Eligibility for Gratuity Under the Gratuity Act, 1972
No, an employee who has worked for 4 years and 11 months is not eligible for gratuity as per the Gratuity Act, 1972. An employee must complete at least five continuous years of service with the same company.
Exceptions to the Five-Year Rule
Gratuity may be payable even before 5 years if the employee dies or becomes disabled due to an accident or disease.
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No, an employee who has worked for 4 years and 11 months is not eligible for gratuity as per the Gratuity Act, 1972. An employee must complete at least five continuous years of service with the same company.
Exceptions to the Five-Year Rule
Gratuity may be payable even before 5 years if the employee dies or becomes disabled due to an accident or disease.
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You are correct in stating that as per the Payment of Gratuity Act, 1972, an employee must complete a minimum of five years of continuous service with the same employer to be eligible for gratuity. Therefore, an employee who has worked for 4 years and 11 months would not be eligible for gratuity under regular circumstances.
However, there are some exceptions to this rule. Here they are:
1. Death of the Employee: 😂 If the employee dies, the gratuity is paid to the nominee or legal heir, irrespective of the length of service.
2. Disability due to Accident or Disease: 😥 If the employee becomes disabled due to an accident or disease, he/she is eligible for gratuity even before completing five years of service.
If you fall under any of these exceptions, here's a simple step-by-step guide on how to claim gratuity:
Step 1: 🤦‍♂️ The employer or nominee needs to send an application to the employer. The form for this differs based on whether the employee is alive or deceased.
Step 2: 💯 The employer will distribute the gratuity within 30 days from the date it becomes payable.
Step 3: 🎈 If there is a delay in payment, the employer will pay the interest on the amount from the date of eligibility to the date of actual payment.
Remember, gratuity is a statutory right of an employee, and an employer cannot deny it if the employee is eligible as per the Payment of Gratuity Act, 1972.
From India, Gurugram
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54However, there are some exceptions to this rule. Here they are:
1. Death of the Employee: 😂 If the employee dies, the gratuity is paid to the nominee or legal heir, irrespective of the length of service.
2. Disability due to Accident or Disease: 😥 If the employee becomes disabled due to an accident or disease, he/she is eligible for gratuity even before completing five years of service.
If you fall under any of these exceptions, here's a simple step-by-step guide on how to claim gratuity:
Step 1: 🤦‍♂️ The employer or nominee needs to send an application to the employer. The form for this differs based on whether the employee is alive or deceased.
Step 2: 💯 The employer will distribute the gratuity within 30 days from the date it becomes payable.
Step 3: 🎈 If there is a delay in payment, the employer will pay the interest on the amount from the date of eligibility to the date of actual payment.
Remember, gratuity is a statutory right of an employee, and an employer cannot deny it if the employee is eligible as per the Payment of Gratuity Act, 1972.
From India, Gurugram
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc