I worked with a private limited company from 01.10.2008 to 30.04.2013, completing 4 years and 7 months. At the time of my full and final settlement, the company deducted 25 days of salary as notice pay recovery because I had not completed the 2-month notice period.
Eligibility for Gratuity
Am I eligible to receive gratuity? Please provide your valuable inputs.
Thanks with best regards,
Pankaj Patel
From India, Vadodara
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1Eligibility for Gratuity
Am I eligible to receive gratuity? Please provide your valuable inputs.
Thanks with best regards,
Pankaj Patel
From India, Vadodara
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The gratuity eligibility service as per Gratuity Act 1972 is 5 years.
From India, Madras
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From India, Madras
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Dear Pankaj ji, For your doubt you may please see the attachment case law of MADRAS HIGH COURT decision on GRATUITY. Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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Dear Pankaj The Eligibility criteria for Gratuity is 4 years and 240 days and if your organisation works for 5 days a week, the eligibility will be 4 years and 190 days. Regards, Mary
From India, Chennai
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From India, Chennai
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If you worked in Tamil Nadu, you are eligible for gratuity as per the Madras High Court verdict. If you belong to another state, you are not eligible for gratuity as you have not completed 5 years of service.
Regards,
D. Gurumurthy HR & IR Consultant, Hyderabad.
From India, Hyderabad
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Regards,
D. Gurumurthy HR & IR Consultant, Hyderabad.
From India, Hyderabad
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Dear Mr. Gugrumurthy ji & Pankaj ji,
Clarifications on Gratuity Eligibility
Clarity between gratuity eligibility service (5 or 4.8 years)?
The gratuity eligibility service as per the Gratuity Act 1972 is 5 years. However, according to the Supreme Court judgment and the quotation from the book mentioned below, it seems that the gratuity eligibility service is 4 years and 240 days.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also, and hence an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity."
Quotation from the book:
Law Book (Bare Act, 2004) i.e., The Payment of Gratuity Act, 1972 (Publisher: Law Publishers (Pvt.) Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy Reasons] Fax: [Phone Number Removed For Privacy Reasons].
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
Is eligible for gratuity. The Payment of Gratuity (Second Amendment) Act, 1984 clarifies this. One needs to calculate the number of years and service completion as follows.
A company which follows a 5-day week:
D.O.J: 01.05.2000
01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190 days
If we go by the above formula and if the person does not have any break in service, he will be eligible for gratuity on 01.11.2004."
The lack of clarity regarding this rule has created confusion among many employees. Some companies follow the 4 years and 240 days rule, while others follow the 5-year rule. Please help remove this confusion so that nobody's rights to gratuity are compromised.
Experts may please give their comments and advice on this matter.
Regards,
PBS KUMAR
From India, Kakinada
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Clarifications on Gratuity Eligibility
Clarity between gratuity eligibility service (5 or 4.8 years)?
The gratuity eligibility service as per the Gratuity Act 1972 is 5 years. However, according to the Supreme Court judgment and the quotation from the book mentioned below, it seems that the gratuity eligibility service is 4 years and 240 days.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also, and hence an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity."
Quotation from the book:
Law Book (Bare Act, 2004) i.e., The Payment of Gratuity Act, 1972 (Publisher: Law Publishers (Pvt.) Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy Reasons] Fax: [Phone Number Removed For Privacy Reasons].
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
Is eligible for gratuity. The Payment of Gratuity (Second Amendment) Act, 1984 clarifies this. One needs to calculate the number of years and service completion as follows.
A company which follows a 5-day week:
D.O.J: 01.05.2000
01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190 days
If we go by the above formula and if the person does not have any break in service, he will be eligible for gratuity on 01.11.2004."
The lack of clarity regarding this rule has created confusion among many employees. Some companies follow the 4 years and 240 days rule, while others follow the 5-year rule. Please help remove this confusion so that nobody's rights to gratuity are compromised.
Experts may please give their comments and advice on this matter.
Regards,
PBS KUMAR
From India, Kakinada
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Hello mr . Patel pankaj gratuity eligible for only 5 years of your service in any organization or firm . Its rule of govt .
From India, Tiruppur
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From India, Tiruppur
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Dear Sirs,
I worked with a private limited company from 04.01.2013 to 31.07.2017, completing 4 years, 6 months, and 26 days at the time of my full and final settlement with the company. Am I eligible to receive gratuity?
JAGDISH CHANDRA
From India, Delhi
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I worked with a private limited company from 04.01.2013 to 31.07.2017, completing 4 years, 6 months, and 26 days at the time of my full and final settlement with the company. Am I eligible to receive gratuity?
JAGDISH CHANDRA
From India, Delhi
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I worked in a company for more than 5 years. After termination, I requested the release of the Gratuity amount. However, the employer disagreed, making a point that during the one-year contract period, they broke my service for 2 or 3 days, and it would not come under continuous service. I heard somewhere that there is a Supreme Court judgment on this behalf.
Please advise.
Shiju N
From India, Alappuzha
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Please advise.
Shiju N
From India, Alappuzha
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Dear All, I have completed 4 year and 7 month in the provate company, please advise am i eligible for the gratuity.
From India, Pune
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From India, Pune
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If an employee worked for 4 years 6 months is he eligible for gratuity payment please reply and also our company follows 6 days a week
From India, Bengaluru
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From India, Bengaluru
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Dear all, I would like to get clarification on Gratuity. Is there an age limit for Gratuity entitlement? If yes, what is the age limit? If not, what are the remedies for employees to obtain Gratuity from their employer?
From India, Chennai
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From India, Chennai
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There is no age limit to claim gratuity. The only condition is that the gratuity is due and payable on the termination of service due to retirement, resignation, or death while in service. In the case of retirement and resignation, five years of service are necessary.
From India, Mumbai
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From India, Mumbai
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Less than 5 years service - Eligibility for payment of gratuity.pdf
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