I would like to know if an employee has been continuously working for 4 years in the same company, will the company be shut down for any reason? Now, can that employee receive a gratuity amount or not? Please suggest.
Thanks,
Sam.S
From India, Coimbatore
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2Thanks,
Sam.S
From India, Coimbatore
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If he has no continuous service in the 5th year he will not get gratuity. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Gratuity Payment and Retrenchment Benefits
Gratuity is payable only after the completion of 5 years of service. However, in the case of a shutdown, other benefits are applicable.
Please specify the state in which you are presently working for information on retrenchment benefits.
Regards
From India, Pune
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Gratuity is payable only after the completion of 5 years of service. However, in the case of a shutdown, other benefits are applicable.
Please specify the state in which you are presently working for information on retrenchment benefits.
Regards
From India, Pune
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I note that I would like to thank all of you for providing me with better replies. Can an employer deduct some percentage of the gratuity amount from the employee's CTC? I would like to know about this because I think this amount may be deducted from the total CTC. Please provide clarification about it. Thank you.
Regards.
From India, Coimbatore
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Regards.
From India, Coimbatore
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As per the Gratuity Act, the concerned employee will not be entitled to receive gratuity since he has worked less than 5 years.
Regards,
Sibabrata Majumdar
From India, Calcutta
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Regards,
Sibabrata Majumdar
From India, Calcutta
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Gratuity Eligibility Requirements
Until or unless one completes 5 years with the company, they cannot claim gratuity. This is the minimum requirement for gratuity. There is a possibility that if you have completed 4 years and 6 months or more, you may be able to apply for gratuity.
From India, Delhi
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Until or unless one completes 5 years with the company, they cannot claim gratuity. This is the minimum requirement for gratuity. There is a possibility that if you have completed 4 years and 6 months or more, you may be able to apply for gratuity.
From India, Delhi
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If I'm correct, Sam S.'s situation is a little different compared to others who are quitting without completing 5 years of continuous service. Here, the company is shutting down, and it should be treated on par with final settlement in cases other than resignation (e.g., death). A separation package should typically include appropriate compensation, including gratuity, regardless of qualification under the Gratuity Act. It is sometimes a negotiated settlement, a compensation package where all types of benefits are considered. If there are still company personnel present, Sam should file his claim with the designated authorities under the Gratuity Act/ALC so that he can receive whatever is legally available.
Thank you.
From India, Bangalore
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Thank you.
From India, Bangalore
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In the case of a shut down of a Company an employee with 4 years of service will not get gratuity and he has no right to claim it before any authority. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc