From India, Delhi
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From India, Delhi
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Eligibility of gratuity is, if a person worked for any organisation with 4 year completed + 240 days ( in fifth year) is entitled for gratuity Regards Rathish.R
From India, Madras
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From India, Madras
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Dear Vidya YES, accordingly to the judgement passed by Hon’ble Madras High Court, if an employee leaves an organisation after completing 4.8 years of service, he eligible for gratuity.
From India, Gurgaon
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16From India, Gurgaon
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Based on the said judgment (Mettur Beardsell Ltd, Madras vs. Regional Labour Commissioner), the Payment of Gratuity Act has not been amended. Therefore, the entitlement for gratuity remains the same, i.e., 5 years of continuous service. The verdict in the Madras High Court cannot be made applicable to all states. The Andhra Pradesh High Court has held in P Raghavalu & Sons vs. Addl. Labour Court that a service of 4 years 11 months and 10 days will not make an employee entitled to gratuity. Similar cases have also been reported in various other states. Therefore, unless an amendment is made to make the employee eligible for gratuity by treating his 240 days of service in the fifth year as one year, it is difficult to decide on it. However, considering the payment as a social welfare measure, a liberal interpretation shall be made by the employer.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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i agree with madhu sir..the ammendment is nt yet done..we are having this confusion more often now..Its still 5 continuous year completion..
From India, Calcutta
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From India, Calcutta
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Eligibility for Gratuity in Case of Accidental Death
What should be the situation if an employee, aged 30 years, dies due to an accident outside the factory premises, and the length of service is less than five years? Is he eligible under the act to receive gratuity, and for how many years?
From India, Daman
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What should be the situation if an employee, aged 30 years, dies due to an accident outside the factory premises, and the length of service is less than five years? Is he eligible under the act to receive gratuity, and for how many years?
From India, Daman
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Gratuity Eligibility in Cases of Death or Disablement
Continuous service of five years is not necessary where the termination of employment of any employee is due to death or disablement caused by an accident or disease.
Gratuity Payment in Death Cases
For death cases, gratuity is payable to the nominees of the deceased employee for every completed year of service or part thereof in excess of six months at the stipulated rate of 15 days' wages based on the rates of wages last drawn by the employee. The qualification for continuous service is 240/120 days, and for a mine, it is 190/95 days. The 120 and 95 days are applicable to working "in excess of six months or part thereof."
It is immaterial whether an employee has worked for 22 days or more in a month. Gratuity will be calculated as if an employee is working for 26 days in a month.
Any employee, once they join the company, and during their service, if accidental death occurs, they are eligible for gratuity only for the years they served in the company, such as 3 years or 4 years, as per the Gratuity Act.
Hope this clears your doubt.
Regards
From India, Calcutta
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Continuous service of five years is not necessary where the termination of employment of any employee is due to death or disablement caused by an accident or disease.
Gratuity Payment in Death Cases
For death cases, gratuity is payable to the nominees of the deceased employee for every completed year of service or part thereof in excess of six months at the stipulated rate of 15 days' wages based on the rates of wages last drawn by the employee. The qualification for continuous service is 240/120 days, and for a mine, it is 190/95 days. The 120 and 95 days are applicable to working "in excess of six months or part thereof."
It is immaterial whether an employee has worked for 22 days or more in a month. Gratuity will be calculated as if an employee is working for 26 days in a month.
Any employee, once they join the company, and during their service, if accidental death occurs, they are eligible for gratuity only for the years they served in the company, such as 3 years or 4 years, as per the Gratuity Act.
Hope this clears your doubt.
Regards
From India, Calcutta
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Clarification on Gratuity Payment in Case of Employee's Death
Some HR professionals are under the impression that in the event of an employee's death, the employer needs to pay statutorily for the full number of years up to the retirement age. For example, if an employee's age is 30 years and he has completed 3 years of service with the company, does the company need to pay gratuity for 3 years or for 28 years? What does the act say?
Regards
From India, Daman
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Some HR professionals are under the impression that in the event of an employee's death, the employer needs to pay statutorily for the full number of years up to the retirement age. For example, if an employee's age is 30 years and he has completed 3 years of service with the company, does the company need to pay gratuity for 3 years or for 28 years? What does the act say?
Regards
From India, Daman
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How will we calculate the amount?? Formula for gratuity calculation: Basic*15/26* no. of years e.g. : Basic = Rs. 10,000/- No. of years = 15 years Gratuity = 10,000*15/26*5 = Rs. 28,846.15/-
From India, Calcutta
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From India, Calcutta
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Dear Moonis The formula for calculation of gratuity is Basic and DA/26*15* year of services.
From India, Gurgaon
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From India, Gurgaon
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Grajuity caluclation Employees Basic + D.a salayr x15 x years ( how many years she / he worked)/26 Withe warm Regards Shobana
From India, Bangalore
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From India, Bangalore
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Dear all, please tell me about, which %age or amount of Gratuity gives to the worker case. how to calculate the amount in worker case ?
From India, Delhi
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From India, Delhi
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Gratuity Eligibility Clarification
He is not eligible for gratuity. An employee should complete 5 years of service; only then is he eligible for it. If he completes 5.6 years of service and leaves the organization, it will be considered as 6 years of service, and he will get gratuity for 6 years of service.
Regards,
Derek Gomes
From India, Nagpur
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He is not eligible for gratuity. An employee should complete 5 years of service; only then is he eligible for it. If he completes 5.6 years of service and leaves the organization, it will be considered as 6 years of service, and he will get gratuity for 6 years of service.
Regards,
Derek Gomes
From India, Nagpur
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Formula for gratuity calculation: Basic*15/26* no. of years e.g. : Basic = Rs. 10000/- No. of years = 10 years Gratuity = 10,000*15/26*10 = Rs. 57692.30
From India, Calcutta
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From India, Calcutta
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Good afternoon. Can anyone help me with this query? It's urgent, so please assist me.
Gratuity Calculation Query
If the basic salary is 5000/- and the employee has completed 5.3 years of service, what gratuity amount should be given to him? Please help me.
Regards
From India, New Delhi
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Gratuity Calculation Query
If the basic salary is 5000/- and the employee has completed 5.3 years of service, what gratuity amount should be given to him? Please help me.
Regards
From India, New Delhi
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