Hi, I am joined a MNC in sep 2007 as a trainee after 6 months I came into roles and my last working day with this company is on jan 2013 can i elgible for gratuity Thanks in advance please reply
From India, Hyderabad
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1From India, Hyderabad
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If you have completed 240 working days in the last year, i.e., from March 2012 to January 2013, then you are eligible for gratuity. As per the Payment of Gratuity Act, an employee is eligible for gratuity only after completing five years. However, there have been many judgments given by High Courts from time to time stating that an employee is eligible for gratuity if they have completed 240 days of work in the last year of their service.
From India, Lucknow
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From India, Lucknow
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Thank you for the valuable reply. Yes, sir, I have completed almost 9 months, approximately 270 days, in my 5th year. On which act can I get my gratuity? Can you explain so I can check with my HR team?
Thanks in advance.
Regards,
Sudhakar
From India, Hyderabad
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Thanks in advance.
Regards,
Sudhakar
From India, Hyderabad
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Dear Sudhakar, Please find attached the Madras High court judgement regarding Gratuity Payment. Regards, RK
From India, Mumbai
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From India, Mumbai
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Dear Sudhakar, Here is the attachment. Which I have missed in the previous post. As per the Payment of Gratuity Act. RK
From India, Mumbai
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From India, Mumbai
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Dear friends, In support, use the attached Supreme Court judgment and Tribunal judgments on this "240 days" stipulation for gratuity. kumar.s.
From India, Bangalore
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From India, Bangalore
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Yes sudhakar.. 240 Days should be excluding sundays and Holidays. The definition also says that continuous service of 5 Years and a minimum of 240 days in every year. RK
From India, Mumbai
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From India, Mumbai
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"Leave with Wages" is also considered as working days. Suppose you have availed 20 days of paid leave and worked for 220 days, then this will be considered as 240 working days.
Regards,
RK
From India, Mumbai
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Regards,
RK
From India, Mumbai
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Clarification on Service Duration for Gratuity
Why do you need to use the '4 years 240 days' principle to claim 5 years of service? Since you joined in September as a trainee and were confirmed after the trainee period ended, your service should count from September 2007. Therefore, you completed 5 years of service by September 2012.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Why do you need to use the '4 years 240 days' principle to claim 5 years of service? Since you joined in September as a trainee and were confirmed after the trainee period ended, your service should count from September 2007. Therefore, you completed 5 years of service by September 2012.
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Dear Sudhakar, Please mention the date of Joining to the company: Trainee and On roll, Exact date of leaving.. RK
From India, Mumbai
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From India, Mumbai
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Dear Sudhakar, tell them that Sec. 4(1) of the Payment of Gratuity Act 1972 prescribes 5 years of continuous service for being eligible to claim gratuity. You joined the service in September 2007 and left it in January 2013, thus completing a continuous service of 5 years and 3 months. Thus, you have fulfilled the eligibility criterion under Sec. 4(1).
Definition of Continuous Service
Sec. 2-A defines what is continuous service. While defining continuous service, it includes even the following periods of absence in service as part of the continuous service:
- the period of lay-off
- the period of leave with wages
- the period of absence due to temporary disavowment
- the period of maternity leave (in the case of female employees)
Thus, nowhere in either Sec. 4(1) or Sec. 2-A have excluded the period of training from being part of continuous service. When even certain periods of absence were made part of continuous service, excluding the period of training during which you were on duty was violative of the provisions of the Gratuity Act.
You can present your case based on the above lines.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Definition of Continuous Service
Sec. 2-A defines what is continuous service. While defining continuous service, it includes even the following periods of absence in service as part of the continuous service:
- the period of lay-off
- the period of leave with wages
- the period of absence due to temporary disavowment
- the period of maternity leave (in the case of female employees)
Thus, nowhere in either Sec. 4(1) or Sec. 2-A have excluded the period of training from being part of continuous service. When even certain periods of absence were made part of continuous service, excluding the period of training during which you were on duty was violative of the provisions of the Gratuity Act.
You can present your case based on the above lines.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Gratuity is payable for the training period also. This subject, along with other issues on gratuity, was discussed on citeHR a few years back as well. Please go through this link: https://www.citehr.com/20184-applica...act-labor.html.
You can also refer to the Allahabad High Court judgment on this issue. The test is attached.
Regards,
Kumar S.
From India, Bangalore
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You can also refer to the Allahabad High Court judgment on this issue. The test is attached.
Regards,
Kumar S.
From India, Bangalore
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Thank you very much for your valuable suggestions and points, which have given me more confidence to get my gratuity. I joined the company as a trainee, and after 6 months, I was confirmed in the role.
- Date of Joining: 24th September 2007
- Date of Confirmation: 24th March 2008
- Last Date: 9th January 2013
Thanks in advance,
Regards,
A. Sudhakar
From India, Hyderabad
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- Date of Joining: 24th September 2007
- Date of Confirmation: 24th March 2008
- Last Date: 9th January 2013
Thanks in advance,
Regards,
A. Sudhakar
From India, Hyderabad
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As per your date of confirmation, the working period is 4 years, 9 months, and 5 days. However, the judgment for 240 days in the fifth year states that he/she should have worked for 10 months and 18 days. Please call me at [Phone Number Removed For Privacy Reasons] so that I can provide you with clear details.
Regards,
RK
From India, Mumbai
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Regards,
RK
From India, Mumbai
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Research Paper on 240 days-Qualifying period for gratuity under Payment of Gratuity Act.pdf