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Dear Experts, Please help me in, Is Gratuity is payable to a Employee who has completed 4 Years 7 Months & 7 Days (Joined on 01.08.2009 & Relived on 07.03.2014)? Arati Mundaye
From India, Mumbai
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Hi Arati, for eligibility of gratuity, one need to complete minimum of 5 years not even 1 day less as per date of joining and then only the employee will be for it. hope I have solved your query.
From India, Delhi
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AR
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Any employee who has completed 4 years plus a minimum of 240 days in the last year (fifth) is eligible for the Gratuity Act. Now, as per your query, he/she is not eligible for Gratuity payable.

Thank you,
JN Modi

From India, New Delhi
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rkn61
651

The concerned employee must have completed continuous service of five years to become eligible to receive payment of gratuity as per the Payment of Gratuity Act. However, as this is a payment of gratuity, there is no restriction on the part of the employer for making payment.

Thanks,
R K Nair

From India, Aizawl
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Eligibility for Gratuity Under The Payment of Gratuity Act, 1972

As per paragraph 4 of The Payment of Gratuity Act, 1972, an employee becomes eligible for gratuity on completion of 5 years of continuous service. To calculate one year, please refer to Para 2A (2) (a). According to this, if an employee completes 4 years and 240 days of continuous service, he is eligible for gratuity.

Regards,
Mohan Kumar

From India, Bangalore
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Hi Folks, can you please let me know how the gratuity amount will be calculated and how much the employee will benefit after completion of the gratuity period and still continuing with the company?

Thanks & Regards,
Arjun Thakur

From India, Madras
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It appears that the concerned employee is not entitled to the payment of gratuity as it is payable to an employee upon the termination of their employment after rendering continuous service for not less than five years.

Eligibility for Gratuity Payment

Section 2A (Continuous service) stipulates that for the calculation of a one-year period, an employee must have worked for not less than two hundred and forty days in an establishment that operates for not less than six days a week during the twelve calendar months preceding the relevant date for the calculation. In such cases, an employee becomes eligible for the payment of gratuity.

As mentioned, the concerned employee has completed 4 years, 7 months, and 7 days. The duration of 7 months and 7 days equates to 217 days. The minimum requirement for entitlement to the payment of gratuity is 4 years and 8 months. Since there is a shortfall of 23 days, the employee will unfortunately miss out on the benefits.

Regards,
BS Kalsi

From India, Mumbai
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As per the provision of gratuity act 1972 para 2 A if any employee completed his/her 4 year & 240 days of services then he/she will be eligible for payment of gratuity.
From India, Gurgaon
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The number of days for counting a year as per the Gratuity Act is 240. Hence, if you complete 240 days in 365 days in a year, you are eligible for one year. According to this, a person is eligible for gratuity by completing 240 days x 5 years. Therefore, if a person completed 4 years and 240 days in the 5th year, they are eligible for gratuity.

I have attached the High Court Judgment as a reference.

Regards,
Alphonse
[Phone Number Removed For Privacy Reasons]

From India, Madras
Attached Files (Download Requires Membership)
File Type: pdf Gratuity Madras High court Judgement.pdf (1.46 MB, 18 views)

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