Hi,
Can anyone guide me about the entitlement of Gratuity? There is a little bit of confusion regarding the entitlement of gratuity. When is an employee entitled to Gratuity? After the completion of five years or the completion of more than 4 years and six months? If I am not mistaken, there is a Karnataka High Court judgment also on this matter, stating that an employee will be entitled to gratuity after the completion of 4 years and six months. I need your view on this matter.
Thanks & Best Regards,
Arun Gupta
9312010127
From India, Delhi
Acknowledge(0)
Amend(0)
6Can anyone guide me about the entitlement of Gratuity? There is a little bit of confusion regarding the entitlement of gratuity. When is an employee entitled to Gratuity? After the completion of five years or the completion of more than 4 years and six months? If I am not mistaken, there is a Karnataka High Court judgment also on this matter, stating that an employee will be entitled to gratuity after the completion of 4 years and six months. I need your view on this matter.
Thanks & Best Regards,
Arun Gupta
9312010127
From India, Delhi
Acknowledge(0)Amend(0)
dear arun there is no such judgement by karnatka high court and gratuity appliablity is 5 years only. regards js malik
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear,
We do not have any objection if any of the employers give gratuity payment on completion of 4 years & six months of service. If there is any judgment, then send it to the employer along with the claim for gratuity.
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
We do not have any objection if any of the employers give gratuity payment on completion of 4 years & six months of service. If there is any judgment, then send it to the employer along with the claim for gratuity.
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
Dear Arun,
The entitlement of Gratuity is 5 years of completion of regular service in all industries except the News Paper Industries because in the news paper industries, it is 3 years (as per the Working Journalist & News Paper Workman Act).
From India, Mumbai
Acknowledge(0)Amend(0)
The entitlement of Gratuity is 5 years of completion of regular service in all industries except the News Paper Industries because in the news paper industries, it is 3 years (as per the Working Journalist & News Paper Workman Act).
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
As per the Gratuity Act, an employee has to complete 5 years of service in the same establishment/factory to be eligible. Also, if you have the Karnataka High Court judgment, please post it here and share it with our HR professional.
Regards,
Mouli
From India, Ahmadabad
Acknowledge(0)Amend(0)
As per the Gratuity Act, an employee has to complete 5 years of service in the same establishment/factory to be eligible. Also, if you have the Karnataka High Court judgment, please post it here and share it with our HR professional.
Regards,
Mouli
From India, Ahmadabad
Acknowledge(0)Amend(0)
Hi,
I have a doubt... In the appointment letters of our company, we mention the following provision: "Provisions of the Payment of Gratuity Act will be applicable in case of your retirement or death." Does that mean that only in the case of retirement or death, gratuity will be payable? If yes, can an employer specify such clauses?
Regards,
Neha Sharma
From India, Chandigarh
Acknowledge(0)Amend(0)
I have a doubt... In the appointment letters of our company, we mention the following provision: "Provisions of the Payment of Gratuity Act will be applicable in case of your retirement or death." Does that mean that only in the case of retirement or death, gratuity will be payable? If yes, can an employer specify such clauses?
Regards,
Neha Sharma
From India, Chandigarh
Acknowledge(0)Amend(0)
Dear Neha,
When the payment is to be made as per the Act itself, there is no need to mention anything in the appointment letter. However, if you wish to offer a more favorable amount, then we must specify this while finalizing the terms and conditions of employment. If we include conditions that contradict the law, those conditions are considered null and void. Please review the Payment of Gratuity Act, 1972, if it is applicable to your establishment, and adhere to the provisions outlined in this law.
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
When the payment is to be made as per the Act itself, there is no need to mention anything in the appointment letter. However, if you wish to offer a more favorable amount, then we must specify this while finalizing the terms and conditions of employment. If we include conditions that contradict the law, those conditions are considered null and void. Please review the Payment of Gratuity Act, 1972, if it is applicable to your establishment, and adhere to the provisions outlined in this law.
R.N. Khola
From India, Delhi
Acknowledge(0)Amend(0)
Thanks Mr. Khola for resolving my query. that means its useless to specify in case of retirement or death. even if person completes 5 yrs then too the employee is eligible for gratuity. Regards Neha
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
Dear Neha, Of course. Five years of continuous service as per section 2A of the P G Act, 1972.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
You are correct. On completion of continous 4 yrs 6 mths service, employee is entitled for Gratuity. Madras high Court judgement is available in this regard.
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
Dear Arun, Initially it is compulsory to complete the five years term for getting the gratuity amount. Regards, Digpal
From India, New+Delhi
Acknowledge(0)Amend(0)
From India, New+Delhi
Acknowledge(0)Amend(0)
Dear Neha,
For entitlement of Gratuity, 5 years continuous service is a must. 4 years and 6 months cannot be considered as 5 years, i.e., for eligibility. For calculation purposes of Gratuity, anything more than 6 months is to be considered as a year. For example, if an employee puts in 6 years, 6 months, and 1 day of service, the gratuity calculation needs to be made as if he had put in 7 years of service.
In the case of death, the ceiling of 5 years is not mandatory.
Regards,
Rajgopal
From India, Madras
Acknowledge(0)Amend(0)
For entitlement of Gratuity, 5 years continuous service is a must. 4 years and 6 months cannot be considered as 5 years, i.e., for eligibility. For calculation purposes of Gratuity, anything more than 6 months is to be considered as a year. For example, if an employee puts in 6 years, 6 months, and 1 day of service, the gratuity calculation needs to be made as if he had put in 7 years of service.
In the case of death, the ceiling of 5 years is not mandatory.
Regards,
Rajgopal
From India, Madras
Acknowledge(0)Amend(0)
Dear Arun,
As per my knowledge, gratuity is payable after the separation of an employee. The eligibility criteria are that the employee must have worked for the same company/establishment for at least 5 years in continuation.
From India, New Delhi
Acknowledge(0)Amend(0)
As per my knowledge, gratuity is payable after the separation of an employee. The eligibility criteria are that the employee must have worked for the same company/establishment for at least 5 years in continuation.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear,
Gratuity is applicable only when an employee has completed 5 years of service in the same organization. After completion of 5 years, each 6 months will be counted as 1 year.
With regards,
Sunny Mahajan
From India, Calcutta
Acknowledge(0)Amend(0)
Gratuity is applicable only when an employee has completed 5 years of service in the same organization. After completion of 5 years, each 6 months will be counted as 1 year.
With regards,
Sunny Mahajan
From India, Calcutta
Acknowledge(0)Amend(0)
can anybody guide me about bonus act like what is min bonus and maxi bonus & what is the exgratia? please...
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Its 5 yrs only. but after completion of five years someone who has worked for 5 yrs and 6 months would be entitle to get payment for 6 years.
From India, Visnagar
Acknowledge(0)Amend(0)
From India, Visnagar
Acknowledge(0)Amend(0)
Dear All,
I can see many HR fraternity members posting that 5 years is the minimum eligibility for Gratuity. This message is for those who have just referred to the books on Gratuity/Bare Acts, etc. Please refer to the below ruling in the Honourable Court of Madras High Court:
[Mettur Beardsell Ltd. (represented by its Personnel Manager Vs. Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad. HC)]
Any employee who has completed 4 years of continuous service and 240 days in the fifth year is to be considered as having 5 years of service for calculating Gratuity. As per Section 2A of the Payment of Gratuity Act, 240 days of continuous service have to be considered as a year's service.
Regards,
Suresh Ramalingam, B.A., B.L., M.L.M.
Manager - Compliance
From India, Mumbai
Acknowledge(0)Amend(0)
I can see many HR fraternity members posting that 5 years is the minimum eligibility for Gratuity. This message is for those who have just referred to the books on Gratuity/Bare Acts, etc. Please refer to the below ruling in the Honourable Court of Madras High Court:
[Mettur Beardsell Ltd. (represented by its Personnel Manager Vs. Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad. HC)]
Any employee who has completed 4 years of continuous service and 240 days in the fifth year is to be considered as having 5 years of service for calculating Gratuity. As per Section 2A of the Payment of Gratuity Act, 240 days of continuous service have to be considered as a year's service.
Regards,
Suresh Ramalingam, B.A., B.L., M.L.M.
Manager - Compliance
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Suresh Sir,
As you explained about gratuity, that is- (Refer to the below ruling in the Honourable court of Madras High Court Mettur Beardsell Ltd. (represented by its Personnel Manager Vs. Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad. HC) Any employee who has completed 4 years of continuous services and 240 days in the fifth year is to be considered as 5 years of service for calculating Gratuity. As per Section 2A of the Payment of Gratuity Act, 240 days continuous services have to be considered a year's service.)
Sir, is it applicable only for Madras or is it applicable for all over India.
Regards, Bandini
From India, Delhi
Acknowledge(0)Amend(0)
As you explained about gratuity, that is- (Refer to the below ruling in the Honourable court of Madras High Court Mettur Beardsell Ltd. (represented by its Personnel Manager Vs. Regional Labour Commissioner (Central Authority under the Payment of Gratuity Act, 1972), Madras, 1998 LLR 1072 (Mad. HC) Any employee who has completed 4 years of continuous services and 240 days in the fifth year is to be considered as 5 years of service for calculating Gratuity. As per Section 2A of the Payment of Gratuity Act, 240 days continuous services have to be considered a year's service.)
Sir, is it applicable only for Madras or is it applicable for all over India.
Regards, Bandini
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Doctors on Part Time payment-Gratuit y eligibility- Gujarat High Court.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt