Hi, I have completed 4 years, 6 months, and 12 days in a startup. During the initial years of service, I used to work 5 days and a half day on Saturdays. Later, the organization transitioned to an alternate Saturday working model. We work 6 days a week during the first, third, and fifth (if it exists) week of the month, and work 5 days a week during the second and fourth weeks of the month. Will I be eligible for gratuity? Please let me know. Your assistance would be greatly appreciated. I have gone through all the judgments, but I could not understand much from them. Thank you in advance.
From India, Bengaluru
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From India, Bengaluru
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Eligibility for Gratuity Based on Service Duration
As per the Payment of Gratuity Act, you are not entitled to gratuity since you have not completed 5 years of service. However, based on some judgments reported from the Madras and Kerala High Courts, if we consider that 4 years and 240 days in the fifth year would qualify for gratuity, you will still need to establish that you have worked for 240 days in the fifth year.
It is true that for establishments working 5 days a week, instead of 240 days, 190 days would qualify for continuous service. But if you receive a salary for 30 or 31 days a month, the concept of 190 days has no relevance. Therefore, it is not possible for you to claim that you have worked for 240 days in 6 months, as you might have worked for a maximum of 192 days (6 X 30 days + 12 days) in the fifth year.
Regards, Madhu.T.K
From India, Kannur
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4526As per the Payment of Gratuity Act, you are not entitled to gratuity since you have not completed 5 years of service. However, based on some judgments reported from the Madras and Kerala High Courts, if we consider that 4 years and 240 days in the fifth year would qualify for gratuity, you will still need to establish that you have worked for 240 days in the fifth year.
It is true that for establishments working 5 days a week, instead of 240 days, 190 days would qualify for continuous service. But if you receive a salary for 30 or 31 days a month, the concept of 190 days has no relevance. Therefore, it is not possible for you to claim that you have worked for 240 days in 6 months, as you might have worked for a maximum of 192 days (6 X 30 days + 12 days) in the fifth year.
Regards, Madhu.T.K
From India, Kannur
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf