Gratuity Eligibility and Retrenchment Compensation Inquiry
I require some details and clarity regarding my gratuity eligibility at my current company. Details are provided below, and I kindly request someone to give a clear picture of gratuity eligibility.
I joined my current organization on 23rd May 2012. Recently, I received information from HR and management that they will be closing this business unit possibly by mid-next year, 2017. They have informed a few employees, including myself, that our services will be required until December 2016, with a verbal communication to start seeking job opportunities elsewhere. They have confirmed that they will issue a relieving letter by October 2016, providing a three months' notice period.
As of October, I will have 4 years, 4 months, and 8 days of experience, and by December, I will have 4 years, 7 months, and 8 days (or 4 years and 222 days) of experience. Firstly, I would like to know if I am eligible for gratuity based on my service days until December and due to the company's termination/closure. If I leave before December on notice, will they still consider my gratuity even if I have not completed the full 4 years and 222 days?
Understanding Retrenchment Compensation
I would also like to understand more about the retrenchment compensation provided by companies to employees in case of BU closure or termination. How should I proceed if they offer benefits like 15 days of salary multiplied by the number of years of service? Is there a possibility for employees to request or revise retrenchment benefits?
I would appreciate it if someone could provide clear insights on this matter and offer advice. Thank you in advance.
Regards,
Bkmy
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I require some details and clarity regarding my gratuity eligibility at my current company. Details are provided below, and I kindly request someone to give a clear picture of gratuity eligibility.
I joined my current organization on 23rd May 2012. Recently, I received information from HR and management that they will be closing this business unit possibly by mid-next year, 2017. They have informed a few employees, including myself, that our services will be required until December 2016, with a verbal communication to start seeking job opportunities elsewhere. They have confirmed that they will issue a relieving letter by October 2016, providing a three months' notice period.
As of October, I will have 4 years, 4 months, and 8 days of experience, and by December, I will have 4 years, 7 months, and 8 days (or 4 years and 222 days) of experience. Firstly, I would like to know if I am eligible for gratuity based on my service days until December and due to the company's termination/closure. If I leave before December on notice, will they still consider my gratuity even if I have not completed the full 4 years and 222 days?
Understanding Retrenchment Compensation
I would also like to understand more about the retrenchment compensation provided by companies to employees in case of BU closure or termination. How should I proceed if they offer benefits like 15 days of salary multiplied by the number of years of service? Is there a possibility for employees to request or revise retrenchment benefits?
I would appreciate it if someone could provide clear insights on this matter and offer advice. Thank you in advance.
Regards,
Bkmy
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According to the Payment of Gratuity Act, 1972 and Rules, an employee is eligible for getting gratuity after the completion of five years in an organization. On the other hand, if a worker has worked for 240 days a year, it is considered complete. It does not matter whether there are six working days in a week or five working days in a week. In my opinion, after completing five years, you will be entitled to the benefit of gratuity, whether you continue to work or not.
From India, Vadodara
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8From India, Vadodara
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