Can gratuity be paid if an employee resigns 10 days before his 5 years of service in the organisation? If he’s ready to serve one month’s notice period also
From India, Patna
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From India, Patna
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For gratuity purposes, service upto the last day is counted irrespective of the nature of tenure.
From India, Mumbai
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1593From India, Mumbai
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As per the Supreme Court guidelines, gratuity shall be payable to any employee who has put in 5 years of continuous service, i.e., those who have put in 4 years and 240 days in the fifth year of service are eligible to receive gratuity.
As per Sec. 4 of the Act, gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than 5 years on their superannuation, retirement, resignation, or in the event of their death or disablement due to accident or disease (provided that the completion of continuous service of five years shall not be necessary where the termination of employment is due to death or disablement).
So, in essence, if an employee works for 4 years and 240 days in the fifth year, they shall be eligible for the payment of gratuity.
From India, Madras
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As per Sec. 4 of the Act, gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than 5 years on their superannuation, retirement, resignation, or in the event of their death or disablement due to accident or disease (provided that the completion of continuous service of five years shall not be necessary where the termination of employment is due to death or disablement).
So, in essence, if an employee works for 4 years and 240 days in the fifth year, they shall be eligible for the payment of gratuity.
From India, Madras
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Less than 5 years service - Eligibility for payment of gratuity.pdf